Universal Pension Scheme: To strengthen social security in India, the Modi government is working on a new and ambitious project called the ‘Universal Pension Scheme’. This pension scheme is being created to provide social security to all citizens, which will include workers in the unorganized sector, traders, self-employed persons, and all people above the age of 18 years. This scheme is an important effort to make every Indian citizen financially secure in old age.
Who will get the benefit of the Universal Pension Scheme
The Universal Pension Scheme will be a voluntary scheme and any person can contribute to it, which will give them a pension after the age of 60. This scheme will not be linked to employment so that everyone can take advantage of it.
Currently, workers in the unorganized sector do not have access to government savings schemes. This scheme will also provide them with social security. This scheme will prove to be a boon for those who are in uncertain employment.
In addition, the government is considering merging existing schemes like Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM), National Pension Scheme (NPS) and Atal Pension Yojana into this new framework. Currently, these schemes provide a monthly pension of Rs 3,000 on a contribution of Rs 55 to Rs 200, with the government also contributing.
Most importantly, the central government can also encourage states to merge their pension schemes into this scheme, so that there can be equitable distribution of government contribution and increase the pension amount. This scheme will promote cooperation between the states and the central government.
Need for Social Security
The number of senior citizens in India’s population is increasing rapidly. By 2036, the number of people above 60 years of age is expected to be 227 million, which will be 15 percent of the total population. This number will reach 347 million by 2050, which will be 20 percent of the total population.
Keeping this growing population in mind, the need for a comprehensive pension scheme is being felt. This scheme is important to provide economic security to the growing elderly population.
Such schemes are already running in these countries
Let us tell you, developed countries like America, Europe, Canada, Russia, and China already have comprehensive social insurance systems running, which include pensions, health services, and unemployment benefits. India is also moving in this direction so that its social security system can be strengthened. This scheme is an important step to bring India into the category of developed countries.