67% of Indians have a retirement plan in place: Survey

In a recent Retirement Survey conducted by PGIM Asset Managers, the findings reveal a significant positive shift in retirement planning among respondents in India. According to the survey, 67% of participants claim to have planned for retirement, marking a substantial increase from 49% in the 2020 survey.

Ajit Menon, CEO at PGIM India Asset Management highlighted the encouraging aspect of this shift, stating, "The jump from 49% to 67% is very encouraging when it comes to India."

Comparing these statistics globally, he pointed out that in a 2023 poll conducted by PGIM in the United States, 70% of individuals were planning to retire but didn't feel ready. In contrast, the Indian respondents seem more prepared, with 67% feeling ready for retirement.

One notable trend identified in the survey is the increased focus on self-identity in financial planning. Menon observed a shift from solely considering family responsibilities to individuals asking, "What about me?" This change indicates a desire for control over finances without compromising personal aspirations.

The survey also shed light on the importance of secondary sources of income for retirement confidence. Participants with additional income streams, especially those derived from financial investments, expressed greater confidence in their financial future. Interestingly, 39% of respondents beyond the initial 36% are considering establishing a secondary source of income, emphasizing its critical role in financial security.

Also, the findings showed that investments in mutual funds have jumped to 23% from 10%.

However, Menon expressed concern about the low percentage (1/3) of individuals seeking formal advice from financial advisors. He noted the dominance of insurance advisors or agents (75%) over mutual fund distributors or registered investment advisors. This highlights a significant gap in seeking professional financial guidance within the investment landscape.