Bangalore: According to the academics at London's Cass Business Scholl, Rational investors planning to save in a pension scheme should not do so before the age of 35. However, they should set aside a third of their salary from the age of 55. Most of us have been living with this stereotypical notion that we should invest in a pension scheme as early as possible to receive the benefit from the greatest possible compounding of investment returns. In India, the Government launched the National pension scheme in 2009 to promote security for people in their retired life. Here we follow the defined contribution system which the UK based researchers have tried to analyze. The research says that human capital increases until about age 35. This is because of the very high rate of salary growth in the early years. Thus when capital is increasing, it is optimal to consume most (if not all) of the labour income received. However, when salary growth rates begin to slow down (after age 35) and human capital begins to fall, the retirement motive becomes more important as the member recognises the need to build up the pension fund in order to support consumption after retirement. As a result,consumption remains largely constant from age 35 onwards (despite the continuing, but slower, growth in labour income), with the additional income saved to fund post-retirement consumption. The Cass research suggests the governments should consider making pension saving compulsory for workers beyond their mid-30s. The research basically focuses on 'optimal life cycle financial planning behavior' and 'how real people diverge from rational behavior'.