78% Indians Don't Save Enough for Retirement

78% Indians Don't Save Enough for Comfortable Retirement: Towers Watson Report

 Notwithstanding a high savings rate of 16% per annum, second only to China, about 78% of Indian employees still believe they are not saving enough for a comfortable retirement, says a report by Towers Watson.

According to the global professional services firm Towers Watson, a large number of employees are not confident of affording a long spell of retirement amid high inflationary pressures.

Ms. Anuradha Sriram,
Director - Benefits,
Towers Watson India

Ms. Anuradha Sriram, Director - Benefits, Towers Watson India said. "In the face of a high inflationary environment & the advent of nuclear families, retirement adequacy is fast emerging as a national challenge with serious economic & social ramifications. While many remain unsettled about their post retirement financial prospects, India has a relatively young workforce, thus allowing them time to plan.That said, there is an evident need for the government and employers to take cognisance of the issue and incentivise or mandate such savings

"

To overcome a possible insufficiency of retirement income, it is interesting to note that across all age groups, Indian employees would rather save more than extend their retirement age.

The survey was conducted across 12 countries, covering about 22,350 employees working for large, non-government employers.

Highlights of Towers Watson Report

* * Indian employees have the second highest savings rate at 16%, second only to China, yet a large number are not confident of affording a long spell of retirement with an overwhelming 78% feeling the need to save more.

* * A majority 56% Indian employees would rather save more as compared to 29% who would prefer to work a few years longer..

** With most Indian employees expecting to retire about age of 60, saving for retirement has appeared as the top financial priority for those above 50 and amongst the top 3 across all age groups.

* *Amongst members of retirement plans, housing & saving for retirement are the top two priorities in the below 40 age group, while saving for retirement is the top priority for those above 40.

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