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Life Insurance - Are you ready to retire?

21 Oct 2013

Nearly 78% of the Indian retirees say they prepared adequately for their sunset years, according to a worldwide survey, Life after Work?, conducted by HSBC.

Here are some other revealing insights.

Transition to retirement

Do you expect to move into semiretirement before you retire fully?

Over half of the younger workers (25-34 years old) expect to reduce their working hours, but continue with some form of paid employment as they approach retirement.

Why do you expect to move into semiretirement?

While 44% of the respondents want to keep active, 43% like working and want to continue, and 39% feel it will ease the transition into retirement. However, financial worries are also a motivator.

Aspirations vs reality

Did you prepare adequately for a comfortable retirement?

Two out of 10 retirees didn’t prepare well enough or at all. Of these, less than 24% realised their efforts were insufficient before retiring, and 18% don’t think they will bridge the shortfall.

Which of these aspirations have you been unable to realise since retiring?

While key aspirations, like starting a business, remain unfulfilled for 25% of respondents, more modest ones like spending time with friends/family have been achieved by 41%.

Leaving a legacy

Have your parents/relatives given you a significant financial gift or loan?

Today’s retirees are more likely to have received a financial legacy than the younger generations.

Will you leave an inheritance for your children?

86% of fully retired people expect to leave an inheritance. Rs 27 lakh is the median value of inheritance the fully retired expect to leave.

Do you expect to 7% receive an inheritance?

59% of the working age people expect to receive an inheritance. Rs 12 lakh is the median value of the inheritance the working age people expect to get.

The survey includes more than 1,000 respondents in India and was conducted between July 2012 and April 2013. All figures don’t add up to 100 due to multiple responses.

Source: ET BACK