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.

Comments

Post a Comment

Popular posts from this blog

Important rules regarding PPF: One should know

  A very good product for tax planning as well as retirement planning is the Public Provident Fund (PPF) account. Since this is supposed to be your savings income, before retirement, it is not recommended to be withdrawn. PPF rules, however, have certain provisions for you to use this cash before its maturity. Let us see how you can do this. Loan toward equilibrium in PPF account Only after your PPF account has completed one full financial year from the end of the year of its opening can you make use of the loan facility. Let us use an example to understand this. So you will only be able to take advantage of the loan from the financial year beginning April 1, 2018 if you have opened your PPF accounts at any time between April 1, 2016 and March 31, 2017. At the end of the financial year, the amount of loan you will take against the PPF account is limited to 25% of the accumulated balance previous to the year in which you made your loan application. So, as of March 31, 2017, you will
Read more

Investment essentials for women

Over time, the gender gap in workplaces has narrowed. The disparity in pay has narrowed. Day-to-day duties are shared by both men and women in most urban households. Currently, in many cases, women are breadwinners. All these are welcome signs of the financial equality of women. Financial freedom, however, is not only limited to providing a stable source of income and sharing expenses with household citizens. It is also vital to safeguard one's future and develop resources to achieve aspirations. A lot of women still rely on their male counterparts to do it on their behalf when it comes to financial planning. Regardless of your marital status, whether single or married, widowed or divorced, you have to take care of your finances in any way. Let's look at a couple of main steps women need to take to improve their financial well-being. Set and save goals accordingly. You will not be able to earn an effective return in the optimal time frame if you are only hoarding money or
Read more

International Monetary Fund forecast: COVID19 vaccines will power a stronger global economic recovery in 2021

 In Tuesday's International Monetary Fund outlook, the dissemination of COVID-19 vaccines will fuel a stronger global economic recovery in 2021. The global economy will rise 5.5 percent this year, the 190-country lending organisation projected, after slipping 3.5 percent in 2020, the worst year since World War II. The new figure for 2021 is an improvement from the IMF estimate of 5.2 percent growth in October and will mark the fastest year of global growth since the 2010 financial crisis snapback. Vaccines should contain the spread of the virus and promote lockdowns by governments around the world and enable a return to normal economic activity. But the IMF also says that economies around the world will need their governments' help to compensate for the damage caused by the pandemic and warns that coronavirus mutations could cloud global health and economic growth prospects. The IMF said in an update to its World Economic Outlook that it expects the U.S. economy, the worl
Read more