Concerned over the problems of ageing population world over, India on Sunday wanted comprehensive pension reforms in both developed and developing countries as the challenges were similar.

" ...The reform of the pension system must begin now — because it is already too late and the management of pension funds will be the most important challenge faced by financial institutions," FM P Chidambaram said at the G-20 finance ministers meeting.

"Huge payment obligations stare in the face of ageing countries and half measures will not do. The alternative is fiscal stress and destabilisation of the macro-economic balance,"he said.

An unfunded pension system is unmitigated disaster, he said adding it is acknowledged that the ‘pay as you go' system is unsustainable not even in the medium term.

"Every worker must save for retirement and government or employer may consider making a matching contribution, "he said. Thus, the contribution will be a defined one and the benefit will depend upon the manner in which accumulations are invested and the performance of the economy, he said.

His remarks came even as he has been finding it difficult to implement pension reforms in the country in the face of stiff opposition from UPA partners — the Left parties.

Referring to ageing population in developed nations, he said apart from pension reforms, governments may be required to design an appropriate social security net, including modified healthcare plans that lay emphasis on the needs of the aged.

"These nations will have to devise financial products for meeting healthcare requirements of elderly,"he said.