AS pensionable public jobs have reduced significantly during the last 20 years, private-sector banks and insurance firms need to jump in to start large-scale pension schemes that can ensure a dignified retirement life for those retiring without guaranteed government pension schemes.

After 60 years, regular employment income usually ends, and health needs increase. A person works throughout his life and carries family responsibilities. Life in retirement should be about dignity and honour.

Both banks and insurance firms already manage long-term money through invest-ments. All people, whether employed at an organisation or self-employed, or those with no formal employment source, should be duly documented and offered pension schemes through favourable policies.

The different ways in which private insurance schemes can work are through employer-sponsored pension schemes and occupational pension schemes that are mandatory.

Monthly contribution from people should be reasonable, and the lion’s share should come from the banks/insurance firms. The pension schemes run by banks or insurance companies must be Shariah-compliant in both structure and investment.

By expanding pension schemes, we can safeguard the wellbeing of the elderly.

Aleem Ahmed
Islamabad

Published in Dawn, March 5th, 2026