The citizens of India are enjoying a longer life and better living conditions as a result of increased life expectancy, increased standard of living as well as medical advancement. The longevity of life, if not planned well for retirement, could imply a high fiscal burden for the government on account of providing for healthcare of the elderly in the absence of proper insurance and inefficient public healthcare system. Despite the efforts by the Government to introduce new policies, the elderly lack the security needed in old age and live with a low social status with increasing reports of financial deprivation, abandonment and humiliation. Also, the need for developing financial market infrastructure for pension funds cannot be overlooked. The study recommends a number of initiatives that can be undertaken in time for the care of the elderly by the government, so that addressing financial burden can be better planned and addressed. The paper, more importantly, suggests that financial literacy and a variety of financial instruments should be considered by the government to address the issues of ageing population in India.