A recent survey conducted by DBS-Manulife on ‘Planning for a successful retirement’ shows that Indians start to plan for retirement at the age of 40 and retire after 60 years of age.
The online survey was conducted among 1,004 respondents - 538 men and 466 women; 642 respondents were in the age group of 40-49 years and 362 in the age group of 50-60 years. The survey was carried out in Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata. Those with personal income of over Rs. 1 lakh or AUM of Rs. 30 lakh were considered affluent; 322 respondents were from this category and 682 were from the mass or emerging affluent category.
The report shows that people set aside 26% of their monthly income, an average of Rs. 22,437 to save for retirement.
The survey found that a majority of people in metros have started planning for retirement. Bangalore leads (83%) other cities when it comes to preparedness for retirement. After Bangalore, residents of Delhi (82%), Mumbai (79%), Chennai (77%), and Hyderabad (69%) and Kolkata (66%) have also started planning for retirement.
Reasons for starting retirement planning
The survey asked respondents what made them start planning for retirement. One in two felt the need to secure financial future as one of the biggest reasons to start retirement planning. The top five reasons to plan for retirement are:
- To secure my future financial needs (50%)
- To take care of myself (47%)
- To help me maintain my lifestyle post retirement (44%)
- To take care of my wife / spouse (41%)
- Want to receive a steady income post retirement (39%)
Only 16% respondents have no intention to retire completely and said that staying active is the main reason for remaining in the workforce, finds the report.
