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| Capitalstars Investment Advisor |
While 76% of working-age people in India expect a comfortable retirement, only 33% are putting aside money to fund it, finds the HSBC Future of Retirement study.
Not many of us are financially prepared for our life after retirement. This is something that a recent HSBC survey found.
Retirement Study found that while 76 percent of working-age people in India expect a comfortable retired life, only 33 percent are actually putting aside money to fund that phase of life. The retirement study covered 1,045 respondents in India. Here are more findings from the survey.
Inability to anticipate future financial needs is the main roadblock to planning.
45% feel it’s better to spend money on enjoying life now than saving for retirement
53% save for short-term goals rather than longer-term plans
56% live on a day-to-day basis financially, setting the stage for problems later
While almost two-thirds of working people have a financial plan in mind.
However, concerns about affording care in retirement are common
64% are worried about the rising cost of healthcare
51% worry about not being able to afford home care
49% feel they have to rely on others for support
51% feel they could run out of money in retirement
58% think they will not be able to live comfortably
Though almost two-thirds of working people are aware of the cost of living in an elderly care home, only 19% are saving for future nursing or care home fees.
Many expect help from the family network in old age
68% of working-age people expect their children to support them at some point in their retirement
30% of current retirees receive financial support from children
Receiving financial support from children may be an unrealistic expectation on the part of many.
Eight out of 10 people have a plan in mind to augment income if needed in the later years of retirement
25% say they will go back to work
25% would start a business
21% would rent out a spare room
19% would dip into savings
19% would diversify investments
15% would sell possessions
13% would sell or release equity from home
10% would seek government aid
Over two-thirds of working-age people expect to keep working in some form in the early and active years of retirement.
Most working-age people feel hopeful about retirement
54% associate it with relaxation
44% with satisfaction
41% with happiness
23% with loneliness
19% with boredom
Despite the lack of certainty and niggling worries, retirement is far from doom and gloom.
The steps to consider while planning for retirement
Moves to make to ensure a comfortable retired life:
1. Think differently
Think of retirement as a chance to pursue your passions and have new adventures. Make the most of it by planning ahead.
2. Visualize
Think about the kind of retirement you want. Having a broad idea about how you would like your retired life to be will allow you to plan effectively.
3. Ask the experts
Use free online advice or seek out professional help to plan your finances in retirement. Don’t be afraid to ask questions.
4. Be meticulous
You need to know where you can save money and how much. Use online tools like calculators and budgeting apps to help identify changes you can make to cut costs.
5. Start a conversation
If you want help from your children, talk to them beforehand. This can help manage expectations.
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