Planning for retirement is a critical aspect of one’s financial journey, and it can be initiated at any age, offering a wider range of choices and a better chance to achieve retirement goals. The financial requirements for retirement depend on factors like lifestyle, anticipated lifespan, and local cost of living.
While a general guideline suggests saving around 10-15% of annual income, a recent BankBazaar survey indicates a decline in retirement planning, with the percentage of savings allocated to retirement decreasing from 45% in 2022 to 38% in 2023.
Women, in particular, face challenges in saving for retirement, redirecting funds towards other financial goals. The survey reveals a changing pattern in women’s engagement with retirement planning, with only 57% actively building a retirement fund in 2023, an 11% decrease from 2022. In contrast, men show a slight increase from 54% to 55%.
Notably, there’s a concerning rise in the proportion of women lacking a retirement fund, climbing from 32% in 2022 to 43% in 2023. On the other hand, men show a slight decrease in this statistic, dropping from 46% in 2022 to 45% in 2023.
The data indicates that individuals typically start significant retirement savings in their late 20s to early 30s. In 2023, nearly 9% of respondents reported actively building a corpus in the range of ₹50-₹75 lakhs, with a notable decrease compared to the previous year.
The survey introduces a classification of women into groups like “MoneyMooners,” where 22% actively build a retirement fund in the ₹50–75 lakhs range, showing that women are taking charge of retirement savings.
Discussing investment options for retirement planning, the survey finds consistent preferences across age groups. Savings bank accounts, fixed deposits, and mutual funds are among the top choices, with 67%, 57%, and 57% of individuals selecting them, respectively. The reliance on savings bank accounts for retirement savings remains consistent across age groups and regions.
In summary, the survey underscores the importance of early retirement planning, the challenges women face in this regard, and the need for diversified investment strategies beyond traditional options.
