Budget 2019: Govt likely to consider increasing retirement age

New Delhi, July 05: Retiring at 70 may be a reality. The Economic Survey has pressed for increasing the retirement age, raising expectations among government and private sector employees.

India's population is expected to grow under 0.5 per cent during 2031-41 due to the decline in fertility rate and an increase in life expectancy, according to the survey.

"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 Economic Survey for 2018-19, tabled in Parliament by Finance Minister Nirmala Sitharaman Thursday, said. The survey pointed out that this will also help plan in advance for pensions and other retirement provisions.

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Given that life expectancy for both males and females in India is likely to continue rising, increasing the retirement age for both men and women going forward could be considered in line with the experience of other countries, it added.

Due to ageing population and increasing pressure on pension funding, many countries have begun raising the pensionable retirement age.