Retirement Plan

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People in Eastern India are better prepared to take on retired life than their counterparts in the country's North, South or West, thanks to their enhanced saving propensity for their future, a study reveals. According to the findings of the fourth edition of the India Retirement Index Study (IRIS), conducted by Max Life Insurance Company in partnership with KANTAR, a marketing data and analytics company, East India outshone other regions, scoring an impressive 54 on the Retirement Index, significantly higher than North and South India, both at 48, and West India at 49, as well as the national average of 49. India retirement index is the degree to which Indians feel prepared for retired life on a scale 0 to 100. It is based on how prepared the country is for a healthy, peaceful and financially independent post-retirement life, surveyors explained. The survey, according to officials, is aimed at understanding the retirement readiness of urban India, with insights into awareness, ...

Awareness about retirement planning has been rising in urban India with growing number of people feeling the need to start planning for their post-work life early, a report said. As much as 44 Indians consider the right age to start planning for retirement is before 35 years, as per the India Retirement Index Study (IRIS) released by Max Life Insurance. Encouragingly, 63 per cent respondents have already begun investing for retirement, leading to reduced concerns about meeting both basic and luxury needs, as well as securing their children's futures, it said. A notable 68 per cent of urban Indian working women have begun investing for retirement, it said. The study also highlights regional opportunities in retirement planning across India, with the east zone leading in overall preparedness, the west zone showing financial and health progress but needing emotional focus, and the north and south zones improving in health preparedness index, it said. "Although urban India's retiremen

The retirement index comprises three indices with the following weights: financial index (31 per cent), health index (61 per cent), and emotional index (8 per cent)

Rising awareness of financial planning has fueled a 256 per cent increase in retirement mutual fund AUM in the last five years, according to a report. Factors such as rising healthcare costs, increasing nuclear families, and higher life expectancy are likely to fuel further growth in this sector, an ICRA Analytics report said. "Assets under Management (AUM) of these funds have grown by over 256 per cent in the last five years, reaching Rs 29,903 crore in July 2024, compared to Rs 8395 crore in July 2019," it said. ICRA said the growing awareness has led to a surge in the number of folios, which has increased by 17.44 per cent in the last five years to 29.36 lakh in July 2024, up from 25 lakh in July 2019. The number of schemes has also increased from 21 in 2019 to 29 in 2024. A retirement mutual fund is a specialized investment vehicle designed to provide a secure and comfortable post-retirement life. These funds invest in both equity and debt, aiming to balance wealth appreciation

The fund based on market outlook, aims for steady returns through active management, diversification, and a blend of growth and value investing

Stay invested even after lock-in ends to gain from compounding

Comprehensive planning would include managing anxiety, identity loss, and loneliness; creating a comprehensive health routine; tackling social and relationship issues

The fund invests in a mix of assets, including stocks, bonds, and real estate investment trusts (REITs).

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According to the survey, Indian investors planning retirement favour fixed/recurring deposits, annuities/insurance, gold, and the Post Office Savings Scheme (POSS)

Too many loans can diminish your ability to save; spending lavishly on children's weddings can also hurt

Saving and investing more aggressively, extending work life are other strategies you may adopt

Retirement planning is not the topmost priority for urban India but they worry that savings will not be enough to cover for old age life, with only one in three actively working to meet retirement goals, according to a study. Max Life Insurance in partnership with marketing data firm Kantar conducted a survey to assess the urban salaried class' readiness for content and financially independent retired life. About 90 per cent of people above the age of 50 years in the survey regretted not starting early enough in life to save for retired life. In its second edition, the survey finds the India Retirement Index Study (IRIS) remaining at 44, pointing there is a lag in preparedness over the last one year among the urban salaried class for retired life planning. Conducted through a self-administered digital manner, the survey involved 3,220 male as well as female respondents across 28 cities, of which 6 were metro cities and 12 tier I and 12 tier II cities. Life expectancy is consistent

Making adequate provision for your spouse and yourself for a prolonged period of retirement must take precedence over distributing your wealth among your children

Higher life expectancy, inadequate retirement planning and insurance, and risk aversion are some of the key issues they feel Indian women need to address

In fact, you need to be more diligent if you're over 50 as there is a higher risk of losing your job, and in any case you have less than a decade to build a nest egg

Check whether you saved adequately during the previous financial year, your asset allocation is in sync, and you have adequate life and health insurance