Mumbai - Only a third in India are regularly saving for their retirement, while a similar 33 per cent of working-age respondents globally are putting anything aside for their later life, according to a report.
The lack of saving is likely to be linked to low knowledge of how much money is needed in retirement, as well as many prioritising their immediate financial situation over planning for their older years, according to HSBC’s the ‘Future of Retirement: Bridging the Gap’ report.
“For many, retirement is thankfully no longer a short period tacked on to the end of our life. It can be a long and very fulfilling part of a person’s life.
“But with that, our needs at 65 can be very different from our needs at 75 or 85, with very different financial implications,” HSBC India head of retail banking and wealth management Ramakrishnan S said.
The research for this report was carried out online by Ipsos on behalf of HSBC among 16,000 adults in 16 markets, including Australia, Argentina, Canada, China, Malaysia, Mexico, Singapore, Taiwan, France, Hong Kong, India, Indonesia, Turkey, UAE, UK and USA.
It revealed that only 19 per cent of working age people are saving for future nursing or care home fees. This is despite half (51 per cent) respondents claiming to be concerned about affording residential care when in retirement, it added.
Meanwhile, the report found that over half of working-age people (56 per cent) are living on a day-to-day basis financially, while a further 53 per cent only save for short-term goals.
Almost half (45 per cent) also admit they prefer spending on enjoying today rather than saving for tomorrow, it added.
The lack of saving may also be linked to many people not considering their older years as ‘retirement’ at all, with over two-thirds of working-age people (69 per cent) expecting to continue working to some extent and more than half (54 per cent) hoping to start a business or new venture, it said.