Archive · 1 Dec 2025
Sanyal Warns of Pension Sustainability Crisis
Sanjeev Sanyal, an economist, says that governments need to be careful about promising big pensions.
He explains that pensions are paid by taxes from current workers.
If there are fewer young people in the future, they will have to pay very high taxes to support retirees.
This could make young people leave the country or stop working, which would be bad for the economy.
Sanyal also talks about how birth rates are falling in India and other countries.
He says that no country has been able to increase birth rates, and this could cause problems for schools, universities, and other services.
He suggests that India should stop population control programs to avoid making the problem worse.
Sanjeev Sanyal warns that declining birth rates threaten pension sustainability.
Pensions are funded by taxing current workers, who will face high taxes with fewer youth.
India's birth rate peaked at 29 million in 2001 and is now 23 million and falling.
Sanyal compares India's situation to countries like China and Korea, where birth rates are critically low.
He suggests ending population control programs but admits no solution exists to increase birth rates.
- Who
- Economist Sanjeev Sanyal
- What
- Warning about unsustainable pension promises due to declining birth rates
- When
- Present and future implications
- Where
- India, with references to Europe, Japan, and Korea
- Why
- Declining youth population makes high pension payouts unsustainable
- Economist
- Sanjeev Sanyal
- Current Indian Births
- 23 million annually (falling)
- Peak Indian Births
- 29 million in 2001
- China's Current Births
- 9 million annually
- Korea's Fertility Rate
- One-third of replacement rate
- Sanyal's Warning
- High taxes on shrinking youth population
- Potential Consequences
- Youth emigration, economic decline
- Sanyal's Solution Suggestion
- End population control programs