New Delhi: The Employees Provident Fund Organisation (EPFO) has warned that India could face "financial nightmare" since the country did not have adequate pension schemes either in the public or private sector.

This apprehension comes in view of an expected surge in aged population in the next four decades and was conveyed to the Planning Commission recently.

In a presentation to the Commission, the country's largest provident fund said the schemes -- National Old Age Pension, EPF and the proposed Civil Service Pension by private sector -- were "inadequate" in coverage and service delivery.

Forecasting that male and female population over 60 years would swell by 2051, the EPFO said, "no modern Government can afford to have a large population of elderly destitutes."

The National Old Age Pension Scheme is a tax-financed scheme providing floor level income assistance to the very poor old persons who are destitutes and offers Rs 75 per month per beneficiary.

The EPF schemes are 'publicly managed contributory mandatory scheme of forced savings' for employed workers and the 'privately managed voluntary defined contribution scheme', which is yet to assume shape.

Admitting that its compliance mechanism was ineffective and accounting methods were unreliable, the EPFO, which cover 10 per cent of the labour market, said changes have become imperative for it because of the paradigm shift in labour market dynamics due to rising labour market mobility and shift from organised to unorganised sector.