Retirement savings are not a top priority for urban India, but they fear savings will not be enough to cover life in old age as only one in three is actively working to meet retirement goals, according to a study.
Max Life Insurance, in partnership with marketing data company Kantar, conducted a survey to assess the readiness of the urban white-collar class for a happy and financially independent life in retirement.
Around 90 percent of those surveyed over the age of 50 regretted not having started early enough to save for retirement.
In its second edition, the survey finds that the India Retirement Index Study (IRIS) remains at 44, suggesting that the readiness of the urban white-collar class to plan for retirement has been delayed over the past year.
The survey, conducted in a self-administered digital manner, involved 3,220 male and female respondents in 28 cities, of which 6 were metro cities and 12 were Tier I and 12 were Tier II cities.
Life expectancy has been increasing steadily for years.
“The goal here is to create a barometer, or mirror, through which we can see how we’re making progress. I think there are several questions when you start thinking about retirement. There are few realities that everyone is talking about that India is a very young country but India is also aging,” Prashant Tripathy, Managing Director and CEO, Max Life Insurance said here while briefing reporters.
In the next 8-9 years, the number of people who will turn 60 will increase by 41 percent.
“The second reality is that life expectancy will continue to increase as humanity develops and prospers. Life expectancy at the moment is almost 70 years, but it is expected to reach around 80 years in a few years. So, people are going to live longer,” Tripathy said.
The health and financial preparedness index was 41 and 49, respectively. Emotional readiness fell from 62 to 59, suggesting an increasing reliance on family, friends, and social support in retirement.
Tripathy said Indians need to start planning their retirement early so they have enough to live healthy and financially independent lives.
“We urge India to recognize the importance of timely retirement planning and encourage them to work to secure their future,” the official added.
Soumya Mohanty, Managing Director and CCO, Insights Division, South Asia, Kantar said the survey provides a compelling perspective on how urban Indians view and plan for retirement.
