Retirement saving: only 1/3 Indians invest timely

 Just a third in India regularly save for their retirement, although, according to a survey, a comparable 33 percent of working-age respondents worldwide set little aside for their later lives.

According to HSBC's 'Future of Retirement: Bridging the Gap' study, the lack of savings is likely to be due to low awareness of how much capital is required in retirement, as well as those who prioritise their immediate financial condition over preparing for their older years.

Thankfully, for us, retirement is no longer a brief time tackled at the end of our lives. It can be a lengthy and very satisfying part of the life of a human.

But with that, our 65 needs can be very different from our 75 or 85 needs, with very different financial consequences," said Ramakrishnan S, head of retail banking and wealth management at HSBC India."

Ipsos conducted online research for this study on behalf of HSBC among 16,000 adults in 16 markets, including Australia, Argentina, Canada, China, Malaysia, Mexico, Singapore, Taiwan, France, Hong Kong, India, Indonesia, Turkey, the United Arab Emirates, the United Kingdom and the United States.

It showed that only 19% of people of working age are saving for potential home fees for nursing or treatment. This is despite half (51 per cent) respondents continuing to be worried while retired about providing residential care, it added.

In the meantime, the study found that over half of working-age individuals (56%) live financially on a regular basis, while a further 53% only save for short-term goals.

Nearly half (45%) even agree that they prefer spending on enjoying today instead of saving for tomorrow, it added.

Many people who do not regard their older years as 'retirement' could also be related to the lack of saving, with more than two-thirds of working-age individuals (69 percent) planning to continue working to some degree and more than half (54 percent) hoping to start a company or new venture, it said.

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