The recent launch of the Universal Pension Scheme has certainly been a long time coming given the increasing number of the elderly in the context of our population, as the initiative is set to provide a pension scheme for Bangladeshis above the age of 18, and will start enjoying lifetime pension benefits upon reaching 60.
The scheme will be separated into six categories, with four of them being launched in the here and now with the other two launching later.
While it is true that Bangladesh currently enjoys a demographic dividend due to its youthful population, it has been close to a decade now since the pension plan was first announced, and in that time many of those who had been entering the job market now have established careers who are most likely planning on their retirement in the coming decades.
As such, the launch of the Universal Pension Scheme could not have been more fortuitous.
The current scheme dictates that, in order to join it, one has to register through their national identity (NID) card which will provide applicants with a number. From there applicants can pay their monthly installments through mobile financial services. This is an incredibly welcome convenience, given the steady rise of MFSs in Bangladesh.
However, as with every ambitious initiative, there will always be worries about implementation. Given that the UPS involves people’s livelihoods and future well-being, we hope the scheme has the necessary reinforcements in place so as to not fall prey to abuse.
This is an immense undertaking with major implications for all citizens and employers in the nation. Which is why it is all the more imperative that the government consults widely and draws upon lessons available from other countries to ensure the proposed schemes are practical to implement and can deliver benefits at optimum cost.
