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A study on retirement done by HDFC Pension Fund reveals that Indians believe that they need Rs.1.30 crore to fund their post retirement life. However, many of them have underestimated their retirement corpus as this amount is less than 10 times of their current annual household income.
The study also reveals that people believe that 32 is the right age to start retirement planning.
Here are some other highlights of the report:
- NPS ownership is at 24%. Tax benefit (80C/80CCD) has a relatively higher appeal (35%) among those enrolled for NPS compared to all consumers (31%)
- While tax benefits, peers and financial advisors trigger NPS purchase, educating people about NPS and its features is critical to drive adoption
- Individuals who have enrolled for NPS feel more confident about their financial health during retirement years. It can thus be said that NPS ownership is a strong indicator of financial preparedness for one’s retirement years
The company did this study on National Pension System (NPS) Preference Index on the occasion of NPS Diwas. The findings are based on a consumer market research study with 1,801 NPS aware consumers across Tier I/II/III locations in the age cohorts of 30-40 years and 45-55 years.
In a press release, Sriram Iyer, Chief Executive Officer, HDFC Pension said, “On the occasion of NPS Diwas, we are pleased to unveil the NPS Preference Index, a report that puts the industry-first spotlight on the National Pension System (NPS). In an age where financial security is paramount, our commitment to empowering individuals for a secure retirement gains unprecedented strength. “
HDFC Pension fund manages AUM of over Rs. 50,000 crore in NPS.
