India’s Retirement Index up 3 points due to increasing health awareness

There is growing awareness about retirement planning in urban India, although there continues to be under preparedness, a new survey has found.

India Retirement Index Study 3.0 increased by three points to 47 from the previous survey as awareness about health insurance increased. “The improvement in the retirement preparedness comes at the back of a significant rise in health awareness that has moved 3 points to 44 in IRIS 3.0, from 41 in IRIS 2.0,” said the study released on Thursday.

The survey, conducted by Max Life Insurance Company in partnership with KANTAR, had 2,093 respondents across 28 cities and comprises three sub-indices mapping health, finance and emotion.

Significantly, for the first-time retirement preparedness among urban Indian women is at par with men.  Similarly, millennials, who were surveyed for the first time, revealed better preparedness for retirement than other age brackets.

IRIS 3.0 reveals that urban Indians increasingly equate retirement with a stress-free life. “Viewing retirement as a harbinger of positive life change, the retirement sentiment in Urban India has increased to 73 (+3 from IRIS 2.0),” said the statement.

“The survey revealed that health is the most important priority with 59% Indians prioritising it while focussing for retirement, with only 33 per cent considering finances as an important lever and 8% focussing on emotional support,” said Prashant Tripathy, Managing Director and CEO, Max Life.

However, the study reveals that nine in 10 urban Indians above the age of 50 years regret not starting saving for retirement earlier. More worryingly, one in three believes their savings will last only five years after retirement.

“India is under protected for retirement corpus,” Tripathy noted.

When asked about the demand of life and health insurance post the Covid pandemic, Tripathy said that starting this fiscal, there is good traction in the sale of pure term insurance for the company. Google searches, which indicate customer queries and demand, have also increased. “The impact of Covid and base effect is behind us,” he said.

Soumya Mohanty, MD and Chief Client Officer, South Asia, Insights Division, Kantar said, “The India Retirement Index Survey presents an insightful perspective into how urban Indians envision and plan for retirement. Over the past three years, the survey has played an instrumental role in uncovering the degree to which Indians feel financially, physically, and emotionally prepared for the retired life.