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The PGIM India Mutual Fund

Retirement Readiness Survey

2020 explores the attitude of Indians towards retirement and what it takes for them to think about retirement planning. The comprehensive, India-specific study deep dives into understanding the changing trends, attitude and solutions explored by people when embarking on retirement planning. The Retirement Readiness Survey was conducted by Nielsen, the leaders in global measurement, and the study was commissioned by PGIM India Mutual Fund, a wholly-owned business of PGIM, the global investment management business of Prudential Financial, Inc., US.
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Top 12 Highlights from the Survey

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The conventional model of stable employment and retirement by 60 is increasingly outdated

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People like to plan for happy outcomes and/or unknown eventualities and not for unhappy outcomes or known eventualities like retirement

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Elements like break up of joint families, presence or absence of alternate sources of income and fear of dependence on children in old age are playing important roles in people’s attitude to retirement

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Indians living in a joint family system feel more financially secure and this is still perceived as an important support-system in retirement

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Safety and security as an association to money is shifting to fulfilling dreams and having a better life

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Urban Indians are saving and investing less while allocating nearly 59% of their income to current expenses

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Only 46% of private-sector employees say their employers motivate them to plan for retirement

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One third of people have some form of alternate income

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51% of people who have planned their retirement also have some form of alternate income

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Priorities such as children and spousal security and even fitness and lifestyle ranked higher than retirement

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Most Indians do not have a ‘retirement fund’ – either because they haven’t begun retirement planning yet, or they just have all-purpose funds and investments that may later be used for retirement, in case any of the other worst-case scenarios do not materialise

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65% of Indians say retirement planning advice from the employer would increase their loyalty to the organization

To download the detailed ‘Retirement Readiness Report’Click HereClick img

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Key Findings

The survey focuses on some key questions including when do Indians plan their retirement and what are the possible reasons; what financial instruments are utilized; is lack of awareness undermining retirement planning; are Indians eager to learn more on retirement planning; and how employers play a vital role in raising awareness.

Some of the Key Findings are mentioned below:

Retirement Planning Triggers

In India, planning for retirement is the last priority, family's needs and financial security come first. On average, Indians start planning for retirement only in their early thirties because of various factors such as increasing financial responsibilities and observing people around them grapple with retirement. Let’s take a look at some of these factors.

Here’s how PGIM India Mutual Fund can help you achieve your Retirements Goals

Mutual fund is one financial instrument which is seen as a way to achieve retirement goals. According to the survey, among those who do have investment in mutual funds, 47% stated they had a retirement plan. These respondents had a greater awareness about unexpected and external events,inflation and rising prices that could impact their retirement plans.

Let's begin your journey towards financial freedom in retirement. First you need to calculate retirement corpus required to take care of all yours need.

Here’s a simple way to find out:

RETIREMENT READINESS CALCULATOR

The next step after calculating yours retirement corpus is to work towards achieving it. The ideal way to do this is with the Age -Linked Investment Asset Allocation Facility. The facility uses 'Rule of 100 minus age' as a simple yet powerful rule-of-thumb for asset allocation between equity and debt. The PGIM India Age-Linked Investment Asset Allocation Facility allows you to create customised path to retirement in such a way that the initial allocation favours equity and become increasingly conservative as you approach retirement. In this way, the initial years of your working life are focused more on accumulation whereas the later years are focused on conservation of capital while generating reasonable returns.

What is Financial Wellness and why is it important?

We believe financial wellness is when individuals adopt the behaviours that result in managing their day-to-day finances, achieving important financial goals, protecting themselves against key financial risks. It’s about being prepared to handle any unforeseen financial crisis while ensuring financial security in the future.

PGIM India is dedicated to helping Indians make themselves financially secure, through a range of financial planning awareness initiatives, and through innovative products and services customised to the needs of Indians. These initiatives draw on our deep understanding of the Indian financial landscape – and of the Indian consumer - as well as leveraging insights from years of PFI’s retirement research and education in the US and other global markets. Our overall aim is to improve the financial wellness of Indians, and remove financial stress from their lives, through education and promoting the benefits of prudent financial planning. PGIM India will continue to research, analyse and engage with the ecosystem to address and improve India’s financial wellness quotient.

Partner with us on your journey towards attaining financial freedom today!

Important Disclosures: PGIM India Mutual Fund appointed Nielsen India for conducting a survey among 3103 Indian adults aged between 26-60 years (26-30: 11%, 31-40:19%, 41-50: 39%, 51-60: 31%) inclusive of both Men (85%) and Women (15%) from private (85%) and government (15%) organizations belonging to NCCS A/B (74%:26%) covering Salaried (59%), Businessmen (31%) and Self-employed professionals (10%). The survey was conducted in 15 cities (Metros: 61%, Tier 1: 39%) across India. Data was collected using Face to Face interviews. The survey was fielded between December 2019 - January 2020. The margin of error for this study is +/- 3%. The report also holds few references from the Nielsen U&A syndicated study which was conducted among 8016 Indian adults aged 22-50 years (22-30: 31%, 31-40: 38%, 41-50: 31%) inclusive of both Men (76%) and Women (24%) belonging to SEC A/B/C (45%:37%:18%). The survey was conducted in 16 cities (Metros: 57%, Tier 1: 43%) across India. Data was collected using Face to Face interviews. The survey was fielded in FY 17-18 and FY 19-20. The margin of error for this study is +/- 3%.
© 2020 Prudential Financial, Inc. (PFI) and its related entities. PGIM, the PGIM logo, and the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.