The retirement age has been fixed at 58 or 60 in most government jobs, banks, insurance and many other sectors. In the services some retire even at 55 or less. The good part is that for many such retirees, they get pensions. Given increasing longevity, any healthy person now needs to look at 25-30 years of retired life after working for 30-35 years. As one agers, the biggest tension is how to meet medical expenses.
The clamour for banks to reduce interest rates on loans will persist. When banks do reduce lending rates, they will also drop savings rates. Unfortunately savers do not have the clout to demand better rates, whereas borrowers do. So while we will live longer, the funds available to ensure a comfortable lifestyle and returns on these savings will go down.
There is a great deal of discussions on our “young” population. Demographic dividend. For sure the young have aspirations and they need encouragement and jobs. What the government is largely ignoring is the increasing number of elderly who will need support.
Many European governments and other countries have raised retirement age to 65 years. It is time India also thinks on those lines. Bureaucrats, especially those in the higher levels, wrangle for themselves cosy post-retirement sinecures, and they do not care to think about the majority population of elderly.