Beyond Dependency: Recognising the Value of the Elderly

Older generations contribute to family life and society in ways that go beyond financial support.

We often look at children as an investment in the future. Families willingly spend years providing education, healthcare, financial support and opportunities, believing that these investments will eventually help children become independent and productive members of society. At the other end of life, however, the narrative can change. As parents grow older, stop earning or begin requiring assistance, conversations increasingly revolve around healthcare expenses, financial dependency, caregiving responsibilities and the pressure on family resources.

This raises an important question: Have we become so accustomed to measuring economic contribution through income and employment that we have stopped recognising the value older people continue to bring to families and society? Ageing undoubtedly brings financial and healthcare challenges. However, looking at older people primarily through the lens of expenditure presents an incomplete picture. Their contributions extend well beyond their retirement income or ability to remain employed.

Recognising these contributions also requires a change in how we interact with older family members. Conversations with ageing parents should not revolve only around their health, medical appointments or financial requirements. Their experiences, aspirations, opinions and continuing role within the family deserve equal attention. Understanding how to communicate with ageing parents is an important part of building relationships in which older people continue to feel heard, valued and involved.

1. The Invisible Economy: Contributions That Rarely Get Counted

Consider a working couple with two children. Both parents have demanding jobs, and their ability to continue working depends partly on how they manage childcare and household responsibilities. In many Indian households, grandparents and older family members play an important role. They look after grandchildren, supervise daily routines, help with schoolwork, prepare meals and provide support when children fall ill. Their presence can make it easier for younger parents, particularly women, to continue working and pursuing their careers. This is an economic contribution, even though no salary is paid and no invoice is generated.

The same applies to household management. Older parents may coordinate domestic help, manage everyday household requirements, supervise repairs and provide support during difficult periods. If these services had to be purchased from the market, they would involve a financial cost. The contribution is not necessarily less valuable because it happens within a family rather than through a paid service.

India’s latest Time Use Survey 2024, published by the Ministry of Statistics and Programme Implementation, provides useful evidence of this contribution. Among Indians aged 60 and above, 57.2% participated in unpaid domestic services for household members, while 17.9% participated in unpaid caregiving activities. Additionally, 32.3% participated in employment-related activities and 20.8% participated in the production of goods for their own final use.

The gender differences are particularly revealing. Among older women, 80.6% participated in unpaid domestic services, compared with 34% of older men. Participation in unpaid caregiving was 21.7% among older women and 14.1% among older men. These figures demonstrate that a substantial proportion of older Indians continue to contribute through activities that are not reflected in conventional employment or income statistics. Much of this work supports the functioning of families and, indirectly, the wider economy.

2. Wealth Creation Does Not End at Retirement

Another important aspect of ageing is the accumulated wealth and financial resources that older generations bring into family relationships. Over several decades, individuals build assets, savings, property, investments and financial security. These resources often continue to support younger generations, whether through financial assistance, shared housing or transfers of assets.

Consider some familiar situations. Parents may help children with the down payment for their first home, allow working children to live in a family-owned property without paying rent, contribute towards grandchildren’s education or use savings accumulated over a lifetime to help children establish businesses and manage financial emergencies. Property and other assets may eventually pass to the next generation through inheritance. These transfers can significantly reduce the financial pressures faced by younger households.

Financial support is not always a one-way street. Older people may receive assistance from their children, but those who have accumulated savings and assets can also continue supporting younger family members. This is particularly relevant when discussing financial independence and protecting the finances of older people. Supporting children should not mean compromising one’s own retirement security. Older parents need to balance generosity with the resources required for their healthcare, living expenses and future care.

Wealth transfer is also not limited to inheritance after death. It often happens during an individual’s lifetime through financial assistance, shared housing and everyday family support. Recognising this contribution does not mean assuming that every older person is financially secure. Many face inadequate savings, limited pension coverage and rising healthcare expenses. The important point is that retirement does not automatically bring an end to financial contribution within a family.

Financial support to adult children can continue well into a parent’s retirement years. Parents may help with a home purchase, a career transition, retraining, a business venture or an unexpected financial setback. Such support can make a meaningful difference to the next generation, although it needs to be balanced against the parents’ own long-term financial security. The GreySmiles Generational Resilience Fund explores how families can plan this support through defined limits and clear expectations, without putting retirement independence at risk.

3. Experience, Knowledge and Emotional Capital

Not every contribution can be measured in money. Older generations bring decades of experience in managing relationships, making difficult decisions, handling uncertainty and navigating personal and professional challenges. Within families, this experience can be particularly valuable during periods of uncertainty. A parent who has experienced economic downturns, business failures, health emergencies or family difficulties may offer perspectives that help younger members make more informed decisions.

Grandparents also play an important role in transmitting family history, cultural traditions, values and practical knowledge to younger generations. Beyond individual families, older people contribute through mentoring, volunteering, community engagement and participation in social and civic activities. These contributions strengthen relationships and help preserve social connections across generations. Experience may not always have a market price, but it has considerable value.

However, these relationships need to be nurtured. Older parents should not be included in family conversations only when a decision needs to be made on their behalf. Listening to their views, understanding their expectations and respecting their choices are equally important. Our article on talking to ageing parents explores why meaningful communication becomes increasingly important as family roles and responsibilities evolve.

