As per survey findings revealed by Max Life Insurance’s through its India Retirement Index study, over 50% of Indians believe that their retirement kitty will be exhausted within just 10 years of retirement, and 9 out of 10 Indians are concerned that their savings might not last throughout their retired life.
The study polled 1,816 respondents across 21 metros, Tier 1 and Tier 2 towns Delhi, Mumbai, Bengaluru, Chennai, Pune, Kolkata, Rajkot and Chandigarh.
High on realization, low on the action- How India is procrastinating on retirement
The survey revealed that over a quarter of those polled felt that retirement planning should be started before the age of 35, while 21% felt that the age bracket of 36-50 years is the ‘ideal’ age-group to start retirement planning. Despite this, retirement planning does not figure amongst the top goals for investing or saving.
Amongst those polled, only two out of five invest towards retirement, which depicts Indian’s procrastination towards retirement, the study says. While Indians are positively inclined towards retirement, they are high on realization, low on action. the study noted.
It’s only when they inch closer to retirement does the realization seem to hit them, as 80% of the respondents over the age of 50 admitted that they should have started investing for retirement much earlier.
India’s retirement index
India’s retirement index stands at 44, according to the company’s ratings, with health and financial preparedness being the key retirement concerns for Indians. This index indicates the degree to which Indians feel prepared for their retired life, on a scale of 0 to 100. As per Max life’s study, the retirement index assists in assessing how prepared Indians are, for a healthy, peaceful and financially independent post-retirement life.
A majority believes health is the key to peaceful retired life
63% of those polled in the survey said that health will be the most crucial aspect for them to take care of during their retirement years, whereas nearly 29% emphasized on money to be the most critical for retired life.
As per the survey, despite the concerns around retirement, nearly 23% of respondents have not even given a thought to retirement planning.
Financial freedom and medical expenses are key drivers towards retirement planning
AS per the survey, amongst those who had started planning for retirement by investing in financial products, 47% said that the aim of financial independence was the key reason why they started retirement planning.
Another 38% cited the need for maintaining their lifestyles post-retirement, and an equal proportion cited taking care of medical expenses as the driving factor towards retirement planning.
But close to 35% of the respondents had not invested in any financial product to save for retirement, and amongst the rest 65%, only 40% had chosen life insurance, followed by recurring deposits and fixed deposits (27%), mutual funds (12%), real estate (11%) and physical gold (10%).
Most Indians wish to live with children after retirement
50% of Indians, as per the survey, were certain that they would live with their children post retirement, whereas 32% said they might stay with their children. And just 2% had plans of staying separately.
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