Why Kashmir's Public Servants Are Retiring Into Debt

Ghulam Rasool spent over thirty years working as a clerk in Srinagar's government offices. He was proud of his job, steady and respectable. He worked long hours, often under the strain of Kashmir's harsh winters and political uncertainty, believing that a pension and gratuity would carry him into a peaceful retirement. Instead, they have become sources of anxiety.

Rasool's story is far from unique.

Scores of retired government employees in Kashmir face mounting debts, rising medical expenses, and the pressure of supporting their children well into adulthood.

The familiar narrative of stable government employment unraveling into financial instability is becoming increasingly common.

Once, government jobs were abundant, prized for the security they offered in a region marked by economic and political challenges.

Now, these jobs are scarce, their competition fierce.

As vacancies shrink, younger generations find themselves waiting longer for employment, often relying on their parents for financial support far beyond what previous generations expected.

The real problem emerges when children pursue higher education outside Kashmir, a growing trend among Kashmiri families.

Fees in mainland India or abroad can cost several lakhs of rupees. The social obligation to arrange marriages, especially of daughters, comes with its own heavy price tags.

These cultural and economic realities combine to drain the savings of the service class.

Despite their best efforts, many lack the tools to plan effectively for long-term financial health. Traditional savings accounts and fixed deposits, once considered safe, now deliver returns that barely outpace inflation.

The inflation rate in India has averaged around 6 to 7 percent annually in recent years, while fixed deposits offer 5 to 6 percent returns at best.

This gap slowly erodes purchasing power, leaving retirees exposed to rising costs without a sufficient financial buffer.

A systematic approach to investment remains elusive for many in Kashmir. Financial literacy is low, and opportunities for guidance are limited. Mutual funds, recurring deposits, insurance policies, and government schemes remain misunderstood or inaccessible to many public servants.

Few think of setting aside 30 percent of their income early on, or building a diversified portfolio that can withstand market cycles and inflation.

The wisdom of elders, passed down in conversation rather than books, holds untapped value. Retired officials often share stories of managing family expenses during uncertain times, choosing between medical emergencies and basic household needs.

Their practical experience offers a roadmap for young families facing similar dilemmas today. But these lessons rarely make it into structured financial planning.

Farida Jan, a retired school headmistress in Anantnag, managed to support three children through university by making small, steady investments in government savings schemes and buying property over time.

“It wasn't easy,” she says,“but starting early, saving small amounts regularly, and being disciplined made the difference.”

Farida's experience is a model rarely acknowledged in formal financial discussions but is proving vital in Kashmir's unique socio-economic context.

The impact extends beyond individual families.

An entire generation risks entering retirement without financial stability, triggering a cycle of dependency and distress. Hospitals report rising cases of retired employees seeking medical help without means to pay. Families delay medical treatment or push children into poorly paid jobs simply to survive.

Kashmir's young generation faces a stark choice. They can either replicate the same path that led their elders into financial uncertainty, or they can break free of it by taking financial planning seriously from the start.

Open discussions in families, practical investment strategies, and seeking guidance from those who have lived through hardship are essential first steps.

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