‘Retirement is a pause and not a stop.’ is the present angle of Indians in the direction of one of the vital essential milestones of their lives. This was revealed in a brand new examine to grasp folks’s angle in the direction of retirement planning.
The findings of ‘Is India prepared for retirement?‘, a study by ICICI Prudential Life Insurance, showed that retirement is viewed positively as a time full of possibilities.
Continuing with the current lifestyle into their retirement is the topmost priority, as indicated by 83% of respondents.
Over three-fifths of the respondents indicated that their retirement goals include enjoying life, staying connected with friends, travelling abroad, feeling financially secure, and having peace of mind in this new chapter of their lives.
The report said that currently 11% of total income is channelled towards retirement-specific savings. The survey also revealed that the respondents consider an average corpus of Rs 65.4 lakh as ideal for retirement.
Retirement is seen as a time when one can make a fresh start and live life the way one wants to. A large number of individuals view it as a phase of maintenance, upgradation, and growth.
Though the phase of retirement evokes positive emotions among respondents, at the same time, they are also cognisant of the need to factor in inflation and rising medical expenses while planning for their life’s new chapter. This, some felt, might impression their lifestyle, the report stated.
Also Read: (*65*) Planning: Why Investing Early Is Important For You?
Over two-thirds of these surveyed have talked about, they fear about inflation impacting their retirement financial savings, and consequently, their way of life. At the identical time, 67% of the respondents highlighted the necessity to have enough retirement corpus to care for medical bills if caught with a terminal sickness throughout their retirement.
To put together for retirement, people are recognising the significance of merchandise which can be risk-free and provide assured returns for all times, akin to annuity plans.
Annuity plans are particularly designed for retirement and supply common life-long revenue for self and partner. The survey additionally revealed a excessive curiosity in investing in annuity plans amongst 65% of respondents who haven’t invested in annuity plans up to now.
The findings revealed the emergence of a second entrance, i.e. a set of people who’re effectively ready to guide a financially unbiased retired life. They begin investing for retirement even earlier than they flip 40 and put apart a mean of 17% of their revenue in the direction of retirement. They make investments primarily in NPS and retirement/annuity plans, moreover mounted deposits, to develop into retirement-ready.
Manish Dubey, chief advertising and marketing officer, ICICI Prudential Life Insurance, stated, “India’s retirement inhabitants is rising quickly and is projected to point out a 41% enhance by 2031. Additionally, with rising life expectancy, a big section of individuals shall be in search of options to plan for an extended retirement.”
“In our research, we found that more individuals are now viewing retirement as an opportunity to explore their interests, follow their passions, and spend time with family and friends. Retirement planning is a long-term process, hence individuals should start saving towards this goal as early as possible. This will enable them to generate adequate regular life-long income.”
As per the findings of the examine, 65% of individuals surveyed expressed their intent of investing in annuity merchandise as a part of their retirement planning course of. In distinction, solely 32% of respondents have really invested in annuity merchandise, highlighting the hole in retirement planning.
Retired people search for common revenue devoid of market volatility.
ICICI Prudential Life Insurance, in affiliation with Quantum Consumer Solutions, surveyed over 1,100 people to grasp the shoppers’ attitudes towards retirement, cash, and annuity plans.
The survey supplied insights from numerous views, together with authorities staff, personal sector staff, businessmen, self-employed, and retirees throughout the age bracket of 45 to 75 years from cities with a inhabitants of greater than 2 million.
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