Retirement Falls Last on Financial Priorities of Indians: Survey As much as 51 per cent respondents in the Retirement Survey released by PGIM India MF reported that they have absolutely no financial plan for their retirement

By Shipra Singh

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


As consumption takes precedence over saving and investing among Indians, the notion of India as a country of savers may be fast getting outdated, shows a recent survey.

As much as 51 per cent of the 3103 respondents of the Retirement Survey released by PGIM India MF reported that they have absolutely no financial plan for their retirement. Of this, a whopping 89 per cent said they do not have any alternative income.

A shift in attitude towards money being increasingly seen as a medium to fulfill dreams and lead a better life from the earlier association of it as something that helps secure the future has pushed retirement to the backseat for most, the report suggested.

"With the rise of home loans, unsecured loans and credit cards, Indians are saving and investing less, and focusing more on current expenses rather than saving and planning for the future," the survey stated.

When asked to rate several financial goals on the basis of priority, retirement fell at the bottom of the list. Children and spousal security and even fitness and lifestyle ranked higher.

Even among those planning for their retirement, there seems to be a lack of awareness of the right kind of financial planning, the report shows.

Only 1 in every 5 respondents reported to consider inflation while planning for retirement, whereas 48 per cent respondents said they are not even aware of the amount required for life after retirement. Such people usually do not dedicate a separate corpus to retirement, and instead rely on their all-purpose funds and investments. This approach can prove costly if an unexpected emergency eats away into the corpus, putting you at risk of running out of funds in your golden years.

Moreover, people are still relying on low-return financial products for building their corpus, which may not be able to beat inflation and leave them with inadequate funds. 41 per cent respondents said they have focused their retirement investments on life insurance, while 37 per cent said they prefer fixed deposits

"The only financial goal for which you do not get a loan for in today's world is retirement," said Ajit Menon, CEO, PGIM India Mutual Fund. "This puts the onus for being prepared squarely on each of us."

Shipra Singh

Entrepreneur Staff

Freelance Journalist

Now a freelance journalist, ealier steered the Wealth section on the Entrepreneur website, covering everything finance. Previously a personal finance reporter at The Economic Times and Outlook Money.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics


International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

Business News

Lululemon Founder Bashes Company's 'Diversity and Inclusion', Calls Models 'Not Inspirational': 'You're Not Everything to Everybody'

Chip Wilson left the company in 2015 after controversial comments forced him to step down as CEO in 2013.

Business Ideas

55 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Here Are 3 Strategies Startup Founders Can Use to Approach High-Impact Disputes

The $7 billion "buy now, pay later" startup Klarna recently faced a public board spat. Here are three strategies to approach conflict within a business.