A Study of Demographics and the Need for Social Security in India: An Urgent Issue

Abstract

Around the world, rising life-expectancy and consequent demographic burden combined with increasing fiscal pressures on governments are playing an instrumental role in reforming existing pension systems. India does not have a formal social security system as in the developed countries.  Though, it was among the few countries to set up the provident fund Act in 1952, yet the rules and regulations governing such organization have not kept pace with time. Although, throughout the world, pension reforms are taking place, but the developed countries whose pension systems are older and which also have proper social security systems are facing a greater challenge than the developing countries. The challenge of rising life expectancy and the need for adequate income supports in the old age calls for appropriate reforms in the existing systems. The research paper has been discussed in two parts: the first part tries to explore the comparative old age population burden in different countries, particularly in India, where the huge unorganized sector and a predominant agricultural sector present peculiar challenges; the second part dwells on the study of the pattern of household savings in India. The study finds that the older population itself is ageing and the older population will be predominantly FEMALE. Both developed and developing countries strike similarity here. Hence, the need for old age income supports. There is a need to encourage people to have old age savings to take care of their post retirement years.