PLANNING for life after retirement is no longer a luxury but a necessity. As Bangladesh sees rising life expectancy and the expansion of its middle class, the central question has shifted: will today鈥檚 savings be enough for tomorrow? Retirement planning is not merely about setting money aside; it is about knowing how to save, when to save and how much to save, depending on future needs. Without basic financial literacy, even the most well-designed pension scheme risks falling short of its purpose.
In recent years, financial institutions have introduced a range of products aimed at securing people鈥檚 future. Banks have long-term deposit plans and pension-oriented savings schemes, while insurance companies offer annuities and pension-linked policies to create additional safety nets. The government鈥檚 National Pension Scheme, launched in 2023, is a historic step, opening the door for millions of workers 鈥� both formal and informal 鈥� to access structured retirement planning for the first time. Yet, despite these opportunities, awareness and participation remain limited. A pension system, however well-conceived, can only succeed if citizens understand how it works and why long-term saving matters. Here, financial literacy is the missing link.
The National Pension Scheme represents a bold attempt to extend financial security to a wide spectrum of citizens. Through four distinct modules 鈥� Progoti, Surokkha, Samata and Prabashi 鈥� it addresses the needs of private-sector employees, informal workers, low-income earners and expatriates. Citizens can voluntarily contribute during their working years and receive a monthly pension after 60. The process is digital, flexible and inclusive. But uptake so far has been modest, particularly outside urban centres. In rural areas, many remain unaware of the scheme, while others hesitate to commit regular savings because the concept of compounding, risk diversification, or long-term budgeting is unfamiliar.
Take, for example, a 30-year-old worker who begins contributing Tk1,000 per month. With compounding, this could ensure a modest yet steady income at retirement. But if one does not grasp the value of consistency, even small contributions feel like a burden in the present. Many are also unaware that contributions can be adjusted or paused in times of hardship. As a result, the very groups the scheme was designed to help, the vast informal workforce of vendors, transport workers, farmers, and artisans, risk being left behind.
Bangladesh鈥檚 challenge is not only to design pension frameworks, but to ensure the population is equipped to use them. Building a retirement-ready society begins with education. Encouragingly, financial literacy has been introduced into school curricula, teaching students the basics of saving, pensions and insurance. Early exposure to these ideas can normalise retirement planning as a part of life. But systemic change requires more than classroom lessons. Employers must also take responsibility by offering workplace literacy sessions and retirement planning workshops, particularly in the private sector where participation in the pension scheme can make a tangible difference.
Financial institutions, too, have a role that extends beyond selling products. Many banks already offer deposit pension schemes bundled with life or accident insurance benefits, providing a layered sense of security. Some also run literacy campaigns targeting young workers and students. Insurance companies have similarly expanded their offerings to include annuities and pension-linked life policies. These developments are significant, but they cannot replace public trust and basic knowledge. A retirement-ready nation depends on widespread understanding, not just product variety.
The media landscape, both traditional and digital, offers further avenues for outreach. Television discussions, community radio programmes, online explainers, and targeted campaigns can demystify retirement planning. The message must be simple and consistent: retirement is not only for the wealthy; it is for everyone who works today and hopes for dignity tomorrow. Bangladesh鈥檚 rapid adoption of digital banking and mobile financial services provides additional opportunities. With pension calculators, digital advisory tools, and mobile reminders, even those with limited access to traditional banks can participate. Fintech startups and microfinance institutions can work alongside the government to bring pensions to the grassroots in practical and accessible ways.
Yet, despite these tools and opportunities, the question of trust remains central. For decades, informal workers have been excluded from social security frameworks. Convincing them that the National Pension Scheme will serve them reliably requires transparency, consistent communication and a proven record of payouts in the years ahead. Financial literacy campaigns, if not paired with credibility, risk being dismissed as mere rhetoric.
Ultimately, retirement planning is a shared responsibility of individuals, institutions, employers and the state. The National Pension Scheme may well be a transformative initiative, but its promise will remain unfulfilled if participation is low and awareness shallow. Bangladesh cannot afford to see its ageing population enter retirement unprepared. Policymakers must invest as much effort into promoting financial literacy as they have in designing the pension framework itself.
A garment worker in Narayanganj, a small business owner in Rajshahi, or a migrant worker contributing from abroad, all deserve the chance to retire with dignity. With stronger awareness, digital tools, institutional commitment, and above all trust, retirement planning can become a norm rather than an exception. Only then will Bangladesh鈥檚 pension scheme be more than a policy, it will be a promise kept.
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Md Rashed Akter is the head of retail distribution division, financial literacy wing and chief bancassurance officer at Midland Bank PLC.
