Facts about Indians and Retirement Planning
The Indian Retirement Study published by Max Life Insurance in 2023 unveiled some interesting facts.
90% of the respondents over the age of 50 years regret not investing earlier for their retirement. Financial literacy has increased multifold in India; however, the realization to plan for retirement has not yet translated into proactive investing.
The survey also brought to light the key barriers that deter Indians from planning their retirement. Most respondents believe they have sufficient family wealth to fall back on and anticipate their children would cater to their needs. The remaining 24% revealed that they do not have a trusted advisor or lack knowledge about where to start, demonstrating a stark gap in financial awareness.
As per the survey, 40% of urban Indians have not invested for their retirement so far. While India's life expectancy has increased consistently, it is vital to initiate retirement planning at an earlier age and pave the path for a financially independent life.
- Set a target retirement age
- Identify your retirement goals
- Calculate the amount you will need to meet these goals. Factor inflation into the calculation
- Invest in the right retirement plan that can help you stay financially prepared to meet your post-retirement goals.
- Your retirement age
- Your health and lifestyle
- Any loans or liabilities
- The retirement goals you may have
- Any commitments you may have to fulfil