Why India’s increasing elderly population faces a dire future

India is currently benefiting from a large working-age population. However, by 2050, the elderly will make up more than 20% of the total population. The UN Population Fund’s India Ageing Report from 2023 predicts that by 2046, there will be more elderly people than children aged 0 to 15. This presents the country with a situation where a higher proportion of the population would be dependent, compared to the working-age population.

Social security in the form of pensions will be key to financial security of India’s elderly, experts say, but an IndiaSpend analysis of pension schemes for informal workers, farmers, traders and the self-employed shows low uptake and lower government spending than envisaged.

Further, those hired by the military under the Agniveer scheme receive no pension.

An Agniveer is entitled to leaves, uniform, pay and allowances during the service period of four years, and a “Seva Nidhi” package – money deposited from their pay during service, amounting to Rs 5.02 lakh, matched by the government, along with interest – which will help them find employment in other sectors. But they are not eligible for any kind of pension or gratuity, Ex-Servicemen Contributory Health Scheme, Canteen Stores Department facilities, Ex Serviceman status and other related benefits.

Meanwhile, a Member of the Legislative Assembly…

Read more