Winning Bizness Sports Desk

Mumbai. According to a survey conducted by HDFC Pension, India's first population between the ages of 30-55 believes that the retirement age should be 59 years and 32 years is the age when one should start their retirement planning. Only 20 percent think serious retirement planning should begin before age 30. This ratio is higher among men, salaried and high income groups (household income above Rs 20 lakh per annum). The survey was conducted among 1801 citizens in Tier I, II and III cities, of whom 70 percent were salaried and 30 percent were business owners. Most of the people prefer to keep the savings for future medical expenses that they usually spend on their child's education. People in small towns prioritize their children's education and marriage, while retirement planning is not as important as in big cities.

People are concerned about retirement fund

The survey wanted to find out what people think about retirement and how much they know about it and care about it. This helps in creating a score called 'NPS Ranking Index' which we can track over time. People generally need about 30 times their current annual expenses to live comfortably after retirement. For example, if you spend Rs 9 lakh a year and your age is 50 years, you would aim for a retirement fund of Rs 2.70 crore. However, one study found that many people have capital savings of an average of Rs 1.3 crore, which is less than 10 times their current annual income. According to the study, in such a case you should increase your retirement fund so that you can reach that goal before time.

Start investing early

If you start investing early, you won't need to invest as much to build a good retirement fund. For example, if a 25 year old person invests Rs 5 thousand every month. Suppose he retires at the age of 60, then he would have invested Rs 21 lakh by then. With an average return of 10%, his retirement savings could be around Rs 1.9 crore.