How India Retires?

The percentage share of people aged above 60 years in India is only 8.6%, but they constitute more than 10.4 crore persons. That’s almost three times the total population of Canada.

Around one in 10 persons aged 60 years and above in India have a pension or rent income. Once again, urban senior folk are better off. Those receiving a pension or rent incomes constitute more than 17% of the population aged 60 years and above. The figure is less than 9% in rural areas. Among those who have post-retirement incomes, the gender gap is much higher in urban areas than rural areas. According to a survey conducted by the National Sample Survey Organisation (NSSO) in 2004, less than 20% of aged men and around half of aged women were living with their children.

Not everyone above 60 retires. Census 2011 data shows that for every five persons aged above 60 years, more than two are still working. There is a significant gender gap on this count. For males, the ratio is more than three in five, while it is a little over one in five for females. There is also a sizeable difference in the status of senior citizens in rural and urban areas. In rural areas, 47% of those aged above 60 years are still working. Its 28% in urban India.

At the all-India level, more than two in every five persons aged above 60 years belong to the dependants and household workers category. These ratios vary drastically across gender: less than one in five for men, and around two in three for women. Urban areas have a slightly higher prevalence of dependency than rural ones. The ratio increases with an increase in age. While a lot more data is required to ascertain how economically secure our senior citizens are, it can be safely said that very few among them have access to a remunerative retired life. 

Whether you are below 60 years of age of above, it is important that you plan your retirement so that you can enjoy financial freedom in your old age. HDFC Life has a lot of pension and retirement plans as per your risk appetite. The best thing to do is start now.

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