Higher retirement age, income security in government jobs: Here is what EAC-PM recommends

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A study conducted by the Institute for Competitiveness (IFC) on behalf of the Economic Advisory Council to the Prime Minister (EAC-PM) has suggested the government increase the retirement age and introduce a Universal Pension Income programme.

IFC recommended a pension payment of Rs 1,500 - Rs 2,500 per month to improve income security for elderly people in India, the Economic Times reported.

The study was commissioned by the Economic Advisory Council to assess the quality of life of the elderly population in India on parameters like financial well being, social well being, health and income security.

The recommendations made by the IFC include a pension payment of at least 50 percent more than the minimum wages in the country, as per the report.

It also said that the pension scheme must be non-contributory with the overall pension amount being financed by state and central government equally.

Besides, the pension amount must be credited through direct benefit transfers.

The report said that due to the impact of the COVID-19 pandemic, the amount under existing age-old schemes like Indira Gandhi National Old Age Pension Scheme "needs to increase as soon as possible".

It also suggested that the government strengthen the Atal Pension Yojana and bring informal sector workers under its ambit.