Ageing, Old Age Income Security and Reforms

Much of the recent growth of India's elderly population is expected to comprise persons with adverse life course experiences, clouded by excessive socio-economic backwardness. Such an ageing process suggests the need for a multi-pillared income security system. The analysis of this paper that focuses on three major income security plans for the aged reveals that the government is instead working to dilute much of its responsibilities. This study strongly argues for (i) strengthening of the social assistance programme for older persons and modification of the ceiling formula used for capping the size of its beneficiaries; (ii) providing a guarantee against diminution of investments in the reformed pension policy, and (iii) devising long-term old age savings instruments with higher terminal yield.