India has topped 14 other countries in a survey that measures retirement readiness, by scoring more than 7.3 on the retirement index. The survey was conducted by Aegon Life Insurance.
According to the seventh annual Aegon Retirement Readiness Survey 2018-The New Social Contract, India is the only country that scored more than 7.3 on the Aegon Retirement Readiness Index (ARRI).
The survey is not indicative of the general population and is conducted among middle and high income-earning organised workers in the cities. The report evaluates the retirement readiness of workers. It explores the growing importance of health in financial planning and for the first time examines issues of financial literacy and aging with dignity.
Vineet Arora, MD and CEO, Aegon Life Insurance said, “Of all the countries included in this year’s survey, Indians are the most positive about their country’s economy over the next 12 months. The survey finds that people in India are self-funding their retirement more than all the other countries included.”
The objective was to gauge the participants’ sense of personal responsibility, level of awareness, financial understanding, retirement planning and income replacement.
This year, 40% of workers in India achieved a high score, down from 44% in 2017. Meanwhile, the proportion of workers with a low retirement readiness score (24%) has risen from last year (19%). It should also be noted that the role of the individual is far more substantial in India compared to that of the state as seen globally, and this onus is leading to ownership of responsibility.
India’s continued growing prosperity and establishment of pension systems is making the country’s future outlook brighter, the survey said. Almost half (46%) of Indians feel retirement income is expected to come from their own savings and investments (compared to 30% globally). People in India expect 30% to come from their employer (against 24% globally) and expect 24% to come from the government (against 46% globally).