Once touted as the next global economic powers, the BRIC countries (Brazil, Russia, India, and China) face challenges in retirement preparedness when compared to other big economies. While the four countries show great promise in certain respects, they also face significant challenges moving forward. The Natixis Global retirement index 2016 report shows India has a favourable economic outlook, although it still has to overcome a host of other challenges.
The Global Retirement Index is a comparison tool that provides a global benchmark to evaluate and compare the preparedness of countries in meeting the needs and expectations of retirees worldwide. It is measured on four parameters:
- Material wellbeing: examines retirees’ ability to live comfortably in retirement
- Health: evaluates retiree access to quality health services
- Finances in retirement: considers access to quality financial services and the ability to preserve savings
- Quality of life: focuses on whether a country can provide a clean, safe environment in which to live
The current index includes altogether 43 countries comprising the International Monetary Fund advanced economies, Organisation for Economic Cooperation and Development and BRIC (Brazil, Russia, India, and China) countries.
India ranks 43rd in the retirement index with an overall score of 44%. Among the countries surveyed, India struggles to keep up; ranking last in the Health and Quality of Life sub-indices (4%), second last in Finances in Retirement (49%) and third last in the Material Well-Being sub-index (18%). As compared to last year, India’s slight positive change in score is because of comparatively insignificant changes in the Health and Finances sub-indices.
India improved its score in the non-insured health expenditure, governance and interest rates indicators. India’s scores in the Finances in Retirement sub-index are much closer to the other countries, unlike the other sub-indices where it lags by big margins. India performed extremely well in old-age dependency and tax pressure under Finance in Retirement sub index.
India scores especially poorly in Health with a score of just 4% – the lowest score in all sub-indices and one that contributes to its coming last in this year’s GRI. India’s dismal performance in this sub-index is highlighted by the fact that the second worst performer in Health, Russia, achieves a score of 40%. A whole range of problems plague India’s healthcare sector – a chronic shortage of hospital beds and qualified medical professionals, low coverage of health insurance, and underdeveloped infrastructure in healthcare (health IT systems, etc.) are just a few of the things India needs to improve to provide adequate healthcare to its citizens.
