Business Desk, Tech for FTCP, New Delhi
Updated Fri, 23 Oct 2020 12:37 PM IST
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A survey was conducted by PGIM India Mutual Fund, a wholly owned business unit of PGIM, to see what kind of attitude people have towards retirement. The survey showed that the perception that India is a country of savers is now outdated. Urban Indians are now reducing savings and investment and allocating about 59 per cent of their income towards current expenses. Most people in the country do not have a retirement fund. The survey has revealed that retirement planning is below the priority of the people. At the same time, financial security and fitness and lifestyle of children and husband and husband are at the top.
Survey conducted in 15 cities
- The survey was conducted in a total of 15 cities and focused on issues such as retirement planning and awareness. The average annual income of the people involved in the survey was about Rs 5.72 lakh and the average age was 44 years. The following things were revealed from the survey-
- 51 percent of the people surveyed have not made any financial plan for their retirement. 89 percent of Indians have made no preparations for retirement. That is, they do not have any alternative source of income.
- Only one in five Indians consider inflation while planning for retirement. While adding inflation is very important at the time of financial planning. For example, if your monthly expenditure is Rs 50,000 per month and if inflation is increasing at the rate of six per cent annually, then it means that you will have to spend Rs 1.6 lakh every month after 20 years. In such a situation, you will have to prepare a plan by which you can raise big money.
- 41 per cent people have insisted on life insurance in investing for retirement.
- 37 per cent preferred fixed deposit schemes (FD).
- Meanwhile, it was also revealed that 48 per cent Indians have no idea how much money they will need for the post-retirement life.
Ajit Menon, CEO of PGIM India Mutual Fund said that, participants believe that they will need an amount of about Rs 50 lakh for retirement, which is around 8.8 times their current annual income. Indians should focus on retirement planning so that Indians can take financial decisions with efficiency and reduce their hassles.
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