MUMBAI: Even as Indian employees are expecting to retire
around 60 years, 78 per cent believe that they will need to save more for
retirement, according to a recent survey.
"About 78 per cent of Indian employees recognise they
will need to save more for retirement," according to the Global Benefits
Attitudes Survey conducted by global professional services company Towers
Watson.
The report revealed that emerging economies like India and China
witness a muchhigher savings rate compared to the western counterparts like the
US and the UK.
Indian employees have the second highest savings rate at 16
per cent, second only to China, yet a large number are not confident of
affording a long spell of retirement.
This is especially noticeable among those above 50, where 86
per cent opine that they will have sufficient financial resources for 15 years
into retirement, but this figure drops significantly to 63 per cent for a
25-year retirement period.
The report further revealed that 71 per cent of people, who
have retirement plans, think they are under-saving relative to what they
ideally should save.
Saving for retirement has appeared as the top financial
priority for those above 50 and also amongst the top three across all age
groups, it found.
Amongst members of retirement plans, housing and saving for
retirement, are the top two priorities in the below 40 age group, while saving
for retirement is the top priority for those above 40.
The survey was conducted across 12 countries, covering
22,347 employees working for large, non-government employers.
It also found that Indian employees would rather save more
than extend their retirement age.
A majority 56 per cent employees would rather save more
compared to 29 per cent, who would prefer to work a few years longer, it said.
"In the face of a high inflationary environment and the
advent of nuclear families, retirement adequacy is fast emerging as a national
challenge with a serious economic and social ramifications," Towers Watson
India Benefits Director Anuradha Sriram said.
"While many remain unsettled about their post
retirement financial prospects, India has a relatively young workforce, thus
allowing them time to plan. That said, there is an evident need for the
government and employers to take cognisance of the issue and incentivise or
mandate such savings," Sriram added.
Source : http://economictimes.indiatimes.com/
