51% of Indians have no plans to retire, according to a shocking survey

New Delhi, 23 October 2020 Friday

While working we are busy buying houses, cars and raising capital for children's education or marriage and do not have time to plan for ourselves. So you have to understand that raising capital for retirement is just as important as other goals. If it is delayed it will not be possible to raise enough capital and may have to go through an economic crisis after retirement. So for this goal, start your investment as soon as possible.

A survey was conducted by PGIM India Mutual Fund, a wholly owned business unit of PGIM, on the attitude of people towards retirement. The survey found that the perception that India is a country of savers is now obsolete. Urban Indians are now cutting back on savings and investments and allocating about 59 per cent of their income to current expenditure. Most people in the country do not have retirement funds. The survey found that retirement planning is down in people's priorities. So, the financial security and fitness and lifestyle of children and spouses are at the top.

The survey was conducted in 15 cities and focused on issues such as retirement planning and its awareness. The average annual income of the people surveyed was about Rs 5.72 lakh and the average age was 44 years.

The survey revealed the following:

Fifty-one percent of those surveyed have no financial plans for retirement. 89% of Indians are not preparing for retirement. That is, they do not even have an alternative source of income.

Only one in five Indians consider inflation when planning for retirement. While adding inflation is very important at the time of financial planning. For example, if your monthly expenses are Rs. 50,000 and if inflation is rising at six per cent per annum, it means you will have to spend Rs 1.6 lakh per month after 20 years. In such a situation, you have to prepare a plan through which you can make a large amount.

41 per cent have emphasized life insurance in investing for retirement.

37% highest deposit scheme i.e. Fixed Deposit Schemes (FDs) are preferred

Meanwhile, it also came out that 48 per cent of Indians have no idea how much money they will need for their post-retirement life.

Indians should focus on retirement planning so that Indians can make financial decisions efficiently and reduce their difficulties.