Can Bangladesh develop a national pension system?
A future for Bangladesh’s senior citizens Bangladesh is one of the most densely populated countries in the world, and the eighth-largest by population. The number of people over 60 years of age has been projected to increase from about 9.8 million (6.5% of total population) to 18.1 million (10% of total population) by 2026 and 44.1 million people (20.2% of total population) by 2051 in Bangladesh.
The average life expectancy of a Bangladeshi is now around 70 years, which will result in an increased dependency ratio and declining potential support ratio. Without adequate savings or contributory pension schemes, most senior citizens will be heavily dependent on society.
Pension is a form of provision of annuities for aged people. First implemented in France in the 19th century, the pension system was introduced in the UK in 1834 and in Germany in 1873. Pension schemes for elderly people in this region were first adopted in 1924, but it was only for the government servants.
At present, there is no formal pension system in Bangladesh at a national scale, except for only the employees in government service (civil and military). The number of government servants is around 1.4 million, which accounts for only 5% of the total employed population.
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