FROM SAVINGS TO SECURITY: HOW INDIANS ARE PREPARING FOR THEIR SUNSET YEARS

The Outlook Money - Toluna Retirement Survey conducted in December-end 2023 threw light on how Indians plan and save for retirement. A growing number of Indians now understand the necessity of retirement planning, and want to enjoy their retirement years with kith and kin

- Kundan Kishore

Until recently, most Indians considered retirement to be a distant goal and often overlooked it with other goals, such as children’s education, taking precedence. However, with the growth in financial literacy and awareness, more people are now understanding the importance of retirement planning. We attempted to gauge the preparedness of individuals across India for this goal and conducted an online survey, the Outlook Money – Toluna Survey on Retirement, along with Toluna India. The survey comprised 1,735 interviews across 20-plus metro and non-metro cities (see Research Methodology).

The survey revealed that most people agreed that retirement planning should commence around the age of 35 years. Early planning is important, as people who plan early stand to gain over those who do not. This is because with the increase in longevity, they could find themselves in penury in their retired years due to lack of adequate planning in the working years. The sooner they begin to save for retirement, the lesser they will need to invest to reach to the required retirement corpus. The survey also revealed other trends about how people plan for their retirement and how much and where they save for this goal.

RETIREMENT AT AGE 60

The age at which you want to retire is crucial. It will help you plan your retirement well in advance.

In India, the current retirement age set by the central government is 60 years. Until 1998, the retirement age for central government employees in India was 58 years. However, the Fifth Central Pay Commission, in May 1998 recommended increasing the retirement age of central government employees to 60 years. Half of the respondents in the survey expressed their desire to retire at age 60.