Chennai Consumers lesser prepared
for
the financial and health aspect of retirement compared to other Indian metros
India’s affluent scored 72 points on the Retirement
Wellness Index, compared to the mass affluent, who scored 68 points
Chennai consumers ranked relatively lower in the “Retirement Wellness Index” compared to the other
metros, the study revealed that they were less prepared when it comes to the
financial and health aspect of retirement. Saving for unexpected events is one of top priorities
for Chennai consumers although, below the India average.
DBS Bank commissioned a Retirement
Wellness Study in India conducted by Nielsen, to build a foundation of
understanding of life after retirement desires and challenges surrounding personal,
family, social and community life.
The study was conducted
with primary focus on what DBS believes to be the 3 building blocks of a
successful retirement, namely – Health, Enriched life, Wealth.
Findings of the
study
The study found that India’s affluent and mass
affluent are relatively better prepared to tackle health concerns and are
more conscious of their health – two out of three consider themselves to be
healthy. On an average, Indians start planning for retirement at the age of 40;
while 16% Indians said that they do not plan to retire completely.
The study includes a
“Retirement Wellness Index”, which measured retirement preparedness among
pre-retirees based on three key pillars: namely health, financial and social
aspects. The Index is a weighted average of various attributes across the three
pillars, taking into account respondents’ current behaviours and expectations
towards retirement.
Overall retirement wellness index in India is at 69
points, compared to the Asia regional average of 56 points, with health having a slightly stronger impact than
social and financial aspects on successful retirement. Across the 3 pillars,
Indians are more prepared on the health aspect compared to the other Asian
countries.
This means that Indians
feel better prepared for retirement, health-wise; but are less financially
secure about retirement. While a majority of Indians realized the importance of
retirement planning, the ability to
afford their medical cost emerged as the top concern among Indians when they
retire. Further, 1 in 3 respondents were not sure how to estimate health care
costs during retirement. Nearly 1 in 2 respondents felt that it will be
challenging to cover their retirement needs sufficiently with 57% stating that
their total savings would only be able to cover less than 15 years of their
retirement needs.
Surojit Shome,
General Manager and Chief Executive Officer, DBS Bank India, said “In a market like
India which has a fast growing consumer base, such a study, provides extremely
important insights into the mindset of people when it comes to planning for
their retirement. This in turn allows us to better understand our customers and
help in fulfilling the retirement and insurance needs of several individuals
and families in India.”
On average, Indians set aside 26% of their monthly
income to prepare for retirement at 61 years of age. 93% of Indians have tried
to figure out how much to save for their retirement, yet there is a high degree
of uncertainty on how much do they exactly need.
Other key findings
include:
·
Lack of activities to occupy oneself with during
retirement was a top concern among Indians
·
Inflation, health and medicals costs are prime reasons
for Indians not being confident about their own retirement wellbeing.
·
Saving money for retirement is a top priority for
Indians, VPF/PPF is dominant source of income in retirement.
56% Indians have a VPF account
·
Most Indians plan to retire at 61 years
·
44% of the Indians who have planned for their
retirement expect their savings to last more than 15 years
·
Nearly 1 in 2 felt that it will be challenging to
cover their retirement needs sufficiently
·
On average, Indian consumers perceived that INR
32,937 per month is required to fund existing lifestyle during retirement
·
One-fourth 23% who have not started yet planning for
retirement consider 56 years of age to start retirement planning. Amongst top
barrier is need to have more savings before one could start for retirement
planning
·
The top 5 barriers for Indians not planning for
retirement were
1.
Need to save more before starting to plan for the
future
2.
Other short term financial commitments
3.
Lack of proper know how to start retirement planning
4.
High chance of uncertainties prevent from planning for
the future
5.
Unaware of the amount of money required for retirement
planning
About the DBS
Retirement Wellness Study in Asia
The DBS Retirement Wellness Study in Asia represents the views of more
than 6,000 pre-retirees on their
preparedness and expectations towards retirement. The research spans six countries:
Singapore,
Hong Kong, China, India, Indonesia and Taiwan.
Further in India the
research focused on the following six cities: Mumbai, Delhi, Kolkata, Chennai,
Bangalore, Hyderabad
A total of 1,008 Indians,
aged 40 to 60 years old, took part in the research which was conducted online
by research firm, Nielsen, in November 2015.
Demographic quotas were
set, based on age, gender and monthly household income. This is to ensure
national representation in the country.
The Study includes a “Retirement
Wellness Index” (RWI), which is a weighted average of various
attributes across the three key pillars of successful retirement, comprising
the health, wealth and social aspects. It takes into account respondents’
current behaviours and expectations towards retirement, as well as the
influence of each attribute. The RWI is calculated on a 100-point scale, the
higher the score, the better the preparation towards retirement.
About DBS Bank
DBS - Living, Breathing Asia
DBS is a leading
financial services group in Asia, with over 280 branches across 18 markets.
Headquartered and listed in Singapore, DBS has a growing presence in the three
key Asian axes of growth: Greater China, Southeast Asia and South Asia. The
bank's capital position, as well as "AA-" and "Aa1" credit
ratings, is among the highest in Asia-Pacific. DBS has been recognised for its
leadership in the region, having been named “Asia’s Best Bank” by The Banker, a
member of the Financial Times group, and “Best Bank in Asia-Pacific” by Global
Finance. The bank has also been named “Safest Bank in Asia” by Global Finance
for seven consecutive years from 2009 to 2015.
DBS provides a full
range of services in consumer, SME and corporate banking activities across
Asia. As a bank born and bred in Asia, DBS understands the intricacies of doing
business in the region’s most dynamic markets. These market insights and
regional connectivity have helped to drive the bank’s growth as it sets out to
be the Asian bank of choice. DBS is committed to building lasting relationships
with customers, and positively impacting communities through supporting social
enterprises, as it banks the Asian way. It has also established a SGD 50
million foundation to strengthen its corporate social responsibility efforts in
Singapore and across Asia.
With its extensive
network of operations in Asia and emphasis on engaging and empowering its
staff, DBS presents exciting career opportunities. The bank acknowledges the
passion, commitment and can-do spirit in all of our 21,000 staff, representing
over 40 nationalities. For more information, please visit www.dbs.com
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