Savings Schemes, Second-life Career Options: How Budget 2021 Can Help Senior Citizens Post Retirement In India, family continues...

Savings Schemes, Second-life Career Options: How Budget 2021 Can Help Senior Citizens Post Retirement

In India, family continues to be an important supporting institution for the elderly. Seniors, having spent most of their working life saving for their children’s education, marriage, and housing, hardly pay attention to their retirement planning. In the traditional Indian family, the sacred duty of caring for the elderly parents’ rests with the children.

While this turns out favorably in some cases, a large majority of elders in the country face a tough time finding the resources for their post-retirement living expenses. In developed economies such as the U.S., Canada and many European countries, a major chunk of the retirement income comes from social security while in an emerging market like India, people rely on their personal savings for more than 46 percent of their retirement income.

India does not have a universal pension program for its 1.3 billion people. Our pension system currently ranks 32 out of 37 countries on the Global Pension System Ranking. This clearly outlines the inadequacy and the critical need to streamline and strengthen the pension programs in the country. The Union Budget 2021-22, which will be presented against the backdrop of the ongoing COVID-19 pandemic, should take into consideration the financial needs of India’s growing senior populations and recommend policy measures to help them have income security in their silver years.

Here are four key areas that the Budget could focus on to build a strong senior care ecosystem in India