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.

Also read: Your EPF deposits to earn you fixed return? Here’s all you need to know about new proposal

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 for every individual after retirement. Here are 7 such programmes:

  1. 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 Rs 1,000 to Rs 5,000, for which you have to contribute regularly.

  1. 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.

  1. Employees’ Pension Scheme (EPS-95)

If you work in the organised sector, then this scheme has been designed to protect your future. In this scheme run by EPFO, the employer deposits 8.33% of your salary in the pension fund, which gives you pension after retirement.

  1. Pradhan Mantri Kisan Mandhan Yojana (PM-KMY)

This scheme is specially designed for small and marginal farmers. If you contribute regularly to this scheme in the range of Rs 55 to Rs 200, then after the age of 60 years you get a monthly pension of Rs 3,000.

  1. Pradhan Mantri Shram Yogi Mandhan Yojana (PM-SYM)

If you are a street vendor, domestic worker, laborer or any other person working in the unorganised sector, then this scheme can be helpful for you. After the age of 60, you get the benefit of Rs 3,000 monthly pension.

  1. Pradhan Mantri Vyapari Mandhan Yojana (PMVYMY)

If you are a small businessman or self-employed person, then this scheme is designed for you. Under this scheme, you can deposit a sum in the range of Rs 55 to Rs 200 until you reach 60 years of age. After the age of 60, it provides a monthly pension of Rs 3,000, which maintains financial stability.

  1. Swavalamban Yojana (now known as NPS-Lite)

This is a simple and affordable pension scheme for low-income people. It is a lighter version of the National Pension System (NPS), designed keeping small investors in mind.

Also read: New NPS milestone! Assets under management seen at nearly Rs 30 lakh crore in 5 years

Conclusion:

These schemes run by the government are very important to make people financially self-reliant and secure their future. If you are also eligible for any of these schemes, then investing in it as soon as possible can be beneficial.