The retirement age in India is 60 years. This is quite less when compared to other developed economies like the U.K or Germany. For example, the retirement age in the U.K is 66 and in Germany it is 65. As India moves towards being the 3rd largest economy in the world, there is an urgent need to reassess how we look at retirement.

India has one of the youngest average populations in the world but this is coupled with the fact that India faces some of the highest youth unemployment rates. Some of this is attributed to the lack of ready-made skills that the market requires. This can be ascribed to the state of the markets currently and also to the structure of the Indian educational system.

The markets currently are in an extremely saturated state due to the recessionary trends in all major western economies. A situation like this warrants tight hiring processes with specific qualifications and requirements. Firms across India feel that graduates here do not qualify with tailor made skills required for jobs. There is an immense amount of training and exposure needed to bring such graduates up to speed. These trends are a concerning sign as it does raise the question “how optimally is India using its young labor resources ?”

In this aspect, increasing the retirement age can prove extremely beneficial. Senior experienced employees can help fill this void by both being productive workers and by training the younger recruits. At the same time, younger employees will gain more time for exposure and training in the skills they need. This of course needs to be complimented with other policies in the educational sector and the training spheres of private companies.

It is time we realize that India is missing out on one of its greatest mines of knowledge, expertise and skill. That is truly unfortunate.

–Tejas Chhabra, Aspiring Economist