The world is undergoing a profound demographic transition. Driven by falling fertility rates and rising life expectancy, the global population is steadily ageing. As of 2024, over 830 million people — roughly 10% of the world’s population — are aged 65 and above. This trend is not confined to the developed world. Between 2019 and 2050, the proportion of older persons is projected to double across Northern Africa, Western and Central Asia, Latin America, and large parts of East and South-East Asia. Globally, someone turning 65 today can expect to live another 17 years on average.
By 2030, according to the United Nations, the number of people aged 60 and above will exceed that of children under 10, with two-thirds of the elderly residing in developing countries. India, too, is experiencing this shift, though with regional variations. The Economic Survey projects that the share of Indians above 60 will rise from 8.6% in 2011 to 15.9% by 2041. In Bihar, one of the country’s youngest states demographically, the proportion is expected to grow from 7.4% in 2011 to 11.6% by 2041.
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This transformation is often framed as a crisis of dependency. But that overlooks the opportunity it presents. With strategic policy interventions, ageing can be reimagined—not as a burden, but as an economic and social asset.
Bihar’s ageing population
Bihar is experiencing a gradual, but unmistakable, demographic transformation.
Life expectancy: The average life expectancy at birth rose from 65.8 years in 2006–10 to 69.0 years in 2018–22—a gain of over three years.
Fertility decline: The fertility rate dropped from 3.6 children per woman in 2011 to 3.0 in 2022, shrinking the base of young workers entering the labour force.
Youth-age inversion: The proportion of those aged 0–19 is projected to fall from 49.4% in 2011 to 30.1% by 2041, even as the elderly population rises to 11.6% over the same period.
Such a shift requires timely investments in systems that support active ageing, rather than reactive welfare.
Rethinking retirement in the 21st century
The conventional notion of retirement at 60 or 65 is increasingly outdated. Longer lifespans and evolving economic structures demand flexibility in work and retirement norms. Many countries have responded by raising retirement ages.
Singapore, for instance, will increase its official retirement age to 64 and re-employment age to 69 by 2026. This is part of a broader plan to push those figures further to 65 and 70, respectively, by 2030. According to the OECD, 23 of its 38 member nations are on track to raise retirement ages to an average of 66.3 years for men and 65.8 years for women.
India, including states like Bihar, must consider similar reforms—enabling part-time, flexible, or phased retirement options for seniors who are willing and able to contribute.
Bridging the digital divide
Participation in the modern economy increasingly depends on digital literacy—a challenge for many older adults. Internet access and digital device usage decline significantly with age, reflecting a deep digital divide.
Schemes like the Pradhan Mantri Gramin Digital SakshartaAbhiyaan can help bridge this gap, but implementation must be tailored for older users. Training modules must prioritise usability, offer hands-on guidance, and foster digital confidence in seniors. Equipping the elderly with digital skills is not just a matter of inclusion, but of economic utility and personal dignity.
Tapping the silver economy
Ageing can fuel new markets and entrepreneurship. Seniors are increasingly launching businesses, offering consultancy services, and participating in community-based ventures. At the same time, the “silver economy”—products and services tailored to the elderly—is poised for rapid growth. From wellness and home care to geriatric technology and leisure, demand is expanding.
Recognising this, the Indian government has introduced supportive platforms. The SACRED portal connects senior citizens with job providers, while the SAGE initiative promotes startups offering elder-care solutions. Such programmes, if expanded and integrated with state-level employment policies, can reframe the elderly not as passive recipients of welfare, but as drivers of innovation and demand.
Health, technology and independent living
Health remains the cornerstone of autonomy in old age. Preventive healthcare, early screening, and community-based services can help maintain independence longer. Smart technologies—such as wearable health monitors, telemedicine platforms, and home automation systems—can significantly enhance quality of life.
However, investments in elder-friendly infrastructure must keep pace. Urban planning must prioritise accessible transport, barrier-free buildings, and geriatric health centres. Without such reforms, longer lives may become liabilities rather than assets.
Encouraging intergenerational collaboration
Ageing societies need not be divided societies. Intergenerational workplaces and communities benefit from the experience, mentoring, and emotional intelligence of older adults. Structured mentorship programmes, reverse learning systems, and age-diverse teams can improve productivity, preserve institutional knowledge, and foster empathy.
Rather than seeing the old as competitors, a collaborative approach strengthens social cohesion and long-term resilience.
Towards a new economic framework
The macroeconomic response to ageing must go beyond welfare transfers. Reforming pension systems for sustainability, incentivising age-inclusive hiring, supporting lifelong learning, and enabling older entrepreneurs are essential pillars.
International models offer lessons. The EU’s “Active Ageing” framework emphasises continued participation in economic, social, and cultural life. Japan and Singapore have embedded active ageing into national planning, focusing on healthcare, employment, and community integration.
India must chart its own course—but with urgency and ambition.
A policy imperative, not a social footnote
Ageing is no longer a distant concern—it is a present challenge. Improved public health systems and better socio-economic conditions have extended lifespans, but policy adaptation remains slow.
If left unaddressed, ageing could strain health and social systems. But with the right mix of inclusion, innovation, and investment, older adults can enhance productivity, deepen civic participation, and enrich social capital.
The Sustainable Development Goals promise to leave no one behind. That includes the elderly—not merely as a vulnerable group, but as citizens with potential. For states like Bihar and others on the cusp of this transition, early and inclusive planning is the only sustainable way forward.
Dr Barna Ganguli teaches at Bihar Institute of Public Finance and Policy (BIPFP), Patna. Manoj Narayan is a social policy expert.