The Central Government is making preparations about a universal pension for all citizens of India. The main objective behind this scheme is financial security for every citizen in old age. This scheme is considered to be applicable for all categories, from government or salaried employees to self-employed or gig workers. Moreover, the government is striving to include workers working in the unorganized sector under this scheme. For this, the Labour Ministry has initiated the drafting of the proposal document. This would be voluntary and does not have any contribution from the government.
Emergence Of Need Of Universal Pension Scheme
India is rapidly increasing in number of senior citizens. By the year 2036, estimates show that the number of people above 60 years will reach 227 million, which is going to be 15% of the total population in the country. In view of this number that is only going to grow, the Universal Pension Scheme can be a significant stride in ensuring financial security for these people in old age.
Existing Pension Schemes
Currently, one of the pension schemes by the government is Atal Pension Yojana and PM Shram Yogi Mandhan Yojana. One can obtain benefits from these schemes once the person turns 60 years of age. Under Atal Pension Yojana, pension amounts vary from Rs. 1000 to Rs. 5000, whereas, under PM Shram Yogi Mandhan Yojana, individuals receive grants of Rs 3000 per month at 60 years of age.
Advantages of Universal Pension Scheme
- Comprehensive Coverage- This would cover all citizens whether of self-employment or salary.
- Financial Security- Regular income would be ensured in old age.
- Optional- It would be dependent on individuals whether to join or not.
- Unified scheme-It would include all the various existing schemes under one umbrella.
Challenges In Universal Pension Scheme
- Financial burden: This may be a very huge financial burden for the government, especially because of contribution by the government.
- Administrative: Introduced on such a large scale will cause tremendous burden on administration.
- Social support: To make every section aware of this scheme, and to gain support will itself be a challenge.
Conclusion
The Universal Pension Scheme is an ambitious scheme aimed at providing social security to all citizens of this country in old age. However, this requires extensive preparation and social support.
Also Read: EPF Pension Increase: Convert Your Full PF Into Pension, Major Update