What Is The Retirement Age In Private Sector in India?

Retirement Age for Private Sector Employees

The retirement age for private sector employees usually stays consistent throughout. However, there can be a slight change in the age for retirement that you should note. Accordingly, you can plan your retirement on time to stay financially independent even if there is no regular income source.

Here is a table depicting the retirement age for private company employees:

Private Sector

Retirement Age

IT Sector

60

Multinational Companies

60

Private Bank Chiefs

70

Banking Sector

60

Marketing Sector

Between 58 and 62

From this table, you can quickly determine when you will be retiring. However, you can also retire early before reaching the stipulated age. For this, you need to save adequately so you do not have to be financially dependent on others.

So, you can start planning for your retirement at the desired age from today. In addition to this, you can also receive several perks and benefits when retiring from private sector companies.

Benefits After Retirement from a Private Sector Company

FAQs About Retirement Age in the Private Sector

What is the right age to retire in the private sector? up-arrow

There is no right age to retire in the private sector. Employees have the flexibility to retire at the age of 60 or 62. Also, they can retire early if they do not wish to work further or keep working beyond 60 if they want.

Is the retirement age in the private sector gradually increasing? up-arrow

Yes, many companies are gradually increasing their employees' retirement age from 60 to 65. This ensures that the experienced employees keep serving their company till the young employees do not get enough experience.

When should private sector employees start planning for retirement? up-arrow

Ideally, private sector employees should start planning for their retirement in their early 20s. However, if you have not started yet, you can start your retirement planning today.

What is the minimum age for retiring in the private sector? up-arrow

There is no minimum age for retiring. You can take the decision of taking a retirement based on your lifestyle goals and financial capabilities. These factors ensure that you make the right decision.

What is the voluntary retirement scheme in the private sector? up-arrow

In the private sector, the employer offers voluntary retirement schemes to employees willing to end their service period before the age of 60 years. However, to be eligible for this, the employee must be above 40 and have worked at that company for over 10 years.

What is the retirement age for private employees in EPF? up-arrow

Employees in the private sector should have a retirement age of 58 years to receive the EPF pension. However, if they retire before this age, that is, between 50 and 57 years, they will receive a reduced pension.