The Impact of Raising the Retirement Age

Raising the retirement age can significantly influence the economy by retaining experienced workers longer, which may counteract the effects of a shrinking workforce due to declining birth rates. For example, some tech companies in India, like Cognizant, are already increasing the retirement age to 60 to mitigate high attrition rates and maintain a seasoned personnel base. This approach not only helps bridge talent gaps but also encourages older employees to contribute to the economy longer, delaying pension payouts and increasing tax revenue through continued employment. As India’s population dynamics shift, moving to a higher retirement age could help harness the potential benefits of an aging workforce.