Universal pension starts from 2022-23

A universal pension scheme for citizens aged 61 and above will be introduced from fiscal 2022-23, said Finance Minister AHM Mustafa Kamal yesterday.

The government has taken a policy decision to enact the Universal Pension Management Act 2022, he said.

A draft of the act has already been made and it would be presented before the parliament within this year, he added.

In his budget speech, the minister also said the average life expectancy at present is 73 years in Bangladesh which is expected to be 79.9 years in 2050 and 84.3 years in 2075.

In the next three decades, citizens are expected to live 20 years after their retirement, he mentioned.

Besides, the ageing population will continue to grow due to the expected increase in average life expectancy. It is high time the authorities introduce a universal pension scheme, he said.

The scheme was promised in the 2008 election manifesto of the ruling Awami League.

However, experts raised concerns as the minister's budget speech did not elaborate on how the pension scheme would be implemented.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, said, "There is no specific guideline about the universal pension scheme.

"The finance minister made a similar announcement earlier this year but surprisingly there is no discussion on its progress and implementation mechanism in his budget speech."

The eminent economist also said the finance ministry has not yet shared the draft of the act with experts for their opinions or suggestions.

"So, at this point, we cannot draw any conclusion about when this universal pension scheme will start and how it will be implemented," she said.