India’s demographic transition is no longer a future concern; it is an unfolding reality. By 2035, nearly 140 million Indians will be over the age of 60. By mid-century, that figure will approach 300 million—close to one-fifth of the population. For policymakers, this is not simply a social statistic. It is a structural variable that will shape labour markets, public finances, institutional capacity, and social cohesion for decades.
Retirement policy sits at the centre of this transition. Traditionally, retirement in India has been treated as an administrative endpoint: a fixed age, a pension calculation, and an assumption of withdrawal from productive life. That model served a younger society well. In a longer-living India, it requires recalibration—not to extend working lives indiscriminately, but to enable choice, flexibility, and continued contribution where both the individual and the system benefit.
The intent already exists. A nationwide Agewell Foundation survey of 10,000 Indians aged 55 and above found that more than 73 percent wish to work after retirement. Their motivations extend beyond income to include dignity, autonomy, and purpose. Yet only about 23 percent are able to do so. For policymakers, this gap represents untapped human capital rather than policy failure—and therefore an opportunity for design.
Several constraints are already well understood. Older workers point to limited access to suitable roles, gaps in digital skills, and mobility-related challenges. These are not intractable problems. Targeted interventions—short-cycle digital training, age-friendly workplace standards, and flexible work formats—can unlock participation at relatively low fiscal cost. Existing platforms, such as the government’s SACRED portal, provide a starting point; their impact can be multiplied through better integration with ministries, PSUs, universities, and state governments.
Income security remains a parallel priority. While India’s pension reforms have improved long-term sustainability, coverage remains uneven. Only a small share of the workforce is fully protected by formal pension arrangements. As life expectancy at age 65 approaches 80 years, the duration of retirement lengthens. Policymakers can strengthen outcomes by improving pension portability, encouraging voluntary savings, and simplifying access to contributory schemes—particularly for workers transitioning between formal and informal employment.
Labour-market data suggest that retirement is already more fluid than policy frameworks assume. The Longitudinal Ageing Study in India shows that roughly 40 percent of individuals over 60 are working or seeking work. Much of this engagement occurs informally. Formalising pathways for part-time, project-based, and advisory roles can shift this activity into safer, more productive channels while preserving flexibility.
International experience offers useful lessons. OECD countries increasingly rely on phased retirement, public-interest fellowships, and senior expert pools to retain institutional knowledge without blocking advancement. These models reduce skill shortages, support mentoring, and improve continuity in complex systems. India’s own experience in select sectors—such as aviation, where retirement ages have been extended to address talent constraints—demonstrates that calibrated flexibility can work.
For senior public servants, structured post-retirement engagement offers particular value. The accumulation of experience in administration, security, regulation, and public finance represents a strategic asset. Time-bound consultancies, mentoring programmes, policy labs, and teaching assignments can redeploy this expertise where it is most needed, without creating parallel power structures or permanent roles.
Crucially, redesigning retirement is not about compelling longer work. It is about enabling informed choice. A system that allows individuals to step back, scale down, or re-engage—depending on health, skills, and preference—is more resilient than one built around a single exit point. Such flexibility also aligns with changing family structures, urbanisation, and increased longevity.
From a governance perspective, the gains are multidimensional. Continued engagement supports mental and physical well-being among older citizens, reduces dependency ratios, strengthens intergenerational learning, and preserves institutional memory. Economically, it expands the effective labour pool at a time when skill shortages are emerging in key sectors.
The policy agenda is therefore clear. Integrate retirement planning into workforce strategy. Incentivise employers to design age-inclusive roles. Invest in lifelong learning and digital inclusion. Align pension reform with labour-market flexibility. Measure success not only in fiscal terms, but in participation, well-being, and institutional continuity.
Retirement in India need not mark the end of contribution. Properly designed, it can function as a second base camp—a moment to reorient experience toward new forms of public value. For policymakers, the task is not to reinvent work, but to ensure that longer lives remain connected to purpose, productivity, and national capacity.
(The above content is written by O.P. Singh, Former DGP, Haryana)
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