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.

FAQs

You may consider the below steps to plan for your retirement and achieve your financial goals:

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.

Retirement for everyone is different. This is why, the money you need for your retirement depends on various factors like:

Your retirement age
Your health and lifestyle
Any loans or liabilities
The retirement goals you may have
Any commitments you may have to fulfil

We can help you find out the amount you may require to invest to maintain your life during retirement with our retirement calculator. Just answer a few basic questions on your income, age, the number of years till you want to retire, your current retirement savings, if any, etc.

Not thinking ahead can hamper your retirement. Some of the decisions like quitting your job before checking on your retirement-plan vesting status, not saving or planning, not maxing out employer matching funds, investment mistakes and poor tax planning can impact your retirement.

You should start planning for your retirement as early as possible. Investing early offers more time for your money to grow and chances to earn higher returns. This helps you stay financially prepared for your post-retirement needs. The amount you need to save for retirement depends on your post-retirement goals. You may want to travel, buy a house, start a new venture and more. You would also want to continue your current lifestyle after retirement and meet medical expenses. Basis these, you can calculate the amount you will need during your retirement. Do not forget to factor inflation into this calculation. Once you have calculated the amount you will need for your retirement, you will be able to calculate the amount you need to save now to stay financially independent during retirement.

Facts about Indians and Retirement Planning

FAQs

What are some effective ways to plan for retirement and achieve my financial goals?

What is the ideal income I need during retirement?

What are some of the mistakes you can make in planning for retirement?

When should I start planning for retirement and how much do I need to save to prepare?

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