The Hindu Business Line : Greying population

The article “Coping with an ageing population” (Business Line, January 23) has expressed serious concern over the increase in the greying population, the retired employees and the amount disbursed as pension in India.

A growing population of senior citizens is indeed a serious problem the country faces today as the amount spent on their welfare in the form of pension is a transfer payment, which is an unproductive expenditure. Naturally, this cannot enhance the national income, which is defined as the money value of goods and services produced in the country.

But there are several solutions to this seeming problem. For one, the Governments, both at the Centre and the States, could think of raising the retirement age of the existing work-force and increasing their productivity too.

They could also encourage retired people to become entrepreneurs in their post-retirement period and, above all, utilise their experience and wisdom for the economic and social well-being of society and thereby growth of the economy.

S. Ramakrishnasayee Ranipet