Is Rs 65.4 Lakh Enough to Retire in India? You Won’t Believe the Answer!
Retirement is an inevitable phase of life, and it’s essential to plan for it early on to enjoy the golden years of life. But how much money do you need to retire in India while maintaining your current lifestyle? According to a recent survey by ICICI Prudential Life Insurance, many Indians consider Rs 65.4 lakh as an ideal amount for retirement.
Retirement Goals: Enjoyment, Connection, and Financial Security
Retirement is now being viewed positively as a time full of possibilities. As per the survey of over 1100 individuals by ICICI Prudential Life Insurance in association with Quantum Consumer Solutions, a large number of individuals view retirement as a phase of maintenance, upgradation, and growth. Over three-fifths of the respondents indicated that their retirement goals include enjoying life, staying connected with friends, traveling abroad, feeling financially secure, and having peace of mind in this new chapter of their lives.
Top Concerns: Inflation and Rising Medical Expenses
Most individuals are cognizant of the need to factor in inflation and rising medical expenses while planning for their life’s new chapter. Inflation, some felt, could impact their standard of living. Over two-thirds of respondents who participated in the survey said they worry about inflation impacting their retirement savings, and consequently, their lifestyle.
Medical expenses during retirement are another big concern for retirees. 67% of the respondents highlighted the need to have adequate retirement corpus to take care of medical expenses if stuck with a terminal illness during their retirement.
Saving for Retirement: Current Scenario
The survey found that currently 11% of the total income of the respondents is channeled toward retirement-specific savings. Most of the respondents consider an average corpus of Rs 65.4 lakh as ideal for retirement. However, it’s crucial to remember that retirement corpus requirements are different for everyone based on their lifestyle, family responsibilities, and other factors.
India’s Retirement Population: Growing Rapidly
“India’s retirement population is growing rapidly and is projected to show a 41% increase by 2031. Additionally, with increasing life expectancy, a large segment of people will be looking for solutions to plan for a longer retirement,” said Manish Dubey, Chief Marketing Officer, ICICI Prudential Life Insurance.
Final Thoughts
Retirement planning is an essential aspect of financial planning. To ensure a comfortable and financially secure retirement, it’s crucial to start planning early, factor in inflation and rising medical expenses, and have a realistic retirement corpus goal. With a positive outlook towards retirement and the right financial planning, retirees can enjoy fulfilling and satisfying second innings.