The latest version of Iris has added two new segments in the form of Double Income No Kids (Dinks) and Gig Workers+. With an index score of 49 points, DINKs rank in line with the national average on the Retirement Index, demonstrating strong preparedness for the health and financial needs of this group. Apart from this, the score of gig workers was only 46 points, which is an indication of weak preparation for retirement in this category.
Planning for retirement should start early
The findings from Iris 4.0 revealed that a large majority of urban Indians now believe that planning for retirement should start early. 44 percent of Indians considered younger than 35 to be the right age to start retirement planning. In Iris 3.0 the number of people believing this was 38 percent. During the study, 93 percent of people above 50 years of age expressed regret that they delayed retirement planning. Encouragingly, 63 percent of participants have started investing for retirement. This will ensure a secure future for the children as well as reduce their worries about meeting their basic and luxury needs after retirement. A remarkable 68 percent of urban Indian working women have started investing for retirement. There has been an increase of 7 percent compared to last year. The study also revealed potential opportunities at the regional level for retirement planning in India. Eastern Zone is at the forefront in terms of complete planning after retirement. The western region has seen progress in terms of financial preparedness and health, but there is a need to focus on the emotional aspect of retirement. The index regarding health preparedness has improved in North and South.
As per Iris 4.0,
According to Iris 4.0, 97 percent of urban Indians are aware of life insurance as a suitable financial option. 67 percent have invested in life insurance as an ideal financial option after retirement. 37 percent have invested in health insurance. However, 31 percent of urban Indians do not know how much money they will need to maintain their current lifestyle after retirement. Only 27 percent of urban Indians estimate that their savings will last for 5 to 10 years after retirement. 30 percent are worried that their funds will be exhausted in just 5 years after retirement.
Prashant Tripathi, CEO and Managing Director of Max Life
Prashant Tripathi, CEO and Managing Director, Max Life, said, ‘Retirement preparation is very important for the future of Indians. This is also important because the life expectancy of people has now increased due to advancements in the field of healthcare. Therefore, now it has become necessary for people to do financial planning for more years after retirement. The Iris 4.0 study has revealed that although the retirement index of urban Indians has increased, still 1 in 3 Indians is not prepared for the post-retirement years. Keeping in mind the rapidly growing gig economy in India, this time we also included gig workers in the study. We found that our gig workers are lagging behind in the index with poor retirement preparation. This shows that if initiatives are taken with focus, there is enough potential to bring this category at par with the national average.