How much money do you need to retire from work but with the same lifestyle? While there can be no definitive answer to this question as everyone’s lifestyle expenses are different, a survey reveals that many Indians consider Rs 65.4 lakh as an ideal amount for retirement.
The survey of over 1100 individuals by ICICI Prudential Life Insurance in association with Quantum Consumer Solutions, reveals that retirement is now being viewed positively as a time full of possibilities. A large number of individuals view retirement as a phase of maintenance, upgradation, and growth.
Top concerns and goals
The survey reveals some top concerns of working individuals, who are saving/investing for their post-retirement life.
- As many as 83% of respondents said continuing with the current lifestyle into their retirement was the topmost priority.
- Over three-fifths of the respondents indicated that their retirement goals include enjoying life, staying connected with friends, travelling abroad, feeling financially secure, and having peace of mind in this new chapter of their lives.
- 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.
- 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.
The survey found that currently 11% of the total income of the respondents is channelled towards retirement-specific savings. Most of the respondents consider an average corpus of Rs 65.4 lakh as ideal for retirement.
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“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