Bangladesh will launch a universal pension scheme within the next six to 12 months, with contributors potentially drawing 64,000 taka (US$697) monthly for 20 years once they turn 60, Finance Minister Mustafa Kamal says, according to a report in local English language newspaper The Daily Star.
The scheme will be open to all Bangladeshis between 18 and 50 years of age. The minimum monthly contribution is 100 taka.
Mustafa says anyone contributing 1,000 taka monthly from the age of 18 will get 64,000 taka a month when they are 60 years old.
“They will pay a fixed amount and will be able to withdraw their monthly pension once they reach the age of 60. They will enjoy the facility until they are 80,” he is quoted as saying in the report recently.
Mustafa says the money will be invested in treasury bills, bonds and profit-making infrastructure development projects.
The report does not say why the government is launching the scheme but it’s likely a move to help shore up retirement savings as life expectancy in the small South Asian country grows.
The World Bank projects average life expectancy in Bangladesh to increase from 73 years currently to 80 years by 2050.