- By Aditya Pratap Singh
- Wed, 26 Feb 2025 05:14 PM (IST)
- Source:JND
Universal Pension Scheme: The union government is working on a special 'Universal Pension Scheme', which will be available to all citizens, including workers in the unorganised sector, traders and self-employed individuals. According to an NDTV report, the scheme aims to provide a voluntary and contributory pension system to anyone aged 18 and above, ensuring financial security after retirement.
Currently, a significant portion of workers in the unorganised sector, such as construction workers, domestic workers and gig workers, do not have access to large-scale government savings schemes. As per the report, the new initiative will allow them, along with salaried employees and self-employed individuals, to contribute to their retirement funds without being tied to any specific job.
Key features of the Universal Pension Scheme
Voluntary & open to all - Unlike existing pension programmes that are linked to employment, this scheme is available to everyone, regardless of occupation.
No government contribution - While the scheme allows individuals to contribute to their pension, the government will not provide direct financial contributions as it does in some existing schemes.
Potential consolidation of existing schemes - Sources suggest that the government may streamline the existing pension schemes to create a more comprehensive and efficient pension system. However, it will not replace the National Pension Scheme (NPS), which will continue to operate independently.
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India's current pension landscape
The union government do provide various pension schemes targeting specific groups, such as the Atal Pension Yojana, which provides a monthly pension of Rs. 1,000 to low income individuals. The Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM) is desigend to provide Rs. 1,000 - Rs. 1,500 as penison to street vendors, domestic workers and labourers. Schemes like the Pradhan Mantri Kisan Mandhan Yojana also provide a financial assistance of Rs. 3,000 to farmers after the age of 60.
Many developed countries, including the US, Canada and European countries, have comprehensive social security systems, including pensions, healthcare and unemployment benefits. The Indian government's move to introduce a universal pension scheme is seen as a step towards strengthening the country's social security framework.