As per United Nations Population Fund (UNFPA) and Help Age International, India’s population is likely going to increase by 60% between 2000 and 2050 and people with age 60+ is going to increase by 360%. They also said, Indian government should start framing policies now else its consequences are likely to take it by surprise. Complete report present in http://www.gktoday.in/indias-elderly-population-some-fundamentals/ .
In a report “Aging Report” by United Nations Population Fund (UNFPA) and Help Age International, below are the major challenges of population aging:
- Financial security: While many developed countries and some emerging economies are challenged with an aging workforce and ensuring the sustainability of pension systems, most developing countries have to establish their systems now when the challenge is less acute and when the fiscal space available for social policies is increasing as a consequence of the “demographic dividend”.
- Health: Health is another major concern for older persons. The demographic transition to an aging population, accompanied by an epidemiological transition from the predominance of infectious diseases to non communicable diseases, is associated with an increasing demand for health care and long-term care. Although not an inevitable outcome of growing old, the number of older people affected by mental health problems are increasing due to population aging. Their management has become an increasing concern for both developing and developed countries.
Present Financial Security in India:
- As per rating agency CRISIL only 8 percent of employees who retire from the private sector in India are covered by pensions while 92 percent of private employees have no income security.
- As per ‘Retirement Survey’ by Reliance Capital Asset Management (RCAM) conducted online pan India in collaboration with IMRB International, India’s per capita retirement and pension assets as a percentage of gross domestic product (GDP) is among the lowest compared to other economies like Germany, USA and Brazil. India has only 15.1% of retirement assets (as a percentage of GDP) as compared to 21% in Germany, 41% in Brazil,78.9% in USA.
Present Health Security in India:
- As per Health Infrastructure report 2013, India has Rural 15398 Gov Hospitals with 196182 beds, Urban 4419 Gov hospitals with 432526 beds. Where average population served per Gov Hospital is 61744 and average population served per Gov Hospital Bed is 1946.
- Awareness about health policies was pretty low among Indians and many still have the misconception that health insurance is meant only for the elderly, according to a survey by Max Bupa Health Insurance.
- According to world health organization India has 112 ranking in health all over the world.
As per the above points, by 2050 Indian Government has to come up with various schemes to solve Financial and Health Security issues, otherwise it can lead to a major problem for most of the Indians. So, should we wait till 2050 for government to make the policies? Government alone can not fix these issues; we also must help our self and government to handle these issues together. Remember we must accept that one day we are going to be 60+.
So what should we do?
1. We should make a financial plan, which will take care of our responsibilities and retirement; this will solve our future Financial Security.
2. In the financial plan, we also should take care about Health Insurance w.r.t the future cost. Since in India Medical expenses are increasing at the rate of 10% every year. Which means today’s Rs 1L medical cost will become around 28L by 2050.
3. Since we are aware of Financial Planning importance, it is our duty also to help our friends, siblings, relatives, even our Maid/Dudhwala/PaperWala to inform about saving for future.
Hence do not delay your retirement plan including your medical security. Since it is easy to build a big corpus with little money only if we start early.Follow Us In Social Media: