Given our propensity to save and invest, a surprising number of Indians aren't well prepared for retirement. As the recently concluded Max Life Insurance's India Retirement Index Study (IRIS) shows, half the respondents worry that they will run out of savings within just one decade of retirement. 31% of the respondents weren't even sure how to calculate the retirement corpus they'll need.
Paradoxically, however, 44% of Indians believe retirement planning should start before 35, and the IRIS index has moved from 44 points in 2021 to 49 points in 2024, indicating a move towards greater retirement readiness. To square these findings with one another, we spoke with Ranbheer Singh Dhariwal, CEO, Max Life Pension Fund Management. With a ringside seat to India's evolving retirement planning landscape and customer sentiment on retirement, Mr Dhariwal gave us the insider's perspective on how India plans for retirement today, where the gaps are, and the ways in which the National Pension Scheme (NPS) can help all of us plan for a happier, more secure retirement.
Q: How have you seen retirement planning evolve in India over the past few years, and how does NPS fit into this landscape? A: Before that, let me pinpoint the factors, or triggers, that are driving this evolution. India is heading into a time when the population over 50 is going to touch 35 crores by 2030 - our demographic is shifting. The average household size is now 4.
4 and it is declining at 0.9% every year. Most important.