More than half of working Indians in the age bracket of 55-64 years prefer to put their retirement savings into cash deposits, says an HSBC survey.
New Delhi: More than half of working Indians in the age bracket of 55-64 years prefer to put their retirement savings into cash deposits, says an HSBC survey.
Globally, only 21 percent of respondents prefer the same, the survey said.
According to the survey, people approaching retirement age in India are heavily reliant on cash savings: 55-64 year olds expect 30 percent of their retirement income to come from this source, compared to an overall average of 21 percent.
About 67 percent of Indians are confident about their financial preparedness for a comfortable retirement and believe their financial preparations are adequate. 27 percent feel they are more than adequate.
The survey said that Indians on average see the age of 34 as the latest by which people can start planning financially and still expect to maintain their standard of living in retirement.
"When the economic downturn first hit and many people reduced or stopped saving, everyone expected the storm would eventually pass; but today’s shifting economic and social trends require people to think differently about their planning and prepare for the unexpected," HSBC India Head Retail Banking & Wealth Management Gannesh Bharadhwaj said.
Some of the key life events that affect people's ability to save for retirement include the cost of buying a home and paying a mortgage and the cost of children's education and the economic downturn, the report said.
When asked to choose between saving for the short-term goal of a holiday and the longer term goal of retirement, Indian respondents were least likely to choose a holiday, with only 35 percent doing so. Over three fifths (61 percent) said they would rather save for retirement.
Fear of financial hardship is an important incentive to saving in India as 49 percent are motivated to save towards retirement due to fear of not having enough money to live on in later life.