Only 33% Indians save regularly for retirement, says HSBC report
What's the story
Only a third in India are regularly saving for retirement while just 33% of working-age respondents globally put anything aside for their later life, a report revealed.
It's likely linked to low knowledge of how much money is needed in retirement, as well as many prioritizing their immediate financial situation over planning for their older years, HSBC's "Future of Retirement: Bridging the Gap" report.
Subheading
Retirement can be very fulfilling part of life: HSBC official
"For many, retirement is thankfully no longer a short period tacked on to the end of our life. It can be a long and very fulfilling part," HSBC India, Head of Retail Banking and Wealth Management, Ramakrishnan S said.
"But with that, our needs at 65 can be very different from our needs at 75 or 85, with very different financial implications," he added.
Information
Many people don't consider older years as 'retirement'
The lack of saving may also be linked to many people not considering their older years as "retirement" at all, with 69% of working-age people expecting to continue working to some extent and 54% hoping to start a business or new venture, the report said.
Research
Online research carried out by Ipsos on behalf of HSBC
On behalf of HSBC, Ipsos conducted online research among 16,000 adults in 16 markets, including Australia, Argentina, Canada, China, Malaysia, Mexico, Singapore, Taiwan, France, Hong Kong, India, Indonesia, Turkey, UAE, UK, and the USA.
Only 19% of working-age people are saving for future nursing/care home fees, it revealed.
This is despite 51% respondents claiming to be concerned about affording residential care when in retirement.
Retirement
A generally positive view of retirement across the globe: Report
When it comes to knowing the amount of money they will need in retirement, as many as 65% of working-age respondents said they were aware of the cost of typical residential home fees.
Most working-age people are looking forward to greater freedom away from the nine-to-five (76%), taking up new hobbies and interests (72%) and getting fit (%), it added.
Data
56% of working-age people live on a day-to-day basis financially
Meanwhile, the HSBC report found that 56% of working-age people are living on a day-to-day basis financially, while a further 53% only save for short-term goals. Almost 45% also admit they prefer spending on enjoying today rather than saving for tomorrow, it added.