SL should consider its retirement policy - Demographist

PANEETHA AMERESEKERE- FEB 22 2019

As life expectancy increases, it is worth reconsidering retirement guidelines, a World Bank (WB) article released on Wednesday (20), quoting Former Chair of Demography at the University of Colombo, Professor Indralal de Silva said.

A woman in Sri Lanka lives to about 79 years, while men live to about 73 years and if people retired between the ages of 50 and 60, they could expect to live close to two decades without a salary, the article on its website and further quoting de Silva said.

Meanwhile, the WB said that in some cases the average pay-out from EPF might only yield an income of about Rs 2,650 per month (below poverty line) over a 23-year life expectancy at retirement age of 55 for men and Rs 2,130 per month for women, who can retire at 50 and have a longer life expectancy.

This scenario is further complicated when you consider the informal sector, affecting the estimated 61 per cent of Sri Lankan workers who are employed informally, it said.

The WB further said that though a Government pension scheme exists, it however remains insufficient to meet the needs of pensioners.

The situation is further compounded by the fact that the island’s population pyramid no longer resembles a pyramid, but a rectangle, the WB said.

Explaining further, the WB said, Sri Lanka is confronting a profound demographic shift due to falling fertility rates and rising life expectancy. The base of the population pyramid–consisting of young people–is shrinking, while the number of elders is growing. By 2050, it is projected that the proportion of the elderly (23 per cent) will surpass that of the youth (17%), the WB said.

‘The pyramid is losing its shape’, the report quoting the author of the Sri Lanka Development Update and the Senior Country Economist for Sri Lanka and the Maldives, Fernando Im said.

‘Compared to its peers, Sri Lanka has reached an advanced stage of this demographic transition’, he said.