Life expectancy has improved majorly, especially throughout the 19th and early 20th centuries, largely due to the advancement in housing and education, as well as better sanitation which had previously been the cause of mid-life mortality because of infections and disease. This means on a whole, that people are now living longer, and therefore the retirement age in many countries has begun to rise.
In India, it is expected that the retirement age could reach 70 by (a ten year increase from what it is today), due to the fertility rate declining while life expectancy has risen. The population rate is predicted to increase by just 0.5% between 2031-2041 which is a fraction less than the growth rate between 2021-2031. This is partially because women are choosing to have fewer children, according to the Registrar General of India (RGI) for 2017. The Economic Survey for 2018-19 that was tabled in Parliament by Finance Minister Nirmala Sitharaman, said,
“Since an increase in the retirement age is perhaps inevitable, it may be worthwhile signalling this change well in advance – perhaps a decade before the anticipated shift – so that the workforce can be prepared for it,”
The retirement age in the UK and US is 65 and 66, with expectations for them to rise while life expectancy is also increasing. By 2026-2028 the UK state pension age is expected to increase to 67 years.
Originally created and published by Economic Times