The Employees’ Provident Fund Organisation (EPFO) sees a case for substantially in increasing the retirement age in India and aligning it with life expectancy to ensure the viability of the pension system in the country and provide adequate retirement benefits.
Therefore, The central government can soon give good news to the employees. The retirement age and pension amount of employees can be increased. This proposal has been issued by the Economic Advisory Committee to the Prime Minister. In this, there has been talk of increasing the working age limit of people in the country.
Along with this, the Economic Advisory Committee of the PM has said that along with increasing the retirement age in the country, Universal Pension System should also be started.
According to the Central EPFO Commissioner said, In the vision document of 2047, EPFO is of the view that the retirement age will go up as the life expectancy in India has increased. It could be 65 years or more.
If the retirement age is 65 or more, then the pension amount will increase and also the contribution will go up, he further said.
Members, who want to contribute towards EPFO even after retirement, can contribute it till the age of 65. But there will be no pension benefits on contribution after the retirement.
He said that increasing the size of the pension fund augurs well for the economy as the pension fund could be used to contribute in the economy.
According to the report, under this suggestion, a minimum pension of Rs 2000 should be given to the employees every month. Let us tell you that the Economic Advisory Committee has recommended better arrangements for the safety of senior citizens in the country.
As per this report, there is a dire need to raise the retirement age if the working age population is to increase. This can be done to reduce the pressure on the social security system. The report also talks about skill development for persons above 50 years of age.
It has been said in the report that the central and state governments should formulate such policies so that skill development can be done. This effort should also include those living in the unorganized sector, remote areas, refugees, migrants who do not have the means to get training, but they must be trained.
It is worth noting that according to the World Population Prospectus 2019, there will be around 32 crore senior citizens in India by the year 2050. That is, about 19.5 percent of the country’s population will go into the category of retired. In the year 2019, about 10 percent of India’s population or 140 million people are in the category of senior citizens.