More Indians Feel Ready for Retirement, But Money Worries Linger
Newzdaddy Business Updates
Mumbai, November 6, 2023: Many Indians are feeling better prepared for their retirement, according to a survey by PGIM India Mutual Fund. The survey shows that 67% of Indians now think they are ready for retirement, up from 49% in 2020.
In the past, retirement was mainly about fulfilling family obligations. But now, people see retirement as a way to take care of themselves, explore their interests, and find their self-worth. The survey suggests that Indians are looking for financial security without giving up their dreams and lifestyle.
The COVID-19 pandemic has had both positive and negative effects on how people view money. On the positive side, money is seen as a safety net and a way to achieve personal goals. On the negative side, poor money management can lead to social embarrassment and stress.
PGIM India Mutual Fund conducted the survey with over 3,000 Indian participants in metro and non-metro cities. It aimed to understand how the pandemic influenced people’s financial behaviors and attitudes.
Key findings from the survey:
- Indians are allocating more money to household expenses and paying off loans.
- People are also investing in skill development and education.
- Many respondents said the pandemic changed their financial habits and made them more disciplined.
- As income increases, people focus more on career growth and passive income sources.
- Retirement planning is now about self-identity and self-worth.
- People are worried about a lack of alternate income sources and inflation.
The survey shows that mutual funds are gaining popularity among Indian investors, but many still prefer fixed-income investments and insurance.
People believe they need 10-12 times their annual income for a comfortable retirement, up from 8-9 times in 2020.
Fewer Indians feel financially secure in joint families, and having an alternate income source increases retirement readiness.
Many people seek financial advice from insurance agents, but not many have a written financial plan.
The survey also revealed that financial anxiety affects productivity for many people.
Organizations can help employees with retirement planning, leading to greater loyalty and productivity.
Mr. Ajit Menon, CEO of PGIM India Mutual Fund, highlighted the importance of self-identity and self-worth alongside family responsibilities.
Dr. Sagneet Kaur, SVP at PGIM India Mutual Fund, stressed the need to understand and address behavioral biases in long-term financial planning.
This survey indicates that more Indians are thinking about their retirement, but there are still financial concerns that need attention.