Menu Close

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

The EPFO has almost 60 million subscribers and it has a cumulative pension and provident fund corpus of more than Rs 12 trillion

Topics
EPFO | retirement age | pension funds

BS Web Team  |  New Delhi 

Last Updated at September 5, 2022 08:50 IST

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 in the nations. The Employees’ Provident Fund Organisation (EPFO), in its Vision 2047 document, has vouched for increasing the 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 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 would mean deposit of higher quantum pensions for longer duration with and other in the country and will help offset inflation.”

The 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 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 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

First Published: Mon, September 05 2022. 08:50 IST