Universal Pension Scheme: The Government of India is set to introduce a pension scheme aimed at all citizens, which will be referred to as the ‘Universal Pension Scheme.’ This initiative will be implemented under the Employees’ Provident Fund Organisation (EPFO).
Universal Pension Scheme under EPFO
Reports indicate that several existing pension schemes will be integrated into this new framework to enhance its appeal and accessibility. The government intends for individuals from all demographics to benefit from this initiative. It is under consideration to incorporate current schemes such as the Pradhan Mantri Shram Yogi Maandhan Yojana, the National Pension Scheme, and the Atal Pension Yojana into this comprehensive plan.
What is the objective of the scheme
The objective is to ensure that workers, traders, and self-employed individuals in the unorganized sector can avail themselves of the benefits. Participation in the scheme will be open to anyone aged 18 and above, with pension disbursements commencing at the age of 60. It is important to note that this scheme will not be tied to employment status, allowing universal access.
What is the present scenario
Currently, individuals can receive a monthly pension of Rs 3,000 by contributing between Rs 55 and Rs 200 to these schemes, with additional contributions from the government. The demographic of senior citizens in India is growing rapidly, with projections suggesting that by 2036, the population aged 60 and above will reach 227 million, constituting 15 percent of the total population. This figure is expected to rise to 347 million by 2050, representing 20 percent of the overall population. Given this increasing demographic, the establishment of a pension scheme has become increasingly necessary.