Previous generations may have tagged retirement as ‘end of work’ but modern day retirees prefer working even after retirement, reveals a retirement survey titled ‘Aegon Retirement Readiness Survey’ conducted by Aegon.
Rajesh Hattangady of Thiink says, “Many of our clients have told us that they would prefer to continue working post-retirement. People now-a-days are not willing to sit idle with no work. They feel that engaging in some activity will be more relaxing.”
The survey studied the changing retirement landscape, saving habits and retirement aspirations and expectations of people of 15 countries including India. Overall, the survey covered 16,000 respondents (1,000 Indians) in 15 countries with India scoring 7 out of 10 in the Retirement Readiness Index. Of the 1,000 Indian respondents, 900 were working and 100 were retired.
Higher risk appetite
Those who retired few decades back typically invested in risk-free investments such as bank FDs, PPFs, bonds and debentures as a primary means to save for retirement.
With the stock markets maturing, people are willing to take risks by buying stocks and investing in market linked product like mutual funds to fund their retirement. As a result, people expect that with changing economy, there will be a simultaneous improvement in their financial situation too. “Nearly two-thirds (65%) of respondents expect the economy to grow better over the next year while 64% expect their own financial situation to get better in the same period.”
Youngsters
The survey revealed that Indians, particularly the youth, are more confident about their retirement planning as compared to other nations. About 76% of young respondents in the age group of 18-24 years feel their financial situation will get better as compared to 52% globally.
Nikhil Kothari of Etica Wealth Management says, “Youngsters are curious to know where to invest to generate good returns. Unlike our older generations, not many did really bother to invest for their retirement. This trend is changing now.”
Vishal Dhawan of Plan Ahead Advisors says, “Indians still do not prefer to talk about money in public. This mind-set has undergone a radical change where youngsters are now willing to adopt financial services linked to market in order to have a secure future.”
Women
80% of younger women are more positive than young men and expect their financial situation to improve over the next twelve months. However, they are less confident when it comes to planning for retirement. According to the survey, women are likely to both need financial support in retirement as well as provide support to others. About 66% of Indian women expect that they will need financial support from their family during retirement while 80% of retired women are currently supporting their family members.
Shifali Satsangee of Funds Vedaa had earlier told Cafemutual, “Women in India are generally dependent on their family members to take care of them. They are more risk averse than men. In India, when it comes to retirement planning, most women continue to depend and rely on their family members or husbands. One should always remember that among personal financial goals one of the most crucial is the retirement goal.”
Family plays a particularly key role in Indian women’s retirement. The survey showed, most (80%) retired women currently provide financial support to family members apart from their spouse/partner, compared to 30% of retired men. Women’s reliance on family for financial support also tends to be higher than men’s. 64% of married working women say their husband will be an extremely or very important source of financial support during retirement, compared to 36% of working men.
Also read: MFs emerging as a preferred way to save for retirement: Aegon Survey
