Retirement age to be raised owing to higher life expectancy: Economic Survey

July 4: Very soon the long cherished dream of the increase in the retirement age of government employees may soon become a reality. Economic Survey of 2019 has pointed out that “an increase in retirement age is perhaps inevitable”. India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy, the survey stated. This Economic Survey for 2018-19 was tabled in Parliament by Finance Minister Nirmala Sitharaman on Thursday.

“Since an increase in the retirement age is perhaps inevitable, it may be worthwhile signaling this change well in advance – perhaps a decade before the anticipated shift – so that the workforce can be prepared for it,” the survey said. Given that life expectancy for both males and females in India is likely to continue rising, increasing the retirement age for both men and women going forward could be considered in line with the experience of other countries, it added.

The economic survey highlighted that these changes in India’s demography will also have implications such as the proportion of elementary school-going children will witness significant declines, fall in hospital beds and increase in retirement age. It added that contrary to popular perception, many states need to pay greater attention to consolidating/merging schools to make them viable rather than building new ones. The survey said policy makers need to prepare for ageing.

The Department of Economic Affairs, Finance Ministry of India presents the Economic Survey in the parliament every year, just before the Union Budget.It is prepared under the guidance of the Chief Economic Adviser, Finance Ministry. It is the ministry’s view on the annual economic development of the country. A flagship annual document of the Ministry of Finance, Government of India, Economic Survey reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. This document is presented to both houses of Parliament during the Budget Session.