Rewritten Title: New ‘Beta’ Credit Scheme Aims to Boost Retiree Purchasing Power, Faces Scrutiny Over Terms
Article:
A new credit initiative, known as the “Beta” plan, has been formally agreed upon between Iran’s High Council of Retired Workers and the Bank Refah. The scheme is designed to provide a specialized credit card for retirees, modeled on similar programs for military pensioners, with the stated goal of enhancing their purchasing power and simplifying payments.
The plan, however, is being met with cautious optimism as a lack of detailed information and specific financial conditions have raised concerns among the Social Security retiree community.
The Beta Plan’s Framework
The core of the Beta plan involves providing retirees with access to installment-based purchasing power at specific chain stores partnered with Bank Refah, with a particular focus on buying domestically-produced home appliances.
According to announced conditions, eligible Social Security retirees can access a credit facility of up to 100 million tomans after a verification process. This credit can be used without the need for checks or a guarantor, to be repaid in 30 installments.
Key eligibility criteria include:
- Receiving one’s pension or salary through Bank Refah.
- Having active SMS banking and a dynamic password for transactions.
- Having no history of bounced checks or outstanding bank debt.
- Being between the ages of 18 and 77.
The age ceiling has notably excluded retirees over the age of 77 from the scheme’s benefits.
Concerns Over Financial Viability
While the plan’s intentions are focused on welfare, its practical implementation has prompted questions from retiree representatives. Maliheh Nasrollahi Azad, a board member of the Gilan Province Retirees Association, emphasized that the plan’s success hinges on its alignment with retirees’ actual financial capacity.
She pointed out that if the credit ceiling were raised to 300 million tomans, the resulting heavy installments would be unsustainable for retirees receiving a minimum pension. A monthly installment of 10 million tomans, for instance, would consume over half of a retiree’s minimal monthly income. Conversely, a low credit ceiling combined with a short repayment period may not adequately meet retirees’ needs for quality goods.
Calls for Clarity and Collaboration
Further compounding the uncertainty is a reported lack of detailed communication. Ali Dehghan Kia, head of the Tehran Social Security Retirees Association, highlighted the absence of precise information on the plan’s specifics. He has called for greater involvement of retiree associations in the execution of the Beta plan to ensure it is tailored to the living conditions of pensioners.
Dehghan Kia noted that even retirees with higher-tier pensions would face significant difficulties with substantial monthly repayments, underscoring the necessity for the plan’s implementation to be fundamentally based on retirees’ subsistence realities.
The Path Forward
Retirees and their representatives are advocating for more reasonable terms, suggesting proposals such as extended repayment periods and an increased credit ceiling. The overarching request is for the final details of the Beta plan to be designed around the economic capabilities of the retirees it aims to serve, ensuring it acts as a genuine step toward improving livelihoods rather than becoming an additional financial burden. Collaborative efforts between the plan’s executors and industrial bodies are seen as essential to address existing concerns and create more suitable conditions for the retiree community.