As per India Insurance Research- Only 11% of the working population in India has any form of social security for old age. Although India's population is young, in the last three decades life expectancy upon reaching age 60 has risen by 15% and fertility rates have halved. The ratio of elderly to working-age people is expected to double in the next 30 years.
This is an interesting piece of statistics which has huge implications for the Insurance industry - with special relevance to Retirement plans.
In a country like India, where there is no social-security, the individuals have to plan their retirement sensibly.
This means:- That people who do not have sufficient retirement funds arranged by their employer's pension plans, need to actively invest in some kind of a retirement fund. Which in turn means that all Professionals, self-employed people, and those in the unorganised sector should look at retirement plans as the viable source of managing expenses beyond their working years.
- Also people in the organised sector need to be sure that they are adequately covered with the existing plans- which should take into account the inflation rates & other sources of expenses being added in future.
What products to choose:
Retirement plans should typically be a systematic investment of current savings which should build a significant corpus to sustain the desired lifestyle post-retirement.
Most of the leading Insurers provide Retirement plans and we sincerely advice you to compare them in detail and choose a plan wisely.
