India Retirement Index remains at 44 in second edition of survey; dependence on family and children continue to be major barriers to plan for retirement investment
23% Indians do not even know where to begin their retirement planning
Nearly 9 in 10 above age 50 regret not saving/investing towards retirement sooner
Strong belief in ‘earlier the better’ for majority, as 59% believe savings will be exhausted within 10 years of retirement
69% consider life insurance as the most suitable product for retirement savings
Retirement readiness highest in East Zone and Metros
Men appear to be more financially anxious than women even though Index for both remain nearly same
29th September 2022, New Delhi: Max Life Insurance Company Ltd. (“Max Life”/ “Company”), in partnership with KANTAR, today launched the second edition of the ‘India Retirement Index Study’ (IRIS). The survey assesses urban India’s readiness to live a healthy, content, and financially independent retired life. Through a self-administered digital study*, 3,220 respondents were surveyed across 28 cities comprising 6 metros, 12 Tier I and 10 Tier II cities.
While India’s life expectancy is consistently rising over the years, the survey reveals the underlying preparedness levels for retirement in the country over the last year. At 44, India’s Retirement Index (on a scale 0 to 100) reflects lag in urban India’s action on retirement planning in the one-year period. Health and financial preparedness stood at 41 and 49 respectively, while emotional preparedness witnessed a significant dip from 62 to 59 indicating increasing dependency on family, friends, and social support during retirement.
Commenting on the launch of IRIS 2.0, Prashant Tripathy, Managing Director and CEO, Max Life Insurance said, “As India’s life expectancy increases and health trends change, the country’s elderly population is projected to grow nearly 41% to 194 million by 2031 . There is also a review underway of the retirement age in India to align it with the increasing life expectancy. As industry and wider ecosystem take steps in a positive direction, the robust and well-represented study reveals that Indians are also realizing the need to plan for retirement early. However, the awareness is yet to translate into action in terms of proactively saving and investing. When it comes to retirement planning, all Indians must embrace ‘earlier the better’ philosophy and start planning at a young age, to ensure their retirement years provides them an opportunity to live a healthy and financially independent life. As we unveil the findings of IRIS 2.0, we urge India to realize the importance of timely retirement planning and encourage them to work towards securing their future.”
Soumya Mohanty, Managing Director and CCO, Insights Division, South Asia, Kantar, remarked on the findings of the survey, “IRIS 2.0 offers a compelling perspective on how urban Indians view and plan for retirement. It aims to help Indians comprehend the approach and give due importance of planning for retirement in their lives. In today’s world, it’s important to stay financially independent at all times, especially during one’s retirement years. We are pleased to partner with Max Life Insurance in safeguarding urban India’s financial security across all stages of life.”