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Insurance Chronicle Magazine:
Need for Old Age Security in India
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Since life expectancy is going up in India and by 2025, 13% of our population would be in the age bracket 60 and above, it is time we give a thought to some provisions for the senior citizens. Otherwise, this sizable populace faces the risk of being considered a liability and a burden. As the New Pension Scheme is to be extended to the general public, this is an opportunity to inculcate the habit of saving for pension among the youngsters.

 
 

As per demographic studies, India will be having 13% of its population above the age of 60 by the year 2025. Since we have a population of nearly 116 crores as on date and going by the rate of 2.5% growth every year and taking deaths into account, the actual above 60 age group can easily be in the region of 15 crores. The present life expectancy is 64 for males and 67 for females and will be further improving by 4-5 years in view of the advancements in medical science.

Again there is the issue of gender imbalance—there are only 927 women as against 1,000 men in India. This is only the national average. In some states in the Northeast, it is still worse. Women of the age of 60 to 80 are more in every state as their longevity is high. At the same time, the illiteracy level among women is high, adding to the problems.

As per the National Policy for Older Persons, Ministry of Social Justice and Empowerment, around 33% of our population is below the poverty line. Again, out of them, 30% are people aged 60 and above, 50% are elderly people who are fully dependent on others, while 20% are partially dependent. Women are more dependent, given their lower literacy rate and higher incidence of widowhood. A majority of these people belong to the socially weaker sections and come under the unorganized labor segment.

 
 

Insurance Chronicle Magazine, Old Age Security in India, Demographic Studies, National Policy, Psychological Problem, National Policy, Public Provident Fund, PPF, Pension Fund Regulatory and Development Authority, PFRDA, Old Age Social and Income Security, OASIS, Invest India Economic Foundation, IIEF, Non-Governmental Organizations, Tax Concessions.