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Indian Report: Mutual Funds Are The Most Preferred Choice For Retirement Planning

<p>According to a recent poll, young individuals in India’s tier-1 and tier-2 cities are realizing the value of retirement planning more and more. The findings showed that young people’ perspectives had significantly changed, with a strong emphasis on safeguarding their financial future.</p>
<p>BajajCapital reached out to 5500 persons in India who were all between the ages of 35 and 60 for the October study.<img decoding=”async” class=”alignnone wp-image-260292″ src=”” alt=” mamaearth ipo day 1 research prices gmp reviews and additional information before” width=”1372″ height=”1028″ srcset=” 259w,–150×112.jpg 150w” sizes=”(max-width: 1372px) 100vw, 1372px” title=”Indian Report: Mutual Funds Are The Most Preferred Choice For Retirement Planning 9″></p>
<p>Key Results:</p>
<p>Millennials in Charge: Of the 5,500 respondents aged 35 to 60, the study found that an astounding 32% had already started the process of preparing for retirement. This research suggests that the younger generation is starting to prepare ahead financially for retirement.</p>
<p>Pandemic-Induced Awareness: Retirement planning has become more widely known as a result of the COVID-19 pandemic. 38% of responders had begun retirement planning as of 2022, the year after the epidemic.</p>
<p>Preferred Financial Instruments: Of the respondents, 75% selected mutual funds as their preferred financial product, with term and health insurance coming in second at 44% and fixed deposits at 43%.</p>
<p>Sense of Urgency: Given the rising rates of inflation and longer life expectancies, young individuals are becoming more aware of the need to become financially independent by the time they retire. This is highlighted by the poll results.</p>
<p>Optimism in Tier-2 Cities: It’s interesting to note that tier-2 cities are seeing a slow but steady rise in the recognition of the significance of retirement preparation. Twenty percent of respondents—sixteen percent of men and four percent of women—from tier-2 cities began saving for retirement in their late 40s.</p>
<p>But eighty percent of those from these cities who responded had not even begun to prepare for retirement, depending only on their children and savings.</p>
<p>“The pandemic outbreak has been a wake-up call for all of us in numerous ways, and this includes retirement planning too,” said Rajiv Bajaj, chairman and MD of BajajCapital. Events beyond our control may occur at any moment. As a result, we must prepare ahead of time for a quiet retirement. I’m happy that our study has helped to highlight how young people’s perceptions of tier-1 and tier-2 cities are evolving. People are starting to realize that they should invest to increase their retirement corpus.</p>
<p>The CEO of retirement company BajajCapita, Jai Bajaj, said, “Planning ahead is essential for retirement as it is a life goal.” We are always dedicated to helping those who are unable to prepare well by providing the finest retirement plans possible. This poll serves as evidence of the success of our work in this field. Given that the average lifespan is now 100 years, retirees need to make sure their savings outlive them.</p>
<p>The Importance of Retirement Planning Is Growing</p>
<p>According to the poll, 25% of participants think that starting early in retirement planning increases the likelihood of accumulating a sizable and risk-free corpus.</p>
<p>But 75% of those surveyed are still hesitant to start saving for retirement. Notably, tier-1 cities accounted for 70% of survey respondents, while tier-2 cities accounted for 30%.</p>
<p>Growth of the Indian Retirement Planning Market:</p>
<p>Over the next five years, the Indian retirement planning industry is predicted to develop at a Compound Annual Growth Rate (CