www.ijcrt.
org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
EMPLOYMENT AFTER RETIREMENT IN
INDIA – AN EMPIRICAL STUDY
Dr Madhu Gupta
Associate Professor
JDMC, University of Delhi, India
ABSTRACT
The ageing population has a detrimental impact on the country's socioeconomic resources and increases
financial strain on the working population. OADR's rapid and unabated growth is becoming a huge
socioeconomic worry for India. Efforts should be taken to integrate this greying population into the
workforce, not just to make them economically self-sufficient, but also to keep them physically and
psychologically fit. The current poll looks into why people work or don't work after they retire from their
employment, and it provides crucial new insights into the many characteristics and variables that inspire
people to work past retirement age. The study's primary data is collected through a structured questionnaire
from 176 participants using a Google form, then analysed and presented using statistical techniques. The
study also advises policymakers on the many initiatives that need to be made to reintegrate retirees into the
workforce.
KEY WORDS
Ageing population, Gender, Labour shortage, Old-age dependency ratio, Pension, Postretirement work,
Retirees, Retirement, Retirement Age, workforce.
INTRODUCTION
Ageing of the population has become a global phenomenon due to a decrease in fertility and mortality rates.
According to World Population Prospects 2019 (United Nations, 2019) “There were 703 million persons
aged 65 years or over in the world in 2019. The number of older persons is projected to double to 1.5 billion
in 2050. Globally, the share of the population aged 65 years or over increased from 6 per cent in 1990 to
9 per cent in 2019. That proportion is projected to rise further to 16 per cent by 2050, so that one in six
people in the world will be aged 65 years or over.” (United Nations, 2019)
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d678
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
The ageing population has a detrimental impact on the country's socioeconomic resources and places
additional financial strain on the working population. The old-age dependency ratio (OADR) has
continuously increased across all regions. Globally, there were 16 persons aged 65 years or over per 100
persons aged 20-64 years in 2019. In 2050, the global OADR is projected to increase to 28 older persons
for every 100 working age persons. (United Nations, 2019)
In India, the proportion of people aged 60 and more was 7% in 2009, and it was expected to rise to 20% by
2050. That is, by 2050, one out of every five Indians will be over the age of 60. In absolute numbers, the
elderly population in 2009 was approximately 88 million and is expected to sharply increase to more than
315 million by 2050. (Subaiya, 2011). In 2020, old-age dependency ratio (65+ per 15-64) for India was 9.8
ratio. Old-age dependency ratio (65+ per 15-64) of India increased from 6 ratio in 1971 to 9.8 ratio in 2020
growing at an average annual rate of 1.00%. (Knoema, 2021)
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d679
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
The rapid and continuing expansion of OADR is becoming a serious socio-economic concern for our
country, putting a financial strain on families. Governments must try to integrate this greying population
into the workforce, which will not only make them economically independent, but also physically and
psychologically fit, as well as provide them with a sense of social and emotional fulfilment. Complete
retirement from employment has been shown to reduce mobility and everyday activities, as well as increase
physical and mental disorders in the elderly. These adverse health effects can be reduced in elderly if s/he
continues to work part-time upon retirement. (Stutzer, 2004)
Many organizations are concerned about predicted labour shortages due to an ageing population. IT experts,
physicians, biologists, radiologists, and other highly qualified individuals who earn training and knowledge
in their 30s retire at the age of 60 or 65. As a result, there are severe shortages of these qualified and
experienced workers, and rehiring talented and informed retirees is one clear way to alleviate these labour
shortages.
Almost all countries were short of healthcare experts, police officers, IT workers, and a variety of other
allied services people during the coronavirus outbreak. Many families' primary breadwinners lost their
jobs/businesses as a result of the repeated lockdowns, and many families faced greater financial hardship as
a result of growing medical bills and diminished income. Healthy retired workers not only boost family
income, but they also serve as a powerful support system for the country in times of crisis.
The majority of studies on the elderly in India has focused on concerns such as social security, mistreatment,
health, residential arrangements, and welfare programmes, but just a few have looked into their workforce
involvement, particularly after they have retired from their job. The current survey investigates why people
work or don't work after they retire from their jobs, and suggests policymakers the many steps that should
be made to reintegrate them into the workforce so that they can contribute meaningfully to the country's
economic development.
OBJECTIVES
To analyse the reasons for people in India working/not working after retirement and to advise the
government on what policy decisions are needed for meaningful employment of retirees so that they can
contribute to the growth and development of the economy in a better way.
DATA AND METHODOLOGY
The survey is based on both primary and secondary sources of information. Primary data was gathered using
a structured questionnaire in Google Forms, which included a variety of questions ranging from general to
specific to employability after retirement. The request to fill out a Google form was made via WhatsApp,
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d680
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
word of mouth, phone, and social media sites such as Facebook.com. By filling out the questionnaire, 176
people from all over India contributed to the study. Books, reports, journals, magazines, existing research
papers, newspapers, websites, and other published sources were used to collect secondary data.
Using Ms-Excel, the data was analysed using percentages, graphical presentations, frequency distribution,
and cross tabulation.
LITERATURE REVIEW
Some of the articles and their respective findings on the subject are listed below.
Husain, Z. and S. Ghosh (2010), “Economic Independence, Family Support and Perceived Health Status of
Elderly: Recent Evidence from India”, demonstrated that eco-nomic status is a crucial factor which
determines health status of an elderly. Elderly with poor economic status reported poor health because
economic dependency restricts their final say on health care needs and they have to obey their caretaker’s
decisions. (Lucky Singh, 2013)
The study done by Ranu Sewdas, Astrid de Wind, Lennart G.L. van der Zwaan, Wieke E. van der Borg,
Romy Steenbeek, Allard J. van der Beek & Cécile R.L. Boot “Why older workers work beyond the
retirement age: a qualitative study” found that the most important motives for working beyond retirement
age were maintaining daily routines and financial benefit. Good health and flexible work arrangements were
mentioned as important preconditions. (Ranu Sewdas, 2017)
A study by Nicole Maestas “Back to Work: Expectations and Realizations of Work after Retirement” reveals
that nearly 50 percent of retirees either take part time job or full-time job and returning to work is not related
to financial emergency, poor planning or low wealth accumulation. (Maestas, 2010)
A study by Gary Burtless, and Robert A. Moffitt “The Joint Choice of Retirement Age and Postretirement
Hours of Work” shows that Social Security has a significant effect on the age of retirement and
postretirement work which increases with age. (Moffitt, 2021)
Carola Burkert &Daniela Hochfellner in their study “Employment Trajectories Beyond Retirement” found
that individuals’ preferences to take up post-retirement jobs are dependent on financial security, continuity,
and work ability. (Hochfellner, 2017)
The study done by Antara Dhar “workforce participation among the elderly in india: struggling for economic
security” reveals that workforce participation of males is declining during the study period (between 2004
and 2009) and the elderly workers are generally engaged in the primary sector in rural areas and in services
in urban areas. (Dhar, 2014)
Hung-Hao Changa and Steven T.Yen investigated in their study “Full-time, part-time employment and life
satisfaction of the elderly” the association between part-time and full-time employment and life satisfaction
of the elderly in Taiwan. They found that elderly with part employment have higher life satisfaction than
elderly with full time employment. (Yen, 2011)
DATA ANALYSIS AND INTERPRETATION
176 people from all over India contributed to the study by filling the questionnaire online. The survey gave
the following results.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d681
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
Worked after retirement
62% never worked after retirement, only 38% of the respondents worked after retirement but 42% of them
left their job and not working now.
Number of respondents % of Respondents
Not Worked after 109 61.93
retirement
Worked after 67 38.07
retirement Yes
Grand Total 176 100.00
Number of % of
Respondents Respondents
Never worked after retirement 109 61.93
worked after retirement but not 28 15.91
working now
Still working 39 22.16
176 100.00
% of Respondents
Still working 22.16
worked after retirement but not working now 15.91
Never worked after retirement 61.93
The effect of demographic and other characteristics of Respondents on Employment after retirement
To analyse the effect of demographic and other characteristics on employment after retirement, four factors
are studied viz Gender, Pension, Cohabitation and Professional qualification.