4. Older People Are Also Consumers and Economic Participants

There is another dimension that deserves attention: older people are not merely recipients of goods and services. They are also consumers who create demand across several sectors. Retired individuals with adequate savings, pensions, rental income or other financial resources continue to spend on healthcare, diagnostics, medicines, travel, holidays, housing improvements, independent living solutions, fitness, wellness, financial services, technology and social activities. Their spending supports businesses and creates demand for products and services that respond to changing needs as people age.

As India’s population ages, these needs will create opportunities for businesses, entrepreneurs and service providers. NITI Aayog’s 2024 report, Senior Care Reforms in India, identifies significant opportunities across healthcare, home care, assistive technology, senior living and technology-enabled services. It estimates India’s senior-care industry at approximately ₹57,881 crore.

This is an important shift in perspective. An ageing population is not just a demographic challenge; it is also an opportunity to develop new products, services, employment opportunities and businesses. The growing need for eldercare services in India creates opportunities in companionship, assistance with daily activities, medication reminders, home healthcare, mobility support and emergency response. Similarly, the development of assisted living in India reflects changing preferences among older people and families who are looking for arrangements that combine safety, support, community and independence.

Older consumers should not be viewed as a single category. Their financial capacity, preferences and requirements differ considerably. Some have substantial savings and assets, while others manage on limited pensions or family support. The opportunity lies in understanding these differences and developing appropriate products and services rather than treating older people as a uniform market.

5. Dependency and Contribution Can Coexist

It would be unrealistic to suggest that ageing does not create additional responsibilities. Some older people experience declining health, reduced mobility, cognitive difficulties or financial insecurity. They may require assistance with everyday activities, medical care and financial management. For families, these responsibilities can involve considerable emotional, physical and financial pressure. We need to acknowledge this honestly rather than romanticise ageing.

However, needing care does not erase a person’s contribution to society. Nor does it diminish their dignity or their right to live with independence and respect. There is also no single model of ageing. Some people continue working well into their seventies, while others become mentors, volunteers, caregivers or active members of their communities. Some enjoy financial independence, while others need substantial support. Each person’s circumstances and requirements are different.

For families living in different cities or countries, these challenges can be particularly significant. Ageing independently when children live abroad requires more than occasional phone calls. It involves building reliable arrangements for companionship, healthcare, practical assistance and emergencies. The objective should not be to expect every older person to remain productive or financially independent. It should be to create an environment in which people can continue contributing where they are able to, while receiving appropriate support when they need it.

6. Moving Towards Intergenerational Equity

The relationship between generations should not be viewed as a one-way transfer of resources. Children receive support from parents as they grow up. As adults, they may receive financial assistance, childcare support and guidance from their ageing parents. Eventually, they may take on caregiving responsibilities themselves. This is a continuous cycle of interdependence, with each generation contributing in different ways at different stages of life.

Intergenerational equity should therefore mean recognising the needs, contributions and responsibilities of every generation. For families, this means valuing older members beyond their financial contribution. It also means having conversations about money, living arrangements and future care before circumstances make decisions necessary. Open communication, including meaningful conversations with ageing parents, can help families understand expectations and make decisions together rather than assuming what older family members want.

For businesses, it means recognising older people as consumers, employees, mentors and participants in the economy. For policymakers, it means developing systems that support healthy ageing, financial security, independent living and accessible care. For society, it means moving away from the assumption that a person’s economic and social relevance declines simply because they have stopped earning a regular income.

7. Building a Society That Recognises the Value of Ageing

India is moving towards a significantly older population. The decisions we make today will influence how future generations experience retirement, independent living and old age. We need better healthcare infrastructure, accessible housing, home-based care, financial protection and opportunities for active ageing. Equally important, we need to recognise the contributions that older people already make rather than viewing them only through the costs associated with ageing.

Families, businesses, healthcare professionals, community organisations and governments all have a role to play. For families, this begins with recognising that older parents may have aspirations and preferences that extend well beyond their financial security. For businesses, it means designing products and services that respond to the actual needs of older consumers. For society, it means making independent living, social participation and access to care easier. The aim should be to create an environment where people can continue to participate in family and community life for as long as they wish and are able to.

Frequently Asked Questions

Do elderly people contribute to the Indian economy?

Yes. Older Indians contribute through paid employment, unpaid domestic work, caregiving, production for their own use, consumption and financial support to family members. The 2024 Time Use Survey found that 32.3% of people aged 60 and above participated in employment-related activities on the reference day.

How do elderly parents support their working children?

Many older parents help with childcare, household management, financial assistance and family responsibilities. These contributions can reduce household expenses and help younger family members continue working. The extent of support varies across families.

What is the silver economy in India?

The silver economy refers to economic activity associated with the needs, spending and participation of older people. It includes healthcare, senior living, home care, financial services, travel, wellness, assistive technology and other products and services designed for an ageing population.

Does an ageing population create an economic burden?

Population ageing creates additional requirements for pensions, healthcare and caregiving. However, older people also contribute through employment, consumption, unpaid household work, financial transfers and community participation. Looking only at the costs of ageing provides an incomplete picture.

What is intergenerational equity?

Intergenerational equity is the principle of recognising the rights, needs, responsibilities and contributions of different generations. It encourages a balanced relationship in which resources, support and opportunities are shared fairly between younger and older people.

Sources & References

• Ministry of Statistics and Programme Implementation – Time Use Survey 2024.
• Time Use in India, 2024 – Full Report.
• NITI Aayog – Senior Care Reforms in India, 2024.

GreySmiles is an independent information platform covering retirement, ageing, financial preparedness, eldercare and independent living in India. Our aim is to help individuals and families make informed decisions and approach later life with greater confidence.