To provide financial stability outside of conventional job-based plans, the Centre is developing a Universal Pension Scheme.

The scheme aims to streamline current pension plans and increase their accessibility, especially for unorganized workers, traders, and self-employed people, according to an ET report. The scheme will be available to everyone, regardless of their job or business.

The ET report states that the Labour Ministry has initiated talks on the voluntary and contributory pension plan that would enable people from all backgrounds to save for their retirement, irrespective of their work status.

According to the report, once the framework is established, the government will meet with key stakeholders to refine the specifics.

According to sources cited by ET, the Universal Pension Scheme is a voluntary, contributory scheme that seeks to provide social security to everyone. It will be available to anyone, including unorganised sector jobs, traders, and self-employed groups. The pension benefits are available to those aged 18-60.

The report also recommended that in order to reach a wider range of people, this scheme might include several currently offered government pension plans, such as the Pradhan Mantri-Shram Yogi (PM-SYM) and National Pension Scheme for Traders and Self-Employed (NPS-Traders).

The central government could encourage states to integrate their pension schemes under an umbrella scheme, ensuring equal government contribution distribution, increased pension amounts, and no beneficiary duplication.

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