Old Age Poverty is a subject which more often than not, goes unnoticed. But this minor issue of our's is soon going to become one of the biggest problems of this country.
Is Old Age Poverty A National Concern?
It is estimated that currently 18 million elderly in India are living below the poverty line. Changes in the country, for example, expanded urbanization and modernisation, expanding cooperation of ladies in financial activities, the younger generation working outside their homes, and the increase in individualism and independence is prompting the breakdown of the joint family structure.
This has changed the way elders in India had conventionally lived over the years which led to an increase in the number of old people living alone or in small households, who now have to face economic challenges and poverty due to the lack of income. During the period, 1995-1996 to 2004-2005, the level of older living alone or with companion in India has recorded a 20% increment .
The Future of Indian Youth
Currently, India is a country whose major percentage is youth, which is ageing, and with the present conditions, the future seems dark. As per the estimates, 61% of the elderly in India will not have an income by 2050.
India has a massive youth population of 860 million which is currently working. In 33 years, 20% of the population will be retired. In India, merely 35% of the senior citizens are covered under the pension schemes. If the current scenario doesn't improve, we might be heading towards a crisis.
Challenges faced by the elderly
In today's day and age, the central government pays ₹200 per month to senior citizens (above the age of sixty) and living below the poverty line under the Indira Gandhi National Old Age Pension Scheme(IGNOAPS). The states are encouraged to increase the coverage. Currently, the states pay anything between ₹200 to ₹2000 as per public pensions. Things have to improve for the elderly living under the poverty line to come out of the poverty trap.
The debates about cancellation of Social-Security benefits and limiting medicare benefits are imposing further challenges in the already bad enough situation.
What can we do about it?
In order to have a safe and secure old age, steps need to be taken care now. Youth of India has newly understood the power and importance of investing their money, in order to increase their income. Similarly, education should be provided to individuals to plan for the future from today by investing in the right retirement funds which will give them support in the future.
Increasing the sources of income that provide revenue even after the retirement age is surpassed. It is very important for "Money to make more money", if your salary is just sitting in your bank account, taxation and inflation are slowly going to eat all the savings away. Investing the money in order to increase the sources of income is the need of the hour.
How can PensionBox help?
PensionBox helps you plan for your retirement while you are earning, into the right pension scheme. We provide planning assistance, savings tracking, and flexible assistance with the National Pension Scheme and other product investments. Sign Up and download the app on Android and on IOS.