For most Indians, until recently, short- and medium-term goals, like children’s education, buying a car or an expensive but useful piece of home appliance or an electronic device, took precedence over long-term goals like retirement. However, with growing financial awareness, this mindset is changing as more people start to understand and pay attention to retirement planning, reveals the Outlook Money–Toluna Survey for retirement, which interviewed 1,735 people across 20-plus metro and non-metro cities in December 2023. The survey showed that most people believe retirement planning should start early because the sooner they begin to save, the less they will need to invest to reach the required retirement corpus. The survey revealed trends in how people plan for retirement and how much and where they save for this purpose.

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Here are some critical trends observed in the survey:

When To Retire

Half of the respondents in the survey said they want to retire at age 60. Also, 17 per cent of respondents in the 30-39 age group said they wanted to retire in their 40s, and 29 per cent said they wanted to retire in their 50s. Those from the non-metro cities wanted to work longer compared to the metros. For instance, the average retirement age for respondents from metro cities stood at 61.1, while for those from non-metro cities, it was 62.7.

What Is The Preparedness Level?

Seventy-five per cent of individuals,pan-India,have begun planning for retirement. However, metros showed higher levels of preparedness, with 76 per cent compared to non-metros at 72 per cent.Also, younger individuals were more prepared than their older counterparts. Seventy-nine per cent of participants in 30-39 age group began planning, compared to 67 per cent in the 50-59 age group.

How Do They Plan To Finance Retirement?

The survey revealed that most people place their trust in personal savings, at 88 per cent.They planned to finance their retirement through their own savings rather than depend on family wealth or children. They, typically, earmark around 20 per cent of the investment towards retirement goal.

Do They Take Expert Help Or DIY?

Among those who have started planning for investment, 64 per cent said they took expert help, with the rest planning it on their own. Gender-wise, more women (66 per cent of the total 513 surveyed) said they took the help of financial experts, compared to men (63 per cent).As many as 40 per cent of those seeking help from financial experts, said they relied on mutual fund distributors, followed by 37 per cent who sought help from their bank relationship managers. Surprisingly, only 10 per cent availed of the services of Securities and Exchange Board of India (Sebi) registered investment advisors (RIAs). This also highlights a scarcity of Sebi RIAs. At present, there are only 1,369 Sebi RIAs available in India.

Where Do They Invest?

Mutual funds, life insurance, fixed deposits, stocks and gold were among the most preferred investment options for retirement planning, according to the survey. Interestingly, the majority of respondent preferred to invest in equity mutual funds.

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Are They Insured?

A striking 87 per cent of participants said they had invested in health insurance. Among those with health coverage, a substantial 88 per cent had policies with a cover exceeding Rs 5 lakh, with an impressive 24 per cent opting for coverage surpassing Rs 20 lakh. Concurrently, individuals prioritise a healthy lifestyle, with a notable 92 per cent admitting to leading active and healthy lives.

During Sunset Years

People prefer to stay close to their loved ones and children in their retirement years. Forty-three per cent of respondents prioritised proximity to where their children or family resided, the survey revealed, while 24 per cent preferred locations with open spaces for walking and socialising, and 17 per cent prioritise proximity to healthcare facilities.

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