Business Standard

East India better insured to take on retired life than other regions: IRIS

According to the findings of the fourth edition of the India Retirement Index Study (IRIS) East India outshone other regions, scoring an impressive 54 on the Retirement Index

Retirement Plan, Retirement, Pension

Retirement planning is becoming increasingly important for Indians, especially given rising life expectancy. | Photo: Shutterstock

Press Trust of India Kolkata

Listen to This Article

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, aspirations and challenges of consumers during retirement and its planning.

The study further revealed that about 72 per cent of East Indians are investing specifically for retirement even as 82 per cent of the region's investors were confident about maintaining their health through retirement.

The corresponding retirement investment figures for West, North and South India stood at 66 per cent, 60 per cent and 58 per cent respectively, officials said.

The investment figures for retirement in the eastern region rose by a significant 5 per cent compared to 67 per cent last year and life insurance remained the preferred financial product, with 68 per cent choosing it for retirement security, the IRIS 4.0 study revealed.

Notably, East India also led in National Pension System (NPS) ownership, with nearly one in four holding an NPS account. Financial product awareness among the respondents from the region was also high, with 97 per cent of individuals aware of life insurance and about 90 per cent having awareness of health insurance, the study found.

The East India survey was conducted across six urban hotspots Ranchi, Jamshedpur, Patna, Cuttack, Guwahati and Kolkata during June-July this year amid respondents belonging to the age group of 25-65 years, officials said, while claiming that the country-wide survey was conducted across 28 cities.

The IRIS findings, highlighting a strong shift in retirement readiness among the respondents in East India, claimed that around 56 per cent advocated for retirement planning before turning 35 years of age and that 94 per cent among those over 50 expressed regret for not starting earlier.

Retirement planning is becoming increasingly important for Indians, especially given rising life expectancy. It's encouraging to see people in the region prioritizing financial stability, health, and emotional well-being by starting to plan early, said Rahul Talwar, EVP & Chief Marketing Officer, Max Life.

On the issues of retirement-related anxieties, the study finds that basic needs and child support decreased in the region with fewer people worried about meeting basic requirements (62 per cent) and children's futures (64 per cent).

Health awareness, the study claims, remains strong in the East with 82 per cent of respondents confident about staying healthy through retirement. An increase in regular health check-ups also demonstrated a proactive approach to health management, the findings stated.

However, despite the robust emotional security expressed by people in the region, with nearly 95 per cent respondents expressing confidence in the support of family and friends during retirement, feelings of loneliness persisted among a significant section with some 64 per cent of people expressing concerns about it, and 76 per cent sharing worries about changing environmental factors, such as global warming and pollution, which could affect retired life.

In East India, one in every four individuals still feels that during retired life, they will have to depend on other family members, the IRIS data claimed.

The survey also revealed that as many as one in every three East Indians prioritized medical needs and children's future in their retirement plans with an overwhelming majority of respondents wishing to live close to their children post-retirement, reinforcing the importance of familial support even within nuclear households.

The findings offer a deeper understanding of evolving retirement needs and priorities, and we believe they will inspire a more proactive approach to holistic retirement planning across the country, Talwar maintained.

These findings, officials believe, will guide the insurance sector to create tailored, innovative solutions that address both the financial and health aspects of retirement.

Moving forward, our focus will be on building more awareness around early planning, enhancing retirement-specific products, and driving initiatives that foster comprehensive well-beingfinancial, physical, and emotionalduring the golden years, Talwar added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 12 2024 | 9:07 PM IST

Explore News