MUMBAI: HSBC's latest edition of The Future of Retirement Healthy New Beginnings study found that 61 per cent of the working population in India aged 45+ want to retire in the next 5 years.
Around 14 per cent of them believe they will be unable to do so. Of those unable to retire, 71 per cent said that they cannot retire as they would struggle financially. The findings of this study bring out an urgent need for Indians to begin saving early and planning well for their retirement.
The study found that of the 45+ working population who would like to retire but are unable to due to financial constraints, 53 per cent say this is due to not having saved enough, 42 per cent say it is because they have dependants who rely on their income and 17 per cent cannot retire as they have a lot of debt.
HSBC's report also reveals that in India, 43 per cent would like to retire in the next five years to spend more time with their family. Others want to travel and pursue other interests (34 per cent) or pursue another career or voluntary work (20 per cent). However, 59 per cent cited work related pressures and issues as the reason for wanting to retire.
"People worldwide are recognising that retirement can be an opportunity for reinvention and new beginnings. Yet financial barriers are preventing many people from retiring when they would like to - or, in some cases, at all. Almost one in five people fear that they will never be able to retire fully, so the need for sound financial planning is stronger than ever," said S. Ramakrishnan, Head of Retail Banking and Wealth Management, HSBC India.
"People should consider these aspirations when planning for retirement and ensure they are making sufficient financial provisions for this new chapter in life. Even small amounts saved today can lay the groundwork for a comfortable retirement tomorrow, placing retirement dreams squarely within reach," he added in the statement.
The survey also stated that more than 18,000 people across 17 countries worldwide, HSBC found that the desire to retire among 45+ pre-retirees is strongest in Argentina (78 per cent), France (77 per cent), China (75 per cent) and the UK (75 per cent). Of those aged 45+ who would like to stop working and are unable to do so, 81 per cent say this is because they would struggle financially.
The study added that financial pressures are so great that 18 per cent of pre-retirees worldwide predict that they will never be able to retire fully. This is almost twice the proportion that said the same in 2015, when 10 per cent of pre-retirees expected never to be able to afford to fully retire.
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