ALMOST 70% of Indians are worried about outliving their retirement money, yet only two out of ten full-time workers opt for a retirement plan, other than what is mandated by law.
More than eight out of 10 Indians (80%) have done no retirement planning independent of any mandatory government plans, said the MetLife surveys — the study of international employee benefits trends and the sixth annual us study of employee benefits trends.
Despite worries about funding a comfortable retirement or outliving their retirement savings, many fulltime workers in developing and mature economies, have taken few or no independent steps to plan for retirement.
In India, the surveys said, “while almost three out of four employees (71%) say they are concerned about outliving retirement money, only one out of every three (35%) say they have taken steps to determine retirement need; only 20% say they have done actual planning for retirement.”
The surveys further point out that while 80% employees in India and 81% in Mexico have no retirement plans other then the mandatory ones, the number was low in developed countries like Australia (58%), the US (46%) and the UK (31%)
The MetLife surveys noted that nearly half of the Indian employees (48%) whose employers do not offer retirement benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost. By tradition, typically a family would take care of its older members, but with the geographic mobility among more young people to locations far away from their family home base, the traditional family ‘safety net’ is becoming frayed in many fast growing countries, the surveys said.
The widespread lack of independent retirement preparedness is especially worrisome in both developing and mature economies as life expectancies around the globe continue to rise and pension reforms puts more responsibility on employees to fund their own retirements, they added.
BDV-270534-BDV
More than eight out of 10 Indians (80%) have done no retirement planning independent of any mandatory government plans, said the MetLife surveys — the study of international employee benefits trends and the sixth annual us study of employee benefits trends.
Despite worries about funding a comfortable retirement or outliving their retirement savings, many fulltime workers in developing and mature economies, have taken few or no independent steps to plan for retirement.
In India, the surveys said, “while almost three out of four employees (71%) say they are concerned about outliving retirement money, only one out of every three (35%) say they have taken steps to determine retirement need; only 20% say they have done actual planning for retirement.”
The surveys further point out that while 80% employees in India and 81% in Mexico have no retirement plans other then the mandatory ones, the number was low in developed countries like Australia (58%), the US (46%) and the UK (31%)
The MetLife surveys noted that nearly half of the Indian employees (48%) whose employers do not offer retirement benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost. By tradition, typically a family would take care of its older members, but with the geographic mobility among more young people to locations far away from their family home base, the traditional family ‘safety net’ is becoming frayed in many fast growing countries, the surveys said.
The widespread lack of independent retirement preparedness is especially worrisome in both developing and mature economies as life expectancies around the globe continue to rise and pension reforms puts more responsibility on employees to fund their own retirements, they added.
BDV-270534-BDV
