Most Indians fear inflation, crucial sickness might damage retirement financial savings: Survey

Over two-third Indians fear inflation might damage their retirement financial savings, and consequently, their life-style, whereas 67% highlighted the necessity to have ample retirement corpus to handle medical bills if caught with a terminal sickness throughout their retirement, in line with a brand new survey.

ICICI Prudential Life Insurance, in its survey,’Is India ready for retirement?’, discovered that retirement is seen positively as a time filled with potentialities. It is seen as a time when one could make a contemporary begin and reside life the way in which one needs to. A lot of people view it as a part of upkeep, upgrading, and development.

Continuing with the present life-style into their retirement is the topmost precedence, as indicated by 83% of respondents. Over three-fifths of the respondents indicated that their retirement objectives embrace having fun with life, staying related with associates, travelling overseas, feeling financially safe, and having peace of thoughts on this new chapter of their lives.

ICICI Prudential, in affiliation with Quantum Consumer Solutions, surveyed over 1,100 people to grasp the customers’ attitudes towards retirement, cash, and annuity plans. The survey gives deep insights from numerous views, together with authorities staff, personal sector staff, businessmen, self-employed, and retirees throughout the age bracket of 45 to 75 years from cities with a inhabitants of greater than 2 million.

Though the part of retirement evokes constructive feelings amongst respondents, on the similar time, they’re additionally cognizant of the necessity to consider inflation and rising medical bills whereas planning for his or her life’s new chapter. This, some felt, may affect their lifestyle.

Currently, 11% of complete earnings is channeled in the direction of retirement-specific financial savings. The survey reveals that the respondents take into account a mean corpus of ₹ 65.4 lakh as supreme for retirement.

To put together for retirement, people are recognising the significance of merchandise which might be risk-free and supply assured returns for all times, equivalent to annuity plans. Annuity plans are particularly designed for retirement and supply common life-long earnings for self and partner. The survey additionally revealed a excessive curiosity in investing in annuity plans amongst 65% of respondents who haven’t invested in annuity plans to this point.

Interestingly, the findings reveal the emergence of a second front– a set of people who’re nicely ready to guide a financially impartial retired life. They begin investing for retirement even earlier than they flip 40 and put apart a mean of 17% of their earnings in the direction of retirement. They make investments primarily in NPS and retirement/annuity plans, moreover fastened deposits, to turn into retirement-ready.

Manish Dubey, Chief Marketing Officer, ICICI Prudential Life Insurance, mentioned, “India’s retirement inhabitants is rising quickly and is projected to indicate a 41% improve by 2031. Additionally, with rising life expectancy, a big section of individuals shall be in search of options to plan for an extended retirement.

The research discovered that extra people are actually viewing retirement as a possibility to discover their pursuits, comply with their passions, and spend time with household and associates. Retirement planning is a long-term course of, therefore people ought to begin saving in the direction of this aim as early as doable. This will allow them to generate ample common life-long earnings.

As per the findings of the research, 65% of individuals surveyed expressed their intent of investing in annuity merchandise as a part of their retirement planning course of. In distinction, solely 32% of respondents have truly invested in annuity merchandise, highlighting the hole in retirement planning.”

Retired individuals look for regular income devoid of market volatility. Annuity products offer regular guaranteed life-long income, therefore a robust retirement plan should include this product in the portfolio. “New-age annuity plans like ICICI Pru Guaranteed Pension Plan Flexi enables consumers to make regular contributions and systematically build retirement savings,” the insurer mentioned.

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