a) Gender
Worked Number of Number of
after Female % of Female Male % of Male
retirement Respondents Respondents Respondents Respondents
No 56 81.16 53 49.53
Yes 13 18.84 54 50.47
Grand
Total 69 100.00 107 100.00
As shown in above table, gender is an important factor in determining post retirement work status. Only
19% of females but 50% of males worked after retirement.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d682
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
b) Pension
Row Labels Number of worked %
Respondents after Worked
retirement after
retirement
Not getting pension after 57 32 56.14
retirement
Getting pension after 119 35 29.41
retirement
Grand Total 176 67 38.07
Another important factor is financial security in the form of pension. Only 29% of the respondents who
were getting pension worked after retirement while 56% of those who were not getting pension worked.
c) Cohabitation
Number of worked %
Respondents after Worked
retirement after
retirement
Alone 6 4 67
With Children Only 25 8 32
With Siblings/Friends/Servants/Other family 6 1 17
members
With Spouse and Children 66 19 29
With Spouse only 42 23 55
With Spouse, Children and other Family 31 12 39
members
Grand Total 176 67
Cohabitation also plays an important role in post-retirement work status . 67% of those Living alone and
55% who lived with only spouse worked and the percentage of the respondents worked after retirement and
are living with full family is comparatively less.
d) Professional Qualification
Number of worked %
Respondents after Worked
retirement after
retirement
Not Professionally 94 28 29.79
qualified
Professionailly 82 39 47.56
qualified
Grand Total 176 67 38.07
48% professionally qualified respondents reported that they worked post retirement while only 30% of not
professionally qualified worked.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d683
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
Reasons for Working after Retirement
As the table shows, 40% of the respondents cited pleasure as the reason for post-retirement work, 30%
worked for financial reasons and 29% for their fitness and health.
Reason of Working after retirement Number of % of respondents
Respondents
Financial 29.73
Fitness and Health 33 28.83
Pleasure 32 36.04
Other not specified above 40 5.41
% of respondents
Other not specified above 5.41
Pleasure 36.04
Fitness and Health 28.83
Financial 29.73
0 5 10 15 20 25 30 35 40
Availability of Flexible hours and Work from Home arrangements at Work
Survey shows that out of those worked after retirement only 19% didn’t get any flexibility, while 81%
reported that they had either flexible working hours or work from home facility or both.
Availability of Flexible hours and Work Number of % Of Respondents
from Home arrangements at Work Respondents
Flexible hours 45 50.56
Working from home 27 30.34
None of the above flexibility 17 19.10
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d684
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
Reasons for not Working after Retirement
To fulfil other life goals (27%) and to just relax (26%) are the most popular reasons cited by respondents
for not working after retirement. Other reasons cited for not working are Health issues (12%), to discharge
other responsibility (14%) and 13% said they couldn’t find desired job.
% 0f
Reasons for not Working after Retirement Respondents
Any other 8.03
Did not get the desired job 13.14
Health issues 12.41
Other responsibilities- family, business, migration to
hometown/with children etc 13.87
To fulfil other life goals - religious/spiritual, Travel, Hobby,
Social etc. 27.01
To just relax, chatting with friends, watching Television and
listening music, sleeping, Reading etc 25.55
Grand Total 100.00
% 0f Respondents
To just relax, chatting with friends,
25.55
watching Television and listening…
To fulfill other life goals -
27.01
religious/spiritual, Travel, Hobby,…
Other responsibilities- family, business,
13.87
migration to hometown/with children etc
Health issues 12.41
Did not get the desired job 13.14
Any other 8.03
0.00 5.00 10.00 15.00 20.00 25.00 30.00
Conclusion
The rapid and continuing growth of OADR is becoming a serious socio-economic worry for our country,
putting increased financial strain on the existing workforce. Governments must seek to integrate this greying
population into the workforce, which will not only make them economically independent, but also
physically and psychologically fit, as well as provide them with a sense of social and emotional fulfilment.
According to our research, a large majority of the elderly do not work after retirement (62 percent). Elderly
in India are often more content and do not have many demands. They desire to live a peaceful life after
retirement, where they can pursue their passions and do things they couldn't do while working, such as
travel, gardening, community service, and religious work. Many retirees do not work once they retire
because they believe they are too old to work. There is a societal stigma associated with it. The elderly also
fear that continuing to work will not seem good in society, and that not supporting their offspring will leave
a terrible impression on them. Even self-employed people (farmers, shopkeepers, professionals) stop
working beyond a certain age, even if they are otherwise healthy. A small percentage mention health as a
reason for not working after retirement, while some cite not being able to find a desired employment as a
reason.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d685
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
Another finding of this study is that the elderly does not prefer fixed work schedules. Even if they get less
money, they prefer to work from home or with flexible schedules after retirement. Working part-time or
with flexible hours gives them a feeling of identity or status in society without tying them down to a job for
long periods of time. With work from home, they can devote more time to their family and indulge in their
passions as well as other social/religious activities that they couldn't accomplish with regular employment.
