EPFO calls for increasing retirement age to ease pressure on pension funds

By 2047, India is expected to become an ageing society as around 140 million people are estimated to be above the age of 60 years. This can put immense pressure on the pension funds in the nations. The Employees’ Provident Fund Organisation (EPFO), in its Vision 2047 document, has vouched for increasing the retirement age in the nation, and aligning it with life expectancy to ensure the viability of the pension system in India and provide adequate retirement benefits, reported The Economic Times on Monday.

The EPFO in its document said, “Increasing the retirement age, going forward, could be considered in line with the experience of other countries and will be key to the viability of pension systems.”

Explaining the suggestion by the EPFO, a senior government official told ET, “Raising the retirement age would mean deposit of higher quantum pensions for longer duration with EPFO and other pension funds in the country and will help offset inflation.”

The EPFO has almost 60 million subscribers and it has a cumulative pension and provident fund corpus of more than Rs 12 trillion. According to ET, the EPFO will include the Pension Fund Regulatory and Development Authority (PFRDA) in its plan. The PFRDA administers the National Pension Scheme of the central government.

According to the National Statistical Office (NSO)’s Elderly in India 2021 report, the nation’s elderly population of 60 and above is expected to touch 194 million in 2031 from 138 million in 2021, a 41 per cent increase, lifted by a higher population and rise in life expectancy for both males and females

“Consequently, the number of people requiring old age income and health security will go up exponentially,” the EPFO said.

While in India the retirement age varies from 58 years to 65, across the European Union, it is 65 years. Meanwhile, in Denmark, Italy, and Greece, the retirement age is 67 years and in the US, it is 66 years, as most of these nations have an ageing population.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

supply hyperlink

What do you think?

Written by admin

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

‘When I Left Test Captaincy, Only MS Dhoni Messaged Me’: Virat Kohli

India vs Pakistan – “Had Hunch Nawaz Would…”: Babar Azam After Victory vs India