Kolkata, (UNI) A survey revealed deep insights into the preparedness to live a healthy, peaceful, and financially secure life of urban Indians living in the country’s eastern region, considered to be one of the economically weaker regions compared to other in India.
Max Life Insurance has unveiled the findings of the third edition of its retirement survey, the India Retirement Index Study (IRIS), conducted in partnership with Kantar, the world’s leading marketing data and analytics company.
” The survey revealed deep insights into the preparedness to live a healthy, peaceful, and financially secure retired life of urban Indians living in the country’s east region “.
At 52, Eastern India’s Retirement Index (on a scale of 0 to 100) top retirement planning across zones, followed by West and South at 46 and North at 44.Post-pandemic, Eastern India’s urban population has demonstrated the highest commitment to health and fitness, with the Health Index rising from 46 to 50 in the region. Emotional preparedness in the region stood at 60, which indicates an increasing dependence on family and social circles during retirement.
With a Financial Index of 53, Eastern India’s urban population reflects stronger financial security for their retirement years.
” For two years in a row, the East zone has topped the charts in retirement planning. It is heartening to see greater awareness around health, with more preventive measures taken by the people of the zone. Eastern India’s findings reaffirm that effective retirement planning must also encompass vital dimensions such as emotional well-being and financial security, underlining its criticality for safeguarding one’s financial future.” Max Life deputy managing director V Viswanand said.
Overall, the East Zone demonstrated lower levels of retirement-related concerns. A smaller percentage of individuals worry about never being able to retire (71 percent) in East vs. India average of (76 pc) and not having enough money for basic requirements (67 pc) in East vs. India average of (73pc) . These findings underscored the region’s growing retirement preparedness and confidence, the survey claimed.
Health remains a cornerstone of retirement readiness in the East region, gaining even more importance, with 1 in 2 respondents saying they will be fit & healthy, which is best-in-class among zones. IRIS 3.0 also revealed a growing trend in the East Zone’s urban population engaging in daily physical activities (from 38 pc in IRIS 2.0 to 42 pc in IRIS 3.0). Notably, 44 pc of individuals in the East Zone prioritize their health through doctor consultations and medication to maintain their well-being.
Despite a 3-point dip in the Financial Index from last year’s edition, East India maintains a strong lead in financial readiness compared to other regions. The zone boasts the highest percentage of insurance ownership, with 86 pc holding life insurance (India average at 75 pc) and 47 pc having health insurance (India average at 44 pc). Term Life Insurance ownership stands out in the zone, with more than half using the instrument to safeguard their financial protection.
In the retirement segment, East India’s urban population leads in ownership, with nearly 1 in 4 contributing to the National Pension Scheme. Moreover, the uptake of Pradhan Mantri Vaya Vandana Yojana (PMVVY) is most significant in the East at 11 pc, almost double the India average of 6 pc.
A significant shift is observed in the East zone’s awareness levels and perception about retirement savings, with 51 pc (up from 37 pc in IRIS 2.0) believing that retirement planning should commence before the age of 35 and 54 pc asserting that financial planning for retirement should be a top priority when one starts earning – a notable contrast to 45 pc in the North Zone. Additionally, the East
Zone records the lowest percentage of people who have not yet initiated retirement planning, at 33 pc, in contrast to the South Zone at 44 pc.
The East zone accords the highest importance to retirement as an objective to save for at 16 pc against the overall national average of12 pc and has the maximum share of people (31 pc) believing that the retirement corpus will last through retirement life.
In East India, reliance on children for their retirement corpus is relatively lesser (18 pc), in contrast to the North Zone (29 pc), where over-dependence on children is a potential impediment to retirement savings, the survey said.
