Retirement Age in India

India has one of the lowest retirement ages globally, ranging between 58 and 60 years. The age of retirement tends to vary across armed forces, government jobs and private companies.

Additionally, individual states can set their own retirement ages by aligning with the central government’s guidelines. For example, most states, including Andhra Pradesh, have raised the retirement age from 60 to 62 in several services.

In line with this decision, the central government can also decide to increase the age of central government employees from 60 to 62 or 65 years. Discussions on the same are ongoing across various departments and are yet to be finalised.

The retirement age in India varies across sectors and among employees. Follow the given table to understand the retirement age across different sectors:

The central government employees' retirement age in India is 60 years as per the Central Civil Services (Pension) Rules 1972. However, some of the exceptions to this rule are:

• Academics: According to the University Grants Commission (UGC) Regulations 2018, the retirement age for directors, professors, and principals in centrally funded universities is 65 years. 
• Regulatory Board Members: The retirement age for chairpersons and members of statutory and regulatory bodies typically vary.
  
  For bodies like SEBI (Securities and Exchange Board of India), TRAI (Telecom Regulatory Authority in India), and UPSC (Union Public Service Commission) the retirement age can go up to 65 to 70 years, as per Department of Personnel and Training (DoPT) guidelines on Tenure, Terms, and Conditions of Appointment of Chairpersons/Members of Regulatory Bodies and Tribunals.
• Scientists: The retirement age for scientific and technical members in organisations like the Defence Research and Development Organisation (DRDO) is fixed at 60 years.
  
  Although certain high-ranking officials can have the retirement age of 64 years depending upon the performance and work requirement under the DRDO Recruitment Rules for Scientist B and above.
• State Government Employees: State governments can change the retirement age for state employees. For example, some states have a retirement age of 62. State governments can change the retirement age for state employees. For example, some states have a retirement age of 62.

Retirement age in the private sector in India varies between 58 and 60 years, depending on the company's terms and conditions. The retirement age in the private sector is more flexible and is determined by company policies or individual contracts.

Companies offering higher retirement ages benefit from better leaders and subject-matter experts for a longer period. They have the advantage of delaying the retirement benefits till the retirement age.

Defence personnel include employees posted in the three defence services, including the Army, Navy, and Air Force. The retirement age of defence personnel varies across the three services and depends on the postings and the readiness and physical intensity required for the job.

Retirement age for different defence personnel branches is as follows:

• Indian Army: 54 to 58 years, depending on the ranks.
• Indian Navy: 56 years
• Indian Air Force: 60 years

Public sector undertaking (PSU) employees have their retirement age at 60 years. It has recently been increased from 58 years. However, this recent update does not apply to employees who have already retired in accordance with the existing rules.

Apart from directives and guidelines set by the goverment, there are several other factors too that affect the retirement age in India. The key of those factors can be seen below:

A sound retirememt planning is key to a stress-free future. It is paramount to pick a structured retirement plan because uncertainties may arise from unforeseen causes.

A well-considered retirement plan supports sound, long-term financial choices. The important benefits of early retirement planning in India are as follows:

The demand to raise the retirement age in India, both in government and private companies, is growing due to higher life expectancy.

As per latest studies, currently, 7 out of 10 working individuals are financially dependent on their children after retirement. Hence, the Economic Survey of India 2019 recommends raising the retirement age from 60 to enhance the sustainability of the current pension system.

On the contrary, raising the retirement age would disrupt normal operation since the majority of the resources would be used in creating more employment. Also, individuals would be forced to work more, and this would affect their health in old age. They would also have less time with their families.

Currently, the retirement age in India is 60, but debates are going on to raise it to 62 or 65. Analysing the advantages and disadvantages of raising the retirement age will enable the authorities to design the best-suited policy.

Therefore, the future of retirement age in India could favour the ageing population by offering them extended service years and regular financial income.

The post-retirement years are the golden period of an individual’s life if retirement planning is done early. If you plan your retirement, then you could take a break from work and use it as an opportunity to try new things in life.

You can use the retirement calculator to estimate your ideal retirement age, expected savings, and post-retirement income.