In the latest retirement readiness survey by Aegon Insurance shows that Indians expect to live for longer years in retirement. “Indians expect to live for an average of 22 years in retirement, but the reality is that they may live even longer. Increases in longevity may result in individuals needing to work longer in order to adequately fund retirement,” says the report.
The findings of the survey are based on the responses of 14,400 employees and 1,600 retired people from 15 countries.
The survey says that working longer can also promote active living and healthy aging. Indian workers appear to be aware of this with 72 percent opting to continue working in some capacity which may involve shifting from full-time to part-time work. Over three quarters (77 percent) of workers say the ability to work past normal retirement age is an extremely or very important occupational benefit and 72 percent find phased retirement to be extremely or very important.
Among those who envision or envisioned working in some capacity in retirement, two thirds (66 percent) say that they want to do so to keep active or to keep their brain alert, 61 percent simply enjoy their work, and 28 percent will do so because working will be their primary source of income while transitioning into retirement.
While around the world many workers expect to rely heavily on government benefits, Indians may have already recognized that they cannot rely on their government and have to depend on their own personal savings and investments to fund their retirement. However, the fact still remains that Indians are still not saving enough to adequately fund their retirement income needs. The reality is that people are living longer than ever before, yet not enough attention is being given to address the costs and implications associated with increased longevity. The report concludes, “Governments, employers, and individuals must continue to expand upon actions that have proven effective while innovating new retirement solutions for the future.”