61% of working population in India aged 45 and above want to retire in the next five years, shows the latest HSBC report titled ‘The Future of Retirement Healthy New Beginnings.’ The report shows that 64% of working age women aged 45 and above are more likely to want to retire in the next five years than men (54%).
However, 14% of them believe they will be unable to do so. Of those unable to retire, 71% said that they cannot retire as they would struggle financially. The findings of this study bring out an urgent need for Indians to begin saving early and planning well for their retirement. Also, 40% of pre-retirees believe that poor health will make saving for their retirement more difficult.
The study found that of the 45+ working population who would like to retire but are unable to due to financial constraints, 53% say this is due to not having saved enough, 42% say it is because they have dependants who rely on their income and 17% cannot retire as they have a lot of debt.
In a press release, S. Ramakrishnan, Head of Retail Banking and Wealth Management, HSBC India said, “People worldwide are recognising that retirement can be an opportunity for reinvention and new beginnings. Yet financial barriers are preventing many people from retiring when they would like to – or, in some cases, at all. Almost one in five people fear that they will never be able to retire fully, so the need for sound financial planning is stronger than ever.”
The report also reveals that in India, 43% would like to retire in the next five years to spend more time with their family. Others want to travel and pursue other interests (34%) or pursue another career or voluntary work (20%). “People should consider these aspirations when planning for retirement and ensure they are making sufficient financial provisions for this new chapter in life. Even small amounts saved today can lay the groundwork for a comfortable retirement tomorrow, placing retirement dreams squarely within reach,” adds S. Ramakrishnan.
However, 59% cited work related pressures and issues as the reason for wanting to retire. The report says that 27% of pre-retirees aged 45 and above who would like to retire say it is because work is having a negative impact on their mental and/or physical health.
The survey was conducted in 17 countries among 18,000 people.
