Is The Retirement Age For Government Employees Set To Increase? Here’s What The Government Says

In India, the typical retirement age ranges between 58 and 60 years. However, there have been consistent demands to increase this age in certain departments. As India faces an ageing population and rising life expectancy, addressing the financial well-being of retirees becomes crucial. One potential solution is extending working years, while another may be adequate pensions.

According to a Colliers report released in May 2024, the senior population in the country is expected to reach 21 per cent by 2050, compared to the current 11 per cent. While the increasing number of seniors is not necessarily a concern, their financial and overall well-being remains critical. Consequently, questions regarding pensions, income, and retirement age frequently arise.

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When Lok Sabha members Rambhual Nishad and Manickam Tagore inquired about raising the retirement age for central government employees from 60 to 62 years to alleviate the pension burden, Jitendra Singh, Minister of State in the Ministry of Personnel, Public Grievances, and Pensions, stated on December 11, 2024, in a written reply, “No such proposal is under consideration of the Government.”

Similarly, on December 19, 2024, Rajya Sabha member Tejveer Singh also asked whether the government was considering an early retirement scheme for central government employees or a policy where employees can increase their retirement age, or if there is any policy granting employees the flexibility to ‘retire earlier or later as per their preference’.

In response, Jitendra Singh reiterated in a written reply, “There is no such proposal under consideration of the Government.”

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So there is no such change in the policy under consideration as of now.

The minister further clarified that existing rules already prescribe early retirement options for employees and employees can refer to it. He stated, “Central Government employees who fulfil the prescribed criteria have the option to seek early retirement available to them under Central Civil Services (Pension) Rules, 2021, All India Services (Death-cum-Retirement Benefits) Rules, 1958, etc.”

While private-sector employees often aim for early retirement under the ‘Financial Independence, Retire Early (FIRE)’ strategy, government employees typically advocate for an increase in the retirement age.

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According to Statista.com data, the retirement age in approximately 45 countries as of 2020 was 60 years or above. In comparison, the retirement age in India is 58, while it is 60 in China, 64 in the European Union on average, 66 in Germany, and 66 in both the United Kingdom and the United States.