Older Indians find it harder to re-enter the workforce: McKinsey report
Says family remains the primary source of care and support for people aged 55 and above, but limited access, especially for the less wealthy, serves as a barrier to receiving essential care
- Nov 23, 2023,
- Updated Nov 23, 2023 5:30 PM IST
While older Indians exhibit higher participation rates across various activities compared to the global average, their inclination to work is impeded by challenges like a dearth of appealing opportunities, stated McKinsey Health Institute (MHI) global report ‘Aging with a Purpose’.
The report is based on a survey of over 21,000 adults aged 55 and older from 21 countries; with around 1,000 respondents from India. Promoting the re-entry of older adults into the workforce is touted as a solution, with the potential to contribute to a 7.8% annual GDP boost in India. However, economic struggles persist, and the 55-and-older population’s dedication of nearly 73 billion hours to volunteering is overshadowed by unmet demands, with the potential to add over 103 billion hours annually.
Family continues to be a primary source of care and support for older Indians, but limited access, especially for the less wealthy, serves as a barrier to receiving essential care. Surprisingly, despite expressing a notable interest in technology, particularly smartphones, older Indians face hindrances such as a knowledge gap, cost, lack of trust, and availability, further deepening their challenges, the report said. Addressing these issues necessitates comprehensive initiatives focused on technology literacy through education, training, and public information campaigns, the report said.
The report revealed a gradual decline about 20-25% in health of older adults as they progress from the age group of 55-64 to 80 and above. While this decline is comparatively milder than other Lower Middle-Income Economies (LMIEs) and the global average, the challenges faced by older Indians paint a sombre picture, the report said.
“In essence, these findings spotlight the unique health dynamics and opportunities in India’s aging population. They highlight the positive self-perception of health among older Indian respondents in the over-55 age groups (surpassing averages of Lower Middle Income Economies),” said Sasikanth Dola, Partner, McKinsey & Company. “However, the knowledge gap for new-age skills poses a hurdle, implying a need for educational and awareness initiatives. With active community participation emerging as a health booster, continuing to actively participate in the workforce among older adults would strengthen overall health and economic goals,” he said.
Despite optimism prevailing among older Indians, transcending chronic conditions, with 70-80% of respondents aged 55-64 and 50-65% of those over 65 expressing positive sentiments about their health, the overall well-being of this demographic is under threat, the report said. Crucial factors contributing to their health, such as regular exercise, financial security, access to quality healthcare, limited exposure to digital content, and the presence of recreational public spaces, cannot fully offset the challenges.
Also Read: Vinay Tonse appointed as MD of SBI till Nov 30, 2025, says report
While older Indians exhibit higher participation rates across various activities compared to the global average, their inclination to work is impeded by challenges like a dearth of appealing opportunities, stated McKinsey Health Institute (MHI) global report ‘Aging with a Purpose’.
The report is based on a survey of over 21,000 adults aged 55 and older from 21 countries; with around 1,000 respondents from India. Promoting the re-entry of older adults into the workforce is touted as a solution, with the potential to contribute to a 7.8% annual GDP boost in India. However, economic struggles persist, and the 55-and-older population’s dedication of nearly 73 billion hours to volunteering is overshadowed by unmet demands, with the potential to add over 103 billion hours annually.
Family continues to be a primary source of care and support for older Indians, but limited access, especially for the less wealthy, serves as a barrier to receiving essential care. Surprisingly, despite expressing a notable interest in technology, particularly smartphones, older Indians face hindrances such as a knowledge gap, cost, lack of trust, and availability, further deepening their challenges, the report said. Addressing these issues necessitates comprehensive initiatives focused on technology literacy through education, training, and public information campaigns, the report said.
The report revealed a gradual decline about 20-25% in health of older adults as they progress from the age group of 55-64 to 80 and above. While this decline is comparatively milder than other Lower Middle-Income Economies (LMIEs) and the global average, the challenges faced by older Indians paint a sombre picture, the report said.
“In essence, these findings spotlight the unique health dynamics and opportunities in India’s aging population. They highlight the positive self-perception of health among older Indian respondents in the over-55 age groups (surpassing averages of Lower Middle Income Economies),” said Sasikanth Dola, Partner, McKinsey & Company. “However, the knowledge gap for new-age skills poses a hurdle, implying a need for educational and awareness initiatives. With active community participation emerging as a health booster, continuing to actively participate in the workforce among older adults would strengthen overall health and economic goals,” he said.
Despite optimism prevailing among older Indians, transcending chronic conditions, with 70-80% of respondents aged 55-64 and 50-65% of those over 65 expressing positive sentiments about their health, the overall well-being of this demographic is under threat, the report said. Crucial factors contributing to their health, such as regular exercise, financial security, access to quality healthcare, limited exposure to digital content, and the presence of recreational public spaces, cannot fully offset the challenges.
Also Read: Vinay Tonse appointed as MD of SBI till Nov 30, 2025, says report