Govt to Launch Universal Pension Scheme: Anyone Can Apply!

According to reports, the central government is developing a universal pension scheme to offer financial security beyond traditional, employment-linked retirement plans. A story in the Economic Times says that the Labour Ministry has started talks on a voluntary and contributory pension plan that would enable people from all walks of life to save for retirement, no matter their employment status. The government plans to meet with important stakeholders to improve the scheme’s implementation and structure after the framework is complete.

The primary goal of this project is to consolidate existing pension plans under a single platform, making them accessible and important, especially for traders, self-employed individuals, and unorganized workers who are at least 18 years old. The scheme will be available to everyone and will not be limited to any specific sector or profession.

Additionally, according to reports, this new pension model might incorporate current government pension schemes, increasing coverage for a wider range of economic groups. Individuals in the unorganized sector, traders, and self-employed groups are anticipated to gain from the program. Eligibility for the program is open to anyone between the ages of 18 and 60, enabling them to earn pension payments after retirement at age 60.

India’s Government Universal Pension Plans: Key Options

The Indian government offers a number of pension plans to give people from various socioeconomic backgrounds financial security. Universal pension scheme, which cover both organized and unorganized sector workers, aim to ensure a steady income upon retirement. These are a some of most popular pension plans that are currently offered:

1. Atal Pension Yojana (APY)

APY, which targets workers in the unorganized sector, provides financial security after retirement. After the age of 60, beneficiaries who make consistent contributions can get a monthly pension that ranges from ₹1,000 to ₹5,000.

2. National Pension System (NPS)

NPS is a voluntary retirement savings scheme open to government employees, private-sector workers, and general citizens. It allows contributors to build a retirement corpus, providing both a lump sum amount and a monthly pension upon retirement.

3. Employees’ Pension Scheme (EPS-95)

Designed for individuals working in the organised sector, EPS-95 is managed by the Employees’ Provident Fund Organisation (EPFO). Under this scheme, 8.33% of an employee’s salary is contributed by the employer towards the pension fund, ensuring a regular pension after retirement.

4. Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

This scheme is tailored for small and marginal farmers, allowing them to contribute between ₹55 and ₹200 per month. After turning 60, farmers receive a monthly pension of ₹3,000, ensuring financial security in old age.

5. Pradhan Mantri Shram Yogi Maandhan Yojana (PM-SYM)

Aimed at workers in the unorganised sector, such as street vendors, domestic workers, and laborers, this scheme guarantees a monthly pension of ₹3,000 post-retirement for those who make regular contributions during their working years.

6. Pradhan Mantri Vyapari Maandhan Yojana (PMVYMY)

This pension scheme is specifically designed for small traders and self-employed individuals. By contributing ₹55 to ₹200 per month until the age of 60, beneficiaries receive a fixed monthly pension of ₹3,000, providing financial stability in their later years.

7. NPS-Lite (Previously Swavalamban Yojana)

This is a simplified and affordable version of the National Pension System (NPS), aimed at low-income individuals. It enables small investors to build a retirement corpus, offering them a secure financial future with pension benefits.

Conclusion

These government-backed pension schemes play a crucial role in ensuring financial independence and stability for individuals after retirement. If you qualify for any of these schemes, enrolling early can help you build a secure future with guaranteed pension benefits.