The young cohort of Indian population – Millennials – must realize the evolving scenario and appreciate the importance of saving early for a better post-retirement life.

Globalization, innovation, advances in science and technology — our world is changing rapidly amid these developments. Many of these trends are so impactful that they can be considered megatrends. Changes brought about by such magnitude are already shaping societal constructs, how people lead their daily lives, plan for their future, and, ultimately, prepare for their retirement.

Increase in life expectancy and aging population are megatrends that are exerting financial strain on social security safety nets as well as workplace benefits such as retiral benefits. In 1950, when many of the current social security systems were being designed, the world population consisted of 205 million people over the age 60. By 2050, this figure is projected to reach 2.1 billion, a more than 10-fold increase.

As per recent UN Population Report, the world’s population is expected to increase by 2 billion in the next 30 years, from 7.7 billion currently to 9.7 billion in 2050 and India’s population is projected to surpass China’s population by 2027. Developed economies like the United States, Japan and Western Europe nations had undergone similar transition in the mid-1980s when the number of aged and retired persons slowly outnumbered the young and working population.

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