The significance of retirement planning has been firmly taking root after the COVID-19 pandemic. The disease’s enormous impact on people’s health, finances, and the economy has served as a wake-up call for many Indians, particularly regarding their finances post-retirement.

The crisis has encouraged many people to start thinking about their future. According to the “PGIM India Mutual Fund Retirement Readiness Survey 2023”, there has been an 18 per cent increase in the number of people planning for retirement.

The anxiety over unexpected events, like critical illnesses, inflation, economic slowdown, job loss, etc., has triggered retirement planning. These and many other factors have changed people’s attitudes towards life after the 2020 pandemic. More people are now making plans for their financial security and are more conscious about their food, hygiene, and spending habits.   

How Are Indians Fighting Anxiety? 

The fear of financial insecurity in old age is driving more people to make plans for the future. They now want to develop different income sources for current and post-retirement expenses. The report says that people are less anxious when they have a secondary income.

Around 36 per cent of respondents in the survey have an alternate income source, and 39 per cent of the respondents said they plan to start a secondary income source soon. Twenty-five per cent of people do not have a secondary income source, and they have not thought about it either.  

The data indicates that more people consider a secondary income source an answer to fight financial anxiety. Also, around 70 per cent of the respondents with a secondary income source feel more secure financially than those who do not have another income source.

Secondary Income from Unique Skills 

Interestingly, more people are earning from their skills in 2023 compared to the 2020 survey. Around 44 per cent of respondents were found earning secondary income using their skills in 2023, compared to 39 per cent in 2020.  

Secondary Income from Investments 

The second factor that helped Indians reduce their anxiety is income from financial investments. Approximately 42 per cent of people surveyed affirm that income from their investment helps them feel less anxious. The percentage has improved significantly from 23 per cent in the 2020 survey to 42 per cent in 2023, reflecting increased awareness among people about investment and a secondary source of income to meet their financial goals.