Retire Smart, Not Sorry

Retirement planning is now the predominant financial priority for Indians. However, readiness for retirement has declined sharply. The key is to not procrastinate, but start planning today

- LARISSA FERNAND

The PGIM India Mutual Fund Retirement Research Report has thrown up an interesting insight. Retirement planning is the predominant financial priority for Indian families. Looking at the past retirement surveys, it is noted that retirement planning was ranked eighth in terms of priority in 2020, and now claims the top spot in 2025.

Ironically, readiness for retirement has declined sharply. In fact, this gap between aspiration and action is the defining insight of this report. Only 37 per cent have a retirement plan today, compared to 67 per cent in 2023. A large number (63 per cent) of respondents do not have a retirement plan in place.

This article is targeted at all those who do not have a retirement plan in place.

Do NOT Play The Victim

The amount of control you believe you have over your situation will strongly influence your retirement planning behaviour. As per the survey, only 14 per cent believe they fully control their fate, while 32 per cent feel they mostly control life. These individuals are more likely to plan because the future feels actionable and under their control.

The rest attribute control largely to external forces. A victim mentality will prevent you from taking ownership of the situation. It unconsciously creates a psychological distance in your mind tricking you into believing that you cannot influence the outcome. Hence, planning seems futile.

Don't just assume things will work out, or things won't work out. Take professional help and get started. Proactive financial behaviour works in your favour.

Do NOT Postpone Planning

The psychological distance narrows with age, but this can be frightening if it is too late for optimal compounding. For those under 30, the focus is on travel, gadgets and marriage. Retirement planning is something they will do when they get this out of the way, or something they will start around 35.