The Indian life and health insurance markets are significantly underinsured compared to global standards, leaving a large portion of the population vulnerable to financial distress in the face of health crises or loss of life. The India Retirement Index Study (IRIS), an annual retirement study by Max Life Insurance and KANTAR, reported its findings recently.
The survey aims to understand the retirement readiness of urban India, with insights into awareness, aspirations and challenges of consumers during retirement and its planning. India retirement index is the degree to which Indians feel prepared for tomorrow’s retired life on a scale 0 to 100. It is based on how prepared India is for a healthy, peaceful and financially independent post-retirement life.
As per the survey’s fourth edition, southern India (48) stands behind eastern India (54) and western India (49), as well as the national average of 49. This score, however, places the region at par with northern India.
Rahul Talwar, EVP & Chief Marketing Officer, Max Life Insurance, commented: “As highlighted by IRIS 4.0, South India continues its journey towards building holistic retirement readiness with a steady index score of 48 points. While there is stability, there is also a need for greater financial planning and health focus as showcased in the slender financial and health index movements. At Max Life Insurance, we are dedicated to addressing these gaps by empowering individuals with tailored solutions and insights that drive proactive retirement planning. Together, we aim to create a secure future for all.”
Key findings from the survey
As per IRIS 4.0 — which surveyed 2077 people across 28 cities between June and July, 2024, through self-administered digital study — 57 percent of people living in urban India believe that their retirement savings will be exhausted in only 10 years into their retirement. Only 24 percent are confident that their retirement savings will last for more than 10 years into retirement.
It further found that 31 percent of people in India are still not sure of the corpus required to sustain their current lifestyle after retirement.
As per the survey, 44 percent of respondents believe that retirement planning should begin before 35 years of age.
Sixty-three percent of respondents living in urban India have already started planning for their golden chapter.
Lack of a trusted advisor — as stated by 31 percent of the respondents — acts as a barrier to retirement planning.
Eighty-two percent of respondents feel environmental change will affect their retirement life.
Forty-eight percent of women felt confident that they’ll stay fit in their golden years (after 65 years of age).
Three in 4 gig workers said they feel their retirement age would be lonely.
