Economic Survey 2018-2019 proposes to raise retirement age

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  1. The Economic Survey 2019 has suggested that the government should increase the retirement age from the current 60 years.The survey cited improved life expectancy for this move.
  2. The survey has said that India is set to witness a sharp slowdown in population growth over the next two decades.
  3. The total fertility rate which is a measure of how many children an average woman of reproductive age is likely to have in her lifetime will dip below the replacement 2.1 by 2021.
  4. Going with the trend,the Survey suggests that policy makers need to prepare for ageing which will need investments in health care as well as a plan for increasing the retirement age in a phased manner
  5. The Survey has suggested that a higher retirement age would also be crucial for the viability of the pension system which was in a nascent stage,apart from increasing female labour force participation in older age groups.
  6. Currently,the retirement age for most government employees is 60 years and most private companies have aligned their age of superannuation to the Centre and state governments.
  7. The survey also quoted the retirement age reforms being implemented or under consideration in countries like Germany (66 by 2023), Australia, US, UK and Japan (where increasing the retirement age to 70 is under consideration).