Max Life Insurance Company on Friday, September 22, unveiled the findings of the third edition of its retirement survey, India Retirement Index Study (IRIS), conducted in partnership with KANTAR, a marketing data and analytics company. According to the IRIS 3.0 findings, western India’s Retirement Index (on a scale of 0 to 100) has dropped from 47 in IRIS 1.0 to 46 points now.
In contrast, all other regions have demonstrated a positive index movement in retirement preparedness – northern India’s index rising from 41 to 44 points; eastern India’s index significantly moving from 44 to 52 points, and southern India’s index improving from 40 to 46 points.
Outlook towards retirement
Regret over delayed retirement investments looms large
Western India’s path to a healthy retirement: IRIS 3.0 highlights challenges and progress
While there is a significant rise (36 percent to 45 percent) in individuals who have undertaken health check-ups 2 or 3 times in the last 3 years, there is a stark decline (from 28 percent to 17 percent) in those with regular health check-ups, indicating how despite a commendable uptick in health check-ups, there is room for improvement in sustaining regular health monitoring. This shift in behavior has led to a notable decrease in the proportion of people who feel confident about being fit and healthy during their retirement, dropping from 47 percent to 32 percent as per IRIS 3.0.
Notably, 4 in 10 respondents in western India are resorting to health-treatment-related factors, such as doctor-advised regimes, regular medications, and ad-hoc medical requirements, indicating a willingness to address health concerns proactively.
The Financial Index has seen a gradual increase, climbing from 48 in IRIS 2.0 to 50 in IRIS 3.0, suggesting an improved understanding of financial matters among respondents. Also, there has been a surge in awareness regarding government-backed financial schemes with the awareness of the Atal Pension Yojana has seen a significant increase, rising from 45 percent in IRIS 2.0 to 58 percent in IRIS 3.0. The awareness of annuities has also grown, moving from 34 percent in IRIS 2.0 to 40 percent in IRIS 3.0.
In the zone, life insurance remains the most well-known financial products, with awareness levels at 97 percent. While life insurance ownership remains relatively stable (72 percent compared to 73 percent in IRIS 2.0), there has been an increase in ownership of assets such as real estate and gold. Additionally, NPS ownership has witnessed an uplift. Unit Linked Insurance Plans (ULIP) and traditional insurance ownership have also increased considerably, indicating a diversified approach to financial planning for retirement.
Emotional dependence on children grows in Western India’s retirement trends
Emotional dependence on children as a source of support during retirement is a prevailing sentiment among individuals in western India. The IRIS 3.0 findings reveal a noticeable increase in the region’s inclination to rely on their children for care and financial assistance during retirement, with this sentiment rising from 21 percent in IRIS 2.0 to 27 percent during IRIS 3.0. However, it’s noteworthy that only 42 percent of respondents express a sense of security regarding family support during their retirement years, which is the least across all regions.
(Edited by : Anshul)
First Published: Sept 22, 2023 1:28 PM IST