Reliance Mutual fund recently did a survey about the Retirement habits of Indians….and here is what I read from that (this is based on a Morningstar summary, I have not read the original survey report).

People are worried about retirement and RETIREMENT PLANNING IS a top financial goal (46%). Nice, nice if you are a retirement planner this sounds good – so all those of you who are in this category rejoice (for now at least).

However being aware does not mean they are prepared. About 78% of the people know that they are not well prepared for retirement (rejoice so much business to do!!)

pathetic part of the population covered by pension plans (forget the %age it is at best a rounding off error).

the HUMOR PART IS the choice of products that they have made for retirement:

LiC policies, bank fixed deposits, gold, ppf – make up 91% of the assets.

9% of the people have said Mutual funds – ASSUMING THIS MEANS equity mutual funds..or let us say half is in mutual funds (equities)…

My reading is about 5% of India’s population (organised sector) is somewhat prepared for retirement.

Enjoy Madi.

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  1. Subra,
    Retirement is a plan. Within the limits of your resources you can invest, save, and get your money to work for you. The plan could never be watertight. As per Murphy’s Law you could have a lot going haywire——unless your finance corpus is large.
    Reminds me of a poster outside St. Michael Church Mahim,
    “And God looked at your plans —and laughed”

  2. Hi Subra
    The 5% number appears to be high. To bring perspective, less than 3% pay income tax [http://wealth18.com/number-of-income-tax-payers-in-india/]. So if this is a true figure then folks with “unaccounted for” wealth are also doing financial planning – and talking about it. Awesome!!.

    Oh and of course, reality is that more than 60% of people live on less than 120 rupees a day so ‘financial planning’ remains a cruel joke for them.

    Indra

  3. Half of total mutual fund investors are in equity. So the remaining half of MF investors are in debt. (I assume thats what you meant)

    — Really? Hardly any retail investor understands debt mutual funds. At best, it is a rounding error, like you said for some other thing.

  4. I cannot believe 46% people are worried about retirement. When I look around, I see none of my friends ever thought of retirement. They are expecting the jobs will last forever. or they will die before retirement. or their kids will take care of them during their old age.

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