Nine out of 10 Indians feel unprepared for retirement: Survey

MUMBAI: In the Covid-influenced new normal, even a person’s preference for planning about own retirement has been put in the back-burner while priorities such as children and spousal security, and even fitness have taken a precedence, a pan-India survey by PGIM India Mutual Fund found. Shockingly, almost nine out of 10 Indians feel they are unprepared for retirement and do not have any alternative income, a release by the fund house said.
Some of the key findings of the survey were that urban Indians are saving and investing less, while allocating nearly 59% of income to current expenses, and given less savings, Indians are also increasingly anxious about their future. “With the rise of home loans, unsecured loans and credit cards, Indians are saving and investing less, and focusing more on current expenses rather than saving and planning for the future,” a release from the fund house said.
The survey also showed that barely one in five Indians consider inflation while planning for retirement. It also found that just about half the respondents said they have a retirement plan in place.
The survey by PGIM India MF, the local arm of the Prudential Financial Group of US, also showed that 41% of the respondents had focused their retirement investments on life insurance, while 37% preferred fixed deposits. Qualified financial planners always tell their customers that insurance is for protection while FDs rarely help create wealth, that is give the investor return that is above the rate of inflation.
The survey also found that 48% respondents were not aware of the amount required for life after retirement, and 69% from this group ended up making no retirement plan at all.
The survey also found that 65% of Indians say that retirement planning advice from employer would increase loyalty to the organization.

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