According to the survey, the pleasure of working is the most important factor in continuing to work after
retirement. They enjoy sticking to their normal work routines and socialising at work. Another purpose is
financial gain. Some people claimed health and fitness as a justification for continuing to work after
retirement. They feel that not working or sitting idle can have a negative impact on one's physical and mental
wellbeing. According to the findings of this study, gender has a significant effect in the decision to work or
not work after retirement. In India, women undertake a variety of unpaid tasks such as wife, mother, and
homemaker throughout their lives, and these are regarded as their major occupation. Paid work is a double
load and a secondary job for the majority of women in India. “Around the world, women spend two to ten
times more time on unpaid care work than men.” (Gaëlle Ferrant, 2014) Men are viewed as the primary
source of household income. So, when a woman retires, she does not lose her identity or status in society,
and she has many other responsibilities to keep her busy, such as caring for her home or grandchildren. As
a result, post-retirement women have chosen not to work and instead want to relax or pursue other
religious/social goals. It is not her responsibility to generate income for the family. In addition, women are
more likely than men to retire voluntarily because they are relinquishing a secondary role rather than their
primary role when they retire. Men, on the other hand, are perceived to be the family's breadwinner. If the
family does not have any financial reserves for old age, he will continue to work after retirement. Men, on
the other hand, do not have much of a role in housework, so they prefer to work outside to keep themselves
healthy and busy. In India, wives usually follow their husbands when they retire, but not the other way
around. (Satter, 2018)
Other important factors include pension, cohabitation, and professional qualification. People who live alone
or have a professional qualification are more likely to work, whereas those who receive a pension after
retirement are less likely to work. With a pension as financial security, the elderly does not want to stress
themselves in their old age and prefer to spend time with their families in their home country. If they live
alone, they work to establish a social circle with which to interact and to keep themselves busy and stress-
free. Professionally qualified individuals, such as lawyers, chartered accountants, doctors, and engineers,
are typically hired as advisors or consultants to work from home and on their own schedule. Non-
professionals have a difficult time finding such jobs after retirement.
Because the current study is based on a sampling method and relies on online responses collected via a
Google form from social media, these conclusions are only suggestive.
Suggestions/ Social implications
According to our research, a sizable number of respondents, despite being in good health, want to relax after
retirement and do not want to work. There are also a significant number of elderly people who are looking
for work after retirement but are unable to find suitable employment. Individuals in India may live 25 years
or more after retiring without much financial security, owing to increasing, healthier life spans and changes
in pension systems since 2004 (from old pension scheme to new pension scheme). New retirees may enjoy
relief from daily monotony, a long commute, and workplace politics at first, but after a few months or years,
they may feel bored, aimless, and isolated. Working after retirement improves their physical and mental
health, as well as their overall quality of life.
Unfortunately, there is no formal support system in India for such elderly people looking for alternative
sources of income. Employers today, both in the public and private sectors, are resistant to the idea of hiring
retired seniors. Companies may consider hiring retirees to reduce costs, particularly in part-time or seasonal
work, and to provide the organisation with unique sources of knowledge or specialised skills. Retirees can
be hired for short periods of time during peak demand (e.g., CA during tax season), as short-term
consultants, or to train senior executives.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d686
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
It is suggested that, in order to reduce predicted labour shortages due to an ageing population, the Central
and State Governments should make reemploying experienced knowledgeable retirees a top priority when
developing policies for the elderly. Both the public and private sectors should seriously consider reserving
a percentage of jobs for senior citizens that are part-time, require flexible hours of work, or can be done
from home. Reemploying retirees will benefit both parties: the elderly will be able to spend their time more
productively, and the country will benefit from their experience.
We also advocate for the establishment of dedicated employment centres to assist senior citizens in finding
work. Individuals or self-help groups of seniors should be given preference for Mudra Loans if they are
starting a business. Training and refresher courses for the elderly to impart new technical knowledge and
skills should be provided at a reduced cost.
