Indians best at retirement plans: Survey
MUMBAI: Indian workers are more confident of managing retirement in 2017 as compared to three years earlier. However, they are much more worried about health in retirement compared to their global peers.
According to Aegon Retirement Readiness Survey 2017, Indians continue to be the best placed in superannuation preparedness among respondents from 15 countries. The Aegon Retirement Readiness Index (ARRI) measures the preparedness and aspirations for retirement based on six parameters — personal responsibility, awareness, financial understanding, superannuation planning, financial preparedness and incomereplacement.
Aegon has said that the survey is not indicative of the general population and is conducted among middle and high income-earning organised workers in cities.
India, with an ARRI score of 7.6, ranks higher than all 15 major economies. India is followed by the US (6.9), Brazil (6.4), China (6.3) and the UK (6.2). Spain and Japan rank the lowest with index scores of 4.7 and 5.1 respectively.
According to the survey report, in 2014, 37 per cent of Indian workers were confident that they would achieve a comfortable retirement. This has risen by over half to 57 per cent in 2017.
Interestingly, Indians have considerably different expectations to the global average as to how their retirement will be funded. Around 43 per cent of those surveyed expect the greatest portion of their retirement income to be funded by their own savings and investments. Globally, only 30 per cent of retirees expect to self-fund their retirement and expect contributions from their employers and government to keep them going.
While 60 per cent of Indian workers are habitual savers, around 25 per cent keep aside some money for retirement from their occasional surpluses. Only 16 per cent of Indian workers said that they do not save at all. This is a much smaller ratio compared to 37 per cent of workers not saving globally.
The median age at which Indian workers expect to retire is 60 years. Those in fair or good health expect to spend a further 15 years living in retirement, while those in excellent health have considerably higher expectations of living 20 years.
Source: Times Of India