Retirement Planning: What are your plans for life after retirement? More than half of Indians do not have the answer to this question yet. The results of a survey show that about 51 percent of the people in the country do not have a plan for retirement. The priority of the people is the financial security of children and spouse rather than retirement planning. The notion is now outdated that India is a country of savers. The increasing number of home loans, unsecured loans and credit cards show that Indians are now paying more attention to lifestyle-related expenses. This was revealed in the survey of PGIM India Mutual Fund.
PGIM India Mutual Fund is a wholly-owned business unit of Prudential Financial Inc.’s global investment management business. He has done this survey through Nielsen. In this survey, it was studied to study what kind of attitude people have towards retirement.
Questions asked in the survey conducted in 15 cities
This survey was done in 15 cities across the country. In this, some specific questions were emphasized, such as when doing Indian people plan for retirement and what are the possible reasons; What financial instruments do they use; Does lack of awareness undermine retirement planning; Are Indians eager for more information on retirement planning; And how can employers play an important role in raising such awareness in them.
- Today, urban Indians are reducing savings and investment. They are spending about 59% of their income on current expenses.
- 51% of the people surveyed have not made any financial plan for their retirement.
- 89% of Indians who have not prepared for retirement do not have any alternative source of income.
- Only 1 out of every 5 Indians consider inflation while planning for retirement.
- 41% of the people surveyed said that they have insisted on life insurance in investing for retirement, while 37% have given priority to fixed deposit schemes ie FD.
- 48% of the participants had no idea how much they would need for the post-retirement life.
- 48% of those surveyed who did not know how much money they wanted, 69% of them did not finally have any retirement plan. In contrast, of the 52% of people who had awareness about the amount they would need for life after retirement, 66% had planning for retirement.
- Indian people take care of personal events of their life when planning for retirement, but ignore external events.
- Urban Indians, on an average, have a target of creating a fund of about 50 lakh rupees. The average annual income of the people involved in the survey was about 5.72 lakh rupees and the average age was 44 years. These participants believe that they will need a fund of about Rs 50 lakh for retirement, which is about 8.8 times their current annual income.
- Only 46% of the private sector employees believe that their employers have motivated them to plan for retirement.
Focus on fitness and lifestyle
It has been revealed in the survey that retirement planning is below the priority of the people, while the financial security of children and spouse and even fitness and lifestyle are at the top position in it. Indians living in joint families feel more secure financially and it is still considered an important foundation for retirement.
According to Ajit Menon, CEO of PGIM India Mutual Fund, one cannot get a loan for just one financial goal, that is retirement. You can get a loan for everything else, for higher education, house, car, starting a business etc. That is why it is the responsibility of all of us to be prepared for it in every way.