When Bangladesh launched its Universal Pension Scheme, it was projected as a quiet social revolution – a landmark social security net for a country where old-age security has long depended on family support and limited personal savings.
The idea was simple: citizens would build their own retirement fund through regular deposits and receive a tax-free monthly income after turning 60. But three years into the initiative, that ambitious vision is facing a major challenge – convincing people to save for their own future.
Despite a series of government incentives, including a new provision allowing retirees to withdraw up to 30 per cent of their accumulated savings as a lump sum after retirement, public response remains weak.
Official figures show that total registered subscribers stood at 3,79,012 in mid-August.
The number was 3,77,524 in the last week of April, meaning only around 1,500 people joined the scheme in three and a half months. More worrying for officials, a large number of registered subscribers are not continuing with their monthly instalments.
On paper, the scheme offers an attractive financial proposition. Open to citizens aged between 18 and 50, it rewards long-term saving with higher pension benefits.
An 18-year-old who deposits Tk1,000 every month can receive a monthly pension of more than Tk34,000 after turning 60. In contrast, a person who starts saving Tk10,000 a month at the age of 50 would receive slightly over Tk15,000.
Among the four schemes, Pragati, designed for private sector employees without employer-sponsored pensions, has drawn the highest participation. The Probash scheme, aimed at expatriate Bangladeshis, has attracted the lowest number of subscribers.
But the key question remains: why are people reluctant to join?
Experts point to weak awareness campaigns, uncertainty over the scheme’s structure and concerns about the management of the pension fund.
“Even after more than three years, the scheme has failed to gain the momentum that was expected,” said Professor Shahadat Hossain Siddiquee of the Department of Economics at the University of Dhaka.
He said a long-term pension system requires a clear institutional roadmap explaining how different social and economic groups will be brought under the scheme and where compulsory participation may be necessary.
“Most importantly, people need confidence that their lifetime savings are secure,” he added.
Officials at the National Pension Authority acknowledge that concerns over fund security remain one of the biggest barriers to wider participation.
Shaikh Qamrul Hasan, Member (Administration and Finance) of the authority, said subscribers’ deposits are kept safely in commercial banks and the government is not using the funds for any other purpose.
“Participation growth has been very slow in recent months,” he said, stressing the need for stronger awareness campaigns and clearer communication to build public confidence.
To address the trust gap, the authority is expanding promotional activities through newspaper advertisements, new television commercials and awareness programmes at the grassroots level. Campaigns have already been held in Chuadanga and Madaripur, while a ‘Pension Awareness Week’ is planned in Dhaka and elsewhere in September.
The government has set a target of bringing at least one member from four crore families under the pension system by 2030. But with participation growing at the current pace, officials themselves fear the goal may remain out of reach.
Adding to the uncertainty, the profit rate for the new financial year has yet to be announced, pending approval from the pension authority’s board.
Until the government can transform policy promises into public confidence, Bangladesh’s pension dream risks remaining an ambitious idea waiting for wider acceptance.
