HSBC’s latest survey ‘The Future of Retirement series ‘Generations & Journeys’ reveals that a large number (47%) of working age people in India have either not started saving for retirement or have stopped or faced difficulties while saving for their future. This is higher than the global average (46%), derived from the 17 countries covered by HSBC in the survey.
The survey shows that an alarming 44% of working age people in India who had started saving for their retirement have stopped or faced difficulties. Further, the report also found that more than one-fifth (21%) of the working age population surveyed have not even started saving for retirement while 22% of people aged 60 and over and 14% of people in their 50s have not started to save for retirement.
The study also found that one in ten (10%) of working age people have never received professional advice or information about retirement. Interestingly, friends and family were the most common sources of retirement advice. 80% of pre-retirees and 82% of retirees sought advice from friends and family. Only 40% of pre-retirees and 53% of retirees have received retirement advice and information from professionals (financial advisors, government agencies, insurance brokers, bank advisors, etc.).
The respondents said that in hindsight they would have done things differently for their retirement planning. Many retirees said that they should have started saving earlier for retirement. Over two in five (41%) pre-retirees said that they would have started saving at an earlier age, as would 38% of retirees. Looking back, a quarter (25%) of pre-retirees said that they would have obtained professional financial advice, as would 23% retirees.
In a press release, S. Ramakrishnan, Head of Retail Banking and Wealth Management, HSBC India said, “Financial security for our families should be a priority through all stages of life. While it is important to start saving early for retirement, it is equally important to ensure continuity when faced with difficulties or challenges in saving. Also, while informal conversations with friends and family can be useful, people should supplement this with professional financial advice. This will ensure that people have a proper understanding of their current and future financial needs to plan effectively for a comfortable retirement in an ever-changing world.”
The survey was conducted in 17 countries among 18,207 people.
