It is important to start saving early for retirement. In a recently-concluded study, it was revealed that a vast majority of people (90%) wish they had initiated retirement savings earlier, underscoring the significance of proactive financial planning.
The study also revealed that Western India shows the least sense of security towards a peaceful retirement life compared to other zones.
The India Retirement Index Study (IRIS), carried out by Max Life Insurance in partnership with Kantar, also revealed deep insights into the preparedness to live a healthy, peaceful, and financially secure retired life of urban Indians living in the country’s western zone.
According to the IRIS 3.0 findings, western India’s Retirement Index (on a scale of 0 to 100) has dropped from to 46 points from 47 in IRIS 1.0.
All the other regions have shown a positive index movement in retirement preparedness - northern India’s index rising from 41 to 44 points; eastern India’s index significantly moving from 44 to 52 points, and southern India’s index improving from 40 to 46 points.
V. Viswanand, Deputy Managing Director, Max Life said, “The findings of the third edition of annual retirement study have shed light on the unique retirement challenges confronting Western India’s urban population. This zone in particular feels least secure in retirement, with 9 out of 10 individuals regretting not initiating their retirement planning earlier.”
Outlook towards retirement
Despite the aspirations of a comfortable retirement, western India demonstrates the least sense of security towards a peaceful retirement life compared to other zones.
Additionally, only 6 in 10 individuals in the region are aware of the required funds needed to maintain their current lifestyle during retirement, highlighting a gap in financial knowledge.
Moreover, nearly 8 in 10 respondents believe the retirement age in India should be extended beyond 58 or 60 years, indicating a growing concern of longevity risk.
As per IRIS 3.0 findings, an overwhelming 90 percent respondents wish they had initiated retirement savings earlier, highlighting the significance of proactive financial planning
The aspiration of a stress-free retirement life has experienced a significant decline in the region, plummeting from 19 percent in IRIS 2.0 to 10 percent in IRIS 3.0.
This drop reflects a growing realisation of the challenges associated with retirement preparedness in the region, and the need for robust planning to ensure financial security and peace of mind during one’s golden years.
Dependence on children
The findings also reveal a noticeable increase in the region’s inclination to rely on their children for care and financial assistance during retirement, with this sentiment rising from 21% in IRIS 2.0 to 27% during IRIS 3.0.
However, it’s noteworthy that only 42 percent of respondents express a sense of security regarding family support during their retirement years, which is the least across all regions.
Furthermore, it is striking that one in every two individuals surveyed wishes to stay with children during retirement.
This suggests a strong desire for close familial bonds and possibly indicates the belief that living with children will provide both emotional and financial support as they age.