References
Dhar, A. (2014). workforce participation among the elderly in india: struggling for economic security. The
Indian Journal of Labour Economics, Vol. 57, No. 3, 221-245.
Gaëlle Ferrant, L. M. (2014). Unpaid Care Work: The missing link in the analysis of gender gaps in labour
outcomes. OECD Development Centre.
Hochfellner, C. B. (2017). Employment Trajectories Beyond Retirement. Journal of Aging and Social
Policy, 143-167.
John Ameriks, J. B. (2019). Older Americans Would Work Longer If Jobs Were Flexible.
Knoema, a. E. (2021). India - Ratio of population aged 65+ per 100 population 15-64 years. India: Knoema,
an Eldridge business.
Lucky Singh, P. A. (2013). Determinants of Gender Differences in Self-Rated Health Among Older
Population: Evidence From India. SAGE Open , 1-12.
Maestas, N. (2010). Back to Work: Expectations and Realizations of Work after Retirement. PMC.
Moffitt, G. B. (2021). The Joint Choice of Retirement Age and Postretirement Hours of Work. Journal Of
Labor Economics.
Ranu Sewdas, A. d. (2017). Why older workers work beyond the retirement age: a qualitative study. BMC,
BioMed Central .
Satter, M. (2018, December 10). Husbands retire, wives follow—but not vice versa. BenefitsPRO.com.
Stutzer, A. (2004). The Role of Income Aspirations in Individual Happiness. Journal of Economic Behavior
and Organization, pp. 89-109.
Subaiya, L. a. (2011). Demographics of Population Ageing in India. New Delhi: United Nations Population
Fund (UNFPA).
United Nations, D. o. ( 2019). World Population Ageing 2019: Highlights (ST/ESA/SER.A/430). New
York: United Nations, Department of Economic and Social Affairs.
Yen, H.-H. C. (2011). Full-time, part-time employment and life satisfaction of the elderly. The Journal of
Socio-Economics, 815-823.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d687
www.ijcrt.org © 2021 IJCRT | Volume 9, Issue 9 September 2021 | ISSN: 2320-2882
References
Dhar, A. (2014). WORKFORCE PARTICIPATION AMONG THE ELDERLY IN INDIA: STRUGGLING
FOR ECONOMIC SECURITY. The Indian Journal of Labour Economics, Vol. 57, No. 3, 221-245.
Gaëlle Ferrant, L. M. (2014). Unpaid Care Work: The missing link in the analysis of gender gaps in labour
outcomes. OECD Development Centre.
Hochfellner, C. B. (2017). Employment Trajectories Beyond Retirement. Journal of Aging and Social
Policy, 143-167.
John Ameriks, J. B. (2019). Older Americans Would Work Longer If Jobs Were Flexible.
Knoema, a. E. (2021). India - Ratio of population aged 65+ per 100 population 15-64 years. India: Knoema,
an Eldridge business.
Lucky Singh, P. A. (2013). Determinants of Gender Differences in Self-Rated Health Among Older
Population: Evidence From India. SAGE Open , 1-12.
Maestas, N. (2010). Back to Work: Expectations and Realizations of Work after Retirement. PMC.
Moffitt, G. B. (2021). The Joint Choice of Retirement Age and Postretirement Hours of Work. Journal Of
Labor Economics.
Ranu Sewdas, A. d. (2017). Why older workers work beyond the retirement age: a qualitative study. BMC,
BioMed Central .
Satter, M. (2018, December 10). Husbands retire, wives follow—but not vice versa. BenefitsPRO.com.
Stutzer, A. (2004). The Role of Income Aspirations in Individual Happiness. Journal of Economic Behavior
and Organization, pp. 89-109.
Subaiya, L. a. (2011). Demographics of Population Ageing in India. New Delhi: United Nations Population
Fund (UNFPA).
United Nations, D. o. ( 2019). World Population Ageing 2019: Highlights (ST/ESA/SER.A/430). New York:
United Nations, Department of Economic and Social Affairs.
Yen, H.-H. C. (2011). Full-time, part-time employment and life satisfaction of the elderly. The Journal of
Socio-Economics, 815-823.
IJCRT2109407 International Journal of Creative Research Thoughts (IJCRT) www.ijcrt.org d688
