Pension has emerged as an important issue of political debate in the recent elections. There are some special indications about pension in the General Budget 2024-25 as well. It has been indirectly indicated that the government has no intention of implementing the old pension scheme.
Due to the victory of BJP in the recently concluded Lok Sabha elections and the state elections before that, the government is no longer on the back foot on the issue of pension. This is the reason why it has talked about making some changes in the new pension scheme itself. Finance Minister Nirmala Sitharaman has said that the committee formed to review NPS has made a lot of progress in its work.
A constructive approach has also been suggested by the central government employees. Now a solution will be found which will address the relevant issues and at the same time maintain fiscal prudence to protect the interests of the general public.
Apart from this, the Finance Minister has announced the launch of NPS-Vatsya scheme based on contributions by parents for minor children. This scheme can be easily converted into a normal NPS account after attaining the age of majority. This decision of the government is an attempt to find a practical solution to the current debate regarding pension.
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Currently, people usually open an account under the New Pension Scheme (NPS) after joining a job. But under NPS-Vatsalya, efforts will be made to save money for pension in old age right from childhood. Experts say that this is a preparation for India after the year 2040.
According to a recently released report, the number of elderly people in India will start increasing gradually after the year 2040. In such a situation, the facility of financial resources for the elderly can be arranged through the above step.
