The Centre is reportedly working on a new universal pension scheme that could provide financial security to people beyond traditional job-based plans.
The Labour Ministry has begun discussions on a voluntary and contributory scheme that would allow individuals from all walks of life to invest in their retirement, regardless of their employment status, according to an ET report.
The report said that once the framework is in place, the government will hold consultations with key stakeholders to fine-tune the details.
The idea behind launching such a scheme is to bring together existing pension schemes under one umbrella, making them more appealing and accessible, especially for unorganised workers, traders, and self-employed individuals aged 18 and above, according to the report.
The voluntary and contributory pension scheme will be “open for everyone” and not be restricted to any jobs or business sectors, the report said quoting a source.
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The report also suggested that this scheme might absorb some existing pension plans run by the government to enhance coverage to all sections of society.
The contributory scheme is expected to include unorganised sector jobs, traders and self-employed groups and entities, it said adding that all in the age bracket of 18-60 years will be eligible to avail pension benefits after 60 under the plan.
Major govt pension schemes in India: What are the options available?
At present, the government in India runs several pension schemes for people coming from different sections of society. These plans are aimed at ensuring financial security to every individual after retirement. Here are 7 such programmes:
- Atal Pension Yojana (APY)
If you work in the unorganized sector and are worried about your retirement, then this scheme can be beneficial for you. After the age of 60, it provides a monthly pension of ₹ 1,000 to ₹ 5,000, for which you have to contribute regularly.
- National Pension System (NPS)
This is a voluntary retirement scheme, which is open to government, private sector employees and common citizens. By investing in it, you can get both lump sum and pension at the time of retirement.
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