The idea of not working is appealing to many people; however, while most people want to retire and enjoy life, they may not be prepared for it. The infamous retirement has grown in popularity over time. What was once thought to be an indirect way of being told, “You are old!” is now a way of enjoying life before death pays you a visit.
A recent survey, conducted by Max Life Insurance, resulted in the development of the Indian Insurance Retirement Index Study. According to this study, most Indians do not obsessively consider retirement; it is frequently swept under the rug and pushed to the back burner. It is not given the importance it deserves; while some rely on their healthy family wealth, a large number believe they will remain young forever. Surprisingly, only 49% of the public in this study felt financially prepared. According to the World Economic Forum, India has a large retirement-to-savings gap that will only grow in the coming years.
Retirement goals in India have undergone significant changes due to technological advancements, changes in consumption patterns, the power of education, and the Internet. Let us delve into this to see how retirement is no longer treated as a stepchild but as it truly deserves to be.
- Change in the way people think-
For decades, parents in India had only two major goals: get their children married and ensure that they receive a better and higher education than they did. Retirement was never approached strategically. It was only thought of as a rainy-day fund. Those days, however, are long gone. Individuals want to travel and explore the world, as well as start their own small businesses or find ways to give back to their communities. They want to spend time doing something they are passionate about, but they were not brave enough in their twenties to pursue their passion as a career. The Self-Care movement has inspired people to get back on track with their health and take various steps to feel more youthful. Some people join yoga clubs, go dancing, go trekking, or join the gym. Their ultimate goal is to look fit and not feel their age, which requires both time and money. As a result, retirement appears to be the ideal time to find like-minded people through such clubs to eat healthy, think healthy, and be healthy.
- Advancement in methods of saving due to education-
For the longest time, you must have noticed the adults around you saving money in the form of FDs, life insurance, PPF, jewellery, asset purchases, or post office schemes as you grew up. However, while these are excellent ways to save, they do not provide the returns that stock markets do. As a result of globalisation, the world economy grew tenfold, allowing people unprecedented access to money. Individuals learned the art of compounding and earning dividends from some of the world’s largest corporations with the help of the internet, which is available at the tip of their fingers. Knowledge has become widespread and easy to access. Individuals can sit in the comfort of their homes and learn how to deal with stocks. This is especially beneficial for the Indian housewife, who is frequently occupied at home with household duties and cannot pursue her ambitious dreams. Life as you knew it changed forever when you began diversifying and not putting your eggs in a basket that only keeps them warm, but rather putting them somewhere where they would be challenged to grow. With the help of financial planners and wealth managers, people have not only saved but also earned from their savings like never before.
Retirement is being taken more seriously than a decade ago. Not everyone in India has or will achieve the ideal retirement fund, but a significant number of the population will be educated and understand the value and necessity of saving not only for their children but also for themselves in the coming years. Knowledge is power, truly.
