In order to implement a social protection program that is more inclusive, the Ministry of Finance intends to review the current pension system. In order to introduce the new scheme in the 13th Plan, the ministry will work with important agencies such as RMA the Cabinet Secretariat, and NPPF to review the NPPF’s legal framework. Under the government’s Special Service Initiative, Prime Minister Tshering Tobgay declared last year that Nu 2 billion had been set aside for a social protection program to guarantee financial stability for all Bhutanese citizens, particularly the elderly. The NPPF currently covers less than 9% of Bhutan’s workforce, which includes civil servants, workers in corporations, state-owned businesses, and the armed forces.
According to a 2017 NSB report, a sizable section of Bhutan’s senior population struggles financially. Financial hardship affects roughly 63% of senior citizens, with 15% of them suffering from debt. Thirty percent of older Bhutanese live in substandard housing, twenty-six percent report food insecurity, and nearly twenty-two percent do not own land. The government introduced the National Policy for Senior Citizens in 2023 to safeguard senior citizens’ rights and encourage healthy aging in response to the burgeoning senior population. The policy suggests expanding coverage through a variety of pension products, including contributory and non-contributory schemes, and implementing old-age allowances.
