Will all of the nation's citizens be eligible for UPS?
Though the objective of the scheme is very positive, its implementation will not be easy. The first challenge is participation. Since the scheme is voluntary, it means that people will join it willingly. Now, if people from the lower income groups, whose daily income is barely enough to make ends meet, do not participate, it will affect the success of the scheme. It may be difficult for people to join this scheme without any compulsion.
The second big challenge is the government contribution. The government also contributes to existing pension schemes, such as EPFO and PM-SYM. But under UPS, there will be no government contribution. This may reduce the attractiveness of the scheme, as many people whose income is irregular may not be willing to put their savings in this scheme.
The third challenge is administrative integration. Currently, there are many pension schemes in India, in which different governments and institutions have a role. Bringing all these schemes under one framework and coordinating them to work properly will be a big challenge.
Finally, the adequacy of pension also raises questions. If this scheme does not have a fixed minimum pension guarantee, it may not be enough for those who do not already have any big savings. So, the objective of this scheme is very good, but the government will have to work very hard to make it successful. If this scheme is implemented properly and people's participation is ensured, then it can prove to be a game-changer. But now it remains to be seen how the government will deal with these challenges.
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