EPFO to increase retirement age soon!

Employees Provident Fund Organization (EPFO) has reportedly proposed to increase the retirement age of private and public employees. The organization says that the retirement age should be increased with the view of life expectancy. It has argued that the pension system should be more strong if the retirement age of the employees increases.

As per the Employees Provident Funds Act 1952, the average life expectancy of Indians were close to 40 years. With the span of time, it is 70 years now with increased access to better living conditions and healthcare facilities, due to which the average Indian is likely to hit 80 years in the next few years.

In India, the retirement age of an employee is between 58 to 65 years, while the age is 58 years for private sector employees and 65 years for the public sector employees. The average age of retirement in the European Union is 65 years and in Denmark, Italy and Greece of Europe is 67 years. Although in America it is fixed at 66 years.

According to media reports, the EPFO will ensure that the employees will get enough retirement benefits. If the retirement age is increased then the members will be able to save more and will also be able to get more pensions. The pension is greater by 4 percent, at 59 years. If an employee opts at 60 years then he will be entitled to 8 per cent higher pension.

“If the retirement age increases, then more money will also be deposited on behalf of the employees in the pension fund and the employees will get the more benefits,” said KK Jalan, the central EPFO Commissioner adding that if the size of the pension fund increases then it could be used to contribute in the economy.

Even after retirement, members can contribute towards the EPFO till the age of 65, but there will be no benefits on contributions after the retirement.

According to reports, by the year 2047, India will have more than 140 million retired people, whose age is now 60 years, due to which the pressure on the pension fund will also increase significantly.

8 Comments
  1. P.E. Vijayagopala Menon says

    Sir,
    As observed , the undersigned could not get EPS Pension that though, the undersigned actually contributed for more than 10 years up to my rtirement on super annuation, since the age for reirement under EPS Rule is 58, I am unable to receive any pension. If the EPF authorities raised the age to 60 years, those employees like me will be benefitted. The undersigned was retired on 31-07-2005 after attaining 60 years.

  2. Nitul Boruah says

    It is very very good thinking. If the decision will be taken , we will be happy. And it is necessary to do this immediately.

  3. Laxminarayana Dash says

    If any one is retiring in 2022 at 60 years age and then after retirement age is increased, can he get benefits to serve for the difference period.

  4. Sudhir says

    Why the retirement age for those working private company is 58? Are govt.emplyee are more fit? Or pvt co. want to use young age.
    ‘One india one retirement age’ is must. Irrespective of central, state, or pvt employee.

  5. WYC says

    Malaysian retirement age should be review, update, align with Singapore 62 instead, not 60.
    Those Malaysian who work in Singapore would extend service for 2 years. Because Singapore MOM system set by default till 60 only.

  6. Subha says

    Unless the EPFO pension scheme has a provision of time to time revision of pension in line with old pension scheme of central govt, it is very difficult to predict how attractive will be the EPFO pension scheme in long run in view that pensioners are foregoing part of their PF accumulation (employers part with interest) which otherwise would have been passed down to their son/ daughter).

  7. LR says

    People should get pension irrespective if they decide to retire early since they have contributed to the EPS.

  8. Dipak Kumar Datta says

    The retirement age must be increase immediately for Private Employees. It should be upto 62 years. Government and EPFO Should not delay in this case. It must have to be ensure by Central Government and EOFO that all Private Sector will implement the rule for their employees also.

  9. Parayath Eravi Vijayagopala Menon says

    Sir, It will benefit and remove the grievances of employees like me. Even though, I had contributrd for the erstwhile CPF till the age of 60, but the qualified age as per EPS is 58, the under signed left out from receiving EPS. Since the EPS being a social security measures, raising the age of 60 is quite genuine and appreciable.

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