Around 9 in 10 people feel unprepared financially for retirement

Almost nine out of 10 Indians feel they are unprepared for retirement and do not have any alternative income, a pan-India survey by PGIM India Mutual Fund has found.

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, reported The Times of India quoting a statement by the fund house. With reduced 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,” the statement said.

The survey also showed that barely one in five Indians considers 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 focus their retirement investments on life insurance, while 37% prefer fixed deposits.

The survey also found that 48% respondents are not aware how much money is required for life after retirement, and 69% from this group end up making no retirement plan at all.  65% of Indians say that retirement planning advice from employer would increase loyalty to the organisation.

Source: Asia Insurance Review