International Day of Older Persons and India’s Grey Economy

The United Nations have declared 1st Oct as International Day of Older Persons. While celebrations are in order, to validate the decades of hard work our elders have put in to pave the way for us, there is also cause for concern. Looking at current trajectories as per the United Nations Population division, the percentage of the Indian populace that are above 60, will more than double within the next 30 years, nearing almost 30% of India’s population by 2050. This is alarming as due to the sheer numbers within the Indian population, this would mean around 300 million senior citizens in little over 25 years. This sharp increase has been attributed to factors such as increase in availability of contraceptives, family planning, declining infant mortality rate, and improved longevity due to advancements in modern medicine.??

While the ramifications of the age demographic shift won't be felt immediately, with time the implications for the Indian economy will be dire. The country will need to make investments pertaining to elderly healthcare, social services, and old age care infrastructure. The 'grey economy' must be developed to ensure those above 60 can contribute meaningfully to the growth of the economy, otherwise there will be a significant portion of the population which doesn't contribute to the country's economic development.??

This is particularly important as it was noted that India's population is ageing quicker than the rate they are developing. The rate of poverty is higher amongst elders with most of them completely dependent on others for their livelihood. India's family structure is evolving, meaning the elderly may not have the joint family structure to rely on in their retirement. This is a precarious predicament for many elder persons as 90% of India’s workforce is in the informal sector with no health benefits, social security, or pension to rely on.?

So What Next???

While other countries have attempted to solve the ageing crisis by increasing the age of retirement, this is only fruitful for developed countries. India is still developing and while the population is due to age rapidly, at present youth form roughly 30% of the population and in the midst of rampant unemployment, increasing the retirement age would mean they have even fewer jobs. The way forward for India involves a combination of anticipating a surge in elderly healthcare along with providing new jobs for the elderly to contribute to the economy while letting the youth drive development in tandem. WisdomCircle attempts to address these concerns by providing retirees with such opportunities to allow them to contribute to the growth of our economy.?