The Government of India is considering introducing a ‘Universal Pension Scheme’ to achieve financial security in retirement for everyone. The Ministry of Labour and Employment has held discussions with other stakeholders to structure a scheme for wider pension coverage, particularly for individuals in the unorganized sector.
Pension benefits are currently mostly for formal sector workers under plans such as the Employees’ Pension Scheme (EPS) and the Atal Pension Yojana (APY). Yet, most of the workforce, including gig workers and self-employed workers, do not have a planned retirement strategy. The new scheme will fill this gap by providing a sustainable and universal pension solution.
Under this suggested structure, citizens would contribute part of their earnings to a pension fund, with potential government co-contributions and incentives. The scheme can also feature flexible withdrawal privileges and a guaranteed minimum pension, providing long-term economic security for retirees. Specialists are confident that this step will considerably lower financial insecurity in old age and dependency on family assistance.
As consultations continue, the government is set to release a plan of implementation, emphasizing affordability, accessibility, and long-term sustainability. If properly implemented, the Universal Pension Scheme may be a benchmark in India’s social security history, securing millions with a dignified and secure retirement.
