DefinePK

Abstract

India is going through a rapid demographic change, with an increasing older population due to rising life expectancy and lower fertility rates. This transformation poses enormous economic concerns, particularly in pension systems, social security, healthcare, and labor market dynamics. By 2050, the proportion of India's population aged 60 and more is predicted to rise from 10% to 20%, putting a pressure on the country's present social assistance system. While the aging population offers issues, it also provides opportunity for change and innovation, particularly in the areas of developing sustainable pension systems, enhancing healthcare for the elderly, and resolving unemployment concerns. This research investigates the economic implications of an aging population in India, with a focus on the effectiveness and sustainability of the country's pension systems, social security mechanisms, healthcare infrastructure, and employment policies. It reviews the current state of India's pension system, which largely excludes informal sector workers, and the strain on social security programs that are ill-equipped to meet the needs of an expanding elderly population. This research offers a set of policy recommendations aimed at expanding pension coverage, improving elder care, and addressing unemployment. The key recommendations include extending pension schemes to informal sector workers, investing in healthcare infrastructure, and creating inclusive labor markets that provide opportunities for both older workers and youth. By adopting these reforms, India can address the economy.
Key words: Aging Population, Social Security, Economy, Pension, India, Employment.