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While the survey found a marked increase in the awareness for the need of early need retirement planning, it found urban working women taking strides in this direction.
The survey about retirement planning indicates how the topic is becoming more and more important in the financial landscape of the common person in India. (Picture Credit: depositphotos)
Despite many acutely feeling the need for retirement planning in this country, it remains a largely unaddressed subject in India with a recent survey jointly by Max Life Insurance and KANTAR have found out. One of the startling findings of the survey is that less than a quarter – about 24% believe that the amount of money they painstakingly save from their income – will last for only 10 years after retirement.
The study titled India Retirement Index Study (IRIS) was conducted in 28 cities across the country and 2,077 individuals were interviewed. It measured the financial preparedness for retirement as well as mental and emotional readiness for that momentous eventuality.
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Right age to start retirement planning
The survey found that as many as 44% of the respondents believe that one should begin retirement planning before the age of 35. This is a sharp increase from the 38% who said in the earlier survey carried out in 2023 that such planning should begin before 35.
Investment strategist and director Wishlist Capital, Nilanjan Dey said, “The recently rolled-out NPS Vatsalya has paved the way for parents of a kid kicking off retirement planning soon after birth, thereby creating a situation for creating a huge pool of funds.”
More women into retirement planning
A significant 68% of urban women have already started retirement planning, it was found. It marked a big 7 percentage point rise from the survey conducted in 2023. As many as 66% feel confident that their current investments are sufficient to ensure financial well-being post retirement. More and more people are also regretting the delay in launching retirement planning. As many as 93% of those above the age of 50 have lamented the delay.
Regional differences in retirement planning
Interestingly, the survey found significant differences among inhabitants in different regions of India approaching the essential topic differently. The Eastern zone is the leader in planning for retirement with finance index at 57%, health index 51% and emotional index at 62%. The scores of the West that came second stood at 53% (finance), 46% (health) and 57% (emotional).
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