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A PGIM Mutual Fund report, PGIM Retirement Survey Report 2023 reveals that majority of investors expect their advisors to generate better returns from their investment portfolio.
Other key expectations are reducing the risk of losses, helping them build diversified portfolio, reducing workload on managing money. The report said, “We found that getting better returns is the most important aspect that investors value if they take advisory services, followed by reducing workload of managing money. The percentage of respondents who want others to manage their money to reduce their workload on managing money has almost doubled to 54% in 2023 from 24% in 2020.”
Let us look at other key findings of the report:
- Only 24% of those who have a retirement plan have invested in mutual funds though the figure has increased from 2020 where only 14% of those who had a retirement plan had invested in MFs
- 55% people think that generating maximum returns is the best way to generate more wealth. This view is held by those who were not prepared for retirement and by millennials.
- A majority of those, who reported to have a retirement plan, have taken financial advice from insurance advisors (62%), followed by MFDs (15%) and registered financial advisor (10%)
- The proportion of consumers from the low-income group (Rs.20,000-Rs.50,000) who have a retirement plan has increased significantly from 49% in 2020 to 67% in 2023
- On an average, the corpus required for retirement after leaving a primary job has gone up from Rs.50 lakh in 2020 to Rs. 73.44 Lakhs in 2022
- 56% respondents cited inflation as the main reason for concern post-retirement followed by health, cost of living, economic slowdown and lack of support from family
- 48% respondents say that post pandemic, they have started putting more emphasis on long-term commitments like medical emergencies and retirement planning, in addition to family security
PGIM India Mutual Fund conducted a survey among 3009 Indian adults aged 26-60 years inclusive of both Men (80%) and Women (20%). The survey was conducted in 15 cities (Metros: 60%, Tier 1: 40%) across India.
