Younger Generation at the Forefront of Retirement Planning

Another key aspect to consider is the age breakdown of EPFO subscribers. The data suggests a diverse range of age groups actively engaging in retirement planning through EPFO schemes. The younger workforce has shown a significant inclination towards contributing to the EPF (Employees’ Provident Fund) and other schemes offered by the EPFO. Data reveals a surge in EPFO subscribers within the younger age groups. Between 2018-19 and 2022-23, the number of net subscribers aged between 18 and 35 rose by approximately 109 per cent, showing a growing awareness among younger employees regarding the significance of long-term financial planning and retirement savings from an early age.
The EPFO’s membership is skewed towards the younger age group, with 82 per cent of the members being below 35 years. However, numbers tell a different story when it comes to new subscribers. In the five years between 2018-19 and 2022-23, the net subscribers on payroll registered with EPFO declined by 18 per cent for the age group below 18 years. This could be attributed to stricter laws on the employment of underage individuals in the formal sector. In the same period, the net subscribers saw the largest increase in the age bracket of more than 35 years from 5.58 lakh new members in 2018-19 to 23 lakh in 2022-23. For the age brackets of 18 to 25 years and 26 to 35 years, net member addition between 2018-19 and 2022-23 was at 66 per cent and 237 per cent, respectively. In Financial Years 2021-22 and 2022-23, the increase in EPFO subscribers is commensurate with the share of young people (18-28 age group) getting formal jobs which has risen steadily from 62.1 per cent in FY21 to 66.5 per cent in FY23. That subscribers in this age group are usually first-timers in the labour market indicates the robustness and heightened focus towards social security by both employers and employees. However, the ‘29-35 age group’ and ‘more than 35 age group’ have witnessed a steady decline