The retirement age in India typically ranges from 60 to 65, depending on whether one works in the government or private sector. China has been gradually raising its retirement age, leading to demographic and economic concerns
In India, the retirement age varies depending on whether one is employed in the government or private sector, and can be further influenced by the specific policies of individual companies. Traditionally, the retirement age for central and state government employees is 60 years. However, in certain government sectors like higher education, defense, or judicial roles, the retirement age may be extended. For instance, professors and judges often retire at 65, and defense personnel may have an earlier retirement age depending on their rank and length of service. In Public Sector Undertakings (PSUs), the retirement age is generally 60
However, certain categories like scientists or medical professionals may have extended service periods. Some state governments, notably Tamil Nadu and Madhya Pradesh, have revised policies to increase the retirement age to 62, aiming to manage staff shortages and demographic shifts. In the private sector, the retirement age is more flexible, ranging from 58 to 65 years, depending on company policies. However, some companies may offer employees Voluntary Retirement Schemes (VRS), typically after they complete a certain number of years of service, often upon reaching 50. Retirement planning in India has seen a shift in recent years due to increasing life expectancy and evolving economic conditions
Many professionals choose to work beyond the traditional retirement age, through consulting or part-time roles, particularly in urban areas. Additionally, the government has introduced retirement schemes like the Employees' Provident Fund (EPF) and the National Pension System (NPS). These schemes offer varying benefits depending on the employment sector and contribution levels. China, our neighboring nation, has decided to gradually increase the retirement age for employees. While male employees will retire at 63, women will have to work until the age of 58. This decision by China is considered significant for the welfare of employees. Previously, the retirement age for women was 55 and for men it was 60. In urban areas, men can retire at the age of 60. There is also a plan to increase the working period to address the declining workforce, weakening economy, and pension fund shortage for senior citizens in China
By 2030, the government plans to increase the minimum tenure for pension from 15 years to 20 years. However, there is significant opposition to these proposed changes on social media. Citizens believe that this will increase their working period and delay retirement, while youth unemployment in the country is already high. China's growing elderly population has become another major concern. Currently, it is around 20% of the population, but projections indicate it will rise to 30% by 2030-2035 and 40% by 2050. The Chinese Academy of Social Sciences warned in 2019 that state pension funds would be depleted by 2035. Furthermore, the pandemic has led to a decline in the workforce and the potential exhaustion of local government funds
The job market situation is also challenging. In July, the unemployment rate for youth aged 16-24 was 17.1%, and for those aged 25-29, it was 6.5%. Complaints about age discrimination in jobs for those over 35 have also increased. Last year, seniors in several major cities protested cuts to their medical benefits. To address demographic and economic challenges, the Chinese government plans to raise the retirement age and extend the working period for pensions. However, this decision has caused dissatisfaction and concern among citizens, as they worry about their financial and job security
subscribe to Asianet Newsable WhatsApp channel by clicking here.