People are living longer. Meanwhile, a lack of planning, the global economic crisis, and unexpected events have all conspired to lower the retirement income for many retirees.
Recently, HSBC conducted a survey titled ‘The future of retirement – Life after work’, to study what people wanted to get out of their retirement, and how important financial security was to those plans. The findings from this global survey, that included India among 15 countries with a total of 16,000 respondents, do not paint a pretty picture…
Here are some of the findings of the survey:
- The next generation of Indian retirees believe that their retirement savings are expected to last for an average about 10 years after their retirement, and leave them in shortage for another 5 to 12 years at least
- 66% of Indian retirees saw their post-retirement income drop; for 1 in 5 retirees, the drop was almost 50%
- More than half of Indian retirees found their expenses in retirement were the same or greater than before they entered retirement
- 50% of Indian retirees had to cut down on their everyday spending as their savings was lower than expected. A fifth of them were worried their health might suffer as a result
- The expectation that inheritance will fund retirement is most prevalent in India with over fifth of the respondents in India hoping that inheritance will entirely fund their retirement! Of the non-retirees who did receive an inheritance, only 36% say it made saving for retirement easier.
- 57% of global retirees say that they wished they had saved more for retirement
There is some good news as well…
Of the people who were surveyed, those who had made financial plans and sought professional advice said that they were better prepared for retirement than those who hadn’t.
So start planning today!! In a case you are ready to take the next step in developing your financial plan but don’t know how/ where to begin, consult an expert.