Recently launched Atal pension scheme which provides fixed monthly income after
the age of 60 with a very low cost of annual premium is the right step in the
direction of financial inclusion and at a very opportune moment. The need for such
a scheme arises due to many social and economic factors, which are:
- Much of the population is beyond financial inclusion and scope of any social
security schemes.
- Indian society is moving towards nucleated-family structure and senior citizens
are facing many problems due to lack of any financial help.
- large number of persons work in unorganised sector without any social security
at the time of retirement.
- the demographic profile of India will not last forever and the contribution of
present generation will not produce strain on future generation for their social
security.
- The huge requirement of capital to generate infrastructure and productive
processes.
The scheme is highly feasible due to low premium rates and also given the huge
population of India will result in increased investment in projects which will
increase the money-value of premia and will not put a strain on the fiscal account
of government at the time of payment. This pension scheme will result in financial
inclusion of masses, increase in investment, social security and less pressure
over government for meeting infrastructure needs in present as well as social
expenditure in future and thus a very novel and right step in right direction.
Ans2:
Recently launched Atal pension scheme which provides fixed monthly income after
the age of 60 with a very low cost of annual premium is the right step in the
direction of financial inclusion and at a very opportune moment. The need for such
a scheme arises due to many social and economic factors, which are:
- Much of the population is beyond financial inclusion and scope of any social
security schemes.
- Indian society is moving towards nucleated-family structure and senior citizens
are facing many problems due to lack of any financial help.
- large number of persons work in unorganised sector without any social security
at the time of retirement.
- the demographic profile of India will not last forever and the contribution of
present generation will not produce strain on future generation for their social
security.
- The huge requirement of capital to generate infrastructure and productive
processes.
The scheme is highly feasible due to low premium rates and also given the huge
population of India will result in increased investment in projects which will
increase the money-value of premia and will not put a strain on the fiscal account
of government at the time of payment. This pension scheme will result in financial
inclusion of masses, increase in investment, social security and less pressure
over government for meeting infrastructure needs in present as well as social
expenditure in future and thus a very novel and right step in right direction.
Ans3:
Due to the progress in Healthcare, low birth rate and economic development of the country, there has been an increase in elderly population. To provide them economic independence, a properly created universal pension scheme is sought after. There are various other factors which mandate the need of such a policy, such as :
1) India has a vast unorganised labour market and the workforce is not covered under any mandatory pension scheme.
2) Low penetration of Health Insurance Schemes
3) Inefficient Public Sector Healthcare
4) Expensive Private Sector Healthcare
5) Lack of proper Familiy Care
Given India's current spending on Healthcare, with the properly planning, a universal pension health scheme can be formulated without putting stress on government Finances. Following factors can be taken into account :
- Simple Selection Criteria (based on only age and residence)
- Non contributory Pension can be taxable to earn additional revenues
- Additional increase in current expenditure will be nominal, 1% of GDP
- Wider Coverage of Population
Since the current elederly population of the country is likely to increase in near future, a Universal Pension Scheme is the need of the hour. It will help in enhancing the welfare of both the present and future aged population by providing them an assurance of good quality of life and adequate economic security.
the age of 60 with a very low cost of annual premium is the right step in the
direction of financial inclusion and at a very opportune moment. The need for such
a scheme arises due to many social and economic factors, which are:
- Much of the population is beyond financial inclusion and scope of any social
security schemes.
- Indian society is moving towards nucleated-family structure and senior citizens
are facing many problems due to lack of any financial help.
- large number of persons work in unorganised sector without any social security
at the time of retirement.
- the demographic profile of India will not last forever and the contribution of
present generation will not produce strain on future generation for their social
security.
- The huge requirement of capital to generate infrastructure and productive
processes.
The scheme is highly feasible due to low premium rates and also given the huge
population of India will result in increased investment in projects which will
increase the money-value of premia and will not put a strain on the fiscal account
of government at the time of payment. This pension scheme will result in financial
inclusion of masses, increase in investment, social security and less pressure
over government for meeting infrastructure needs in present as well as social
expenditure in future and thus a very novel and right step in right direction.
Ans2:
Recently launched Atal pension scheme which provides fixed monthly income after
the age of 60 with a very low cost of annual premium is the right step in the
direction of financial inclusion and at a very opportune moment. The need for such
a scheme arises due to many social and economic factors, which are:
- Much of the population is beyond financial inclusion and scope of any social
security schemes.
- Indian society is moving towards nucleated-family structure and senior citizens
are facing many problems due to lack of any financial help.
- large number of persons work in unorganised sector without any social security
at the time of retirement.
- the demographic profile of India will not last forever and the contribution of
present generation will not produce strain on future generation for their social
security.
- The huge requirement of capital to generate infrastructure and productive
processes.
The scheme is highly feasible due to low premium rates and also given the huge
population of India will result in increased investment in projects which will
increase the money-value of premia and will not put a strain on the fiscal account
of government at the time of payment. This pension scheme will result in financial
inclusion of masses, increase in investment, social security and less pressure
over government for meeting infrastructure needs in present as well as social
expenditure in future and thus a very novel and right step in right direction.
Ans3:
Due to the progress in Healthcare, low birth rate and economic development of the country, there has been an increase in elderly population. To provide them economic independence, a properly created universal pension scheme is sought after. There are various other factors which mandate the need of such a policy, such as :
1) India has a vast unorganised labour market and the workforce is not covered under any mandatory pension scheme.
2) Low penetration of Health Insurance Schemes
3) Inefficient Public Sector Healthcare
4) Expensive Private Sector Healthcare
5) Lack of proper Familiy Care
Given India's current spending on Healthcare, with the properly planning, a universal pension health scheme can be formulated without putting stress on government Finances. Following factors can be taken into account :
- Simple Selection Criteria (based on only age and residence)
- Non contributory Pension can be taxable to earn additional revenues
- Additional increase in current expenditure will be nominal, 1% of GDP
- Wider Coverage of Population
Since the current elederly population of the country is likely to increase in near future, a Universal Pension Scheme is the need of the hour. It will help in enhancing the welfare of both the present and future aged population by providing them an assurance of good quality of life and adequate economic security.
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