59% Indians Prioritise Health, 33% Focus On Finances In Retirement Planning: Survey

About 59 per cent of Indians prioritise health when planning for retirement, while only 33 per cent consider 'finances' as a significant factor, and eight per cent regard 'emotional support' as crucial. This data is based on a survey conducted by the India Retirement Index Study (IRIS).

The IRIS 3.0 survey revealed that 80 per cent believe they will be in good health during their retirement years. 58 per cent have opted for preventive health check-ups in the last three years, and 40 per cent seek annual check-ups to monitor their health regularly. Presently, there is a greater interest in curative and wellness options compared to post-facto treatments, with over three in 10 Indians engaging in self-care to improve their health. Notably, two in 10 individuals emphasise wellness through technology, including apps, wearables, and online consultations.

The study showed that nearly one in three urban Indians are concerned about their savings depleting within five years of retirement. Equally alarming is that 2 out of 5 individuals have not yet started investing for retirement. A significant majority believe they have enough family wealth and/or will be taken care of by their children, posing a disproportionate barrier to retirement planning. In fact, as high as 9 out of 10 respondents above the age of 50 regret not starting savings for retirement earlier. However, as a silver lining, one in two urban Indians favour prioritizing long-term savings planning at the beginning of their careers. Additionally, a majority of respondents (38 per cent) believe that retirement planning should start before the age of 35.

Regarding investment preferences for retirement goals, life insurance products lead the way with 95 per cent awareness and 75 per cent ownership levels. Moreover, the IRIS 3.0 study revealed that while 64 per cent of urban Indians are familiar with the National Pension System (NPS), only 16 per cent invest by making contributions.

Despite the continued trend of nuclear households (53 per cent), urban India's dependence on family remains high when planning for retirement. According to the survey, the majority of respondents hope to live with their children after retirement, underscoring emotional co-dependencies during this period.

The survey assesses urban India's preparedness to lead a healthy, peaceful, and financially secure retired life. For the digital study*, 2,093 respondents were surveyed across 28 cities in India.

OTHER FINDINGS

• Surveyed for the first time, millennials are better prepared for retirement than other age brackets - With a retirement index of 48 points, millennials surpass others in retirement preparedness, backed by heightened awareness of financial products at 54 points. More than 2/3rd feel secure with current savings/investments for retirement—significantly higher than other age brackets.
• Women close the gap with men in retirement preparedness - IRIS 3.0 reveals that urban Indian women are now at par with men in retirement readiness. Notably, 52 per cent of women consider retirement planning the foremost financial priority, closely followed by 48 per cent of men who share the same view. Also, 66 per cent of women are hopeful of a totally secure retired life as against 60 per cent of men. This heightened positive outlook among women reflects a growing awareness and recognition of the importance of comprehensive retirement planning.
• East India demonstrates strong retirement readiness - With a financial preparedness Index of 53, East India is better prepared for retirement, surpassing all other regions. This robust financial preparedness is complemented by East India's health index at 50 points. Basis this, East region continues to be better prepared for retirement among other zones with an overall retirement index of 52. In stark contrast, North India's health index lags at 40 points, revealing a substantial gap with other regions and the need for concerted efforts. South India’s highest emotional index of 61 points reflects strong emotional backing from family and society across the region.
• Tier II surpasses Tier I towns in financial preparedness for retirement - Backed by a refreshed focus on planning for retirement, financial preparedness in India’s tier II towns (50 points) overtakes tier I cities (49 points). While Metros lead the way in urban India’s Retirement Index at 48 points, tier II and tier I towns close the gap in retirement preparedness with 45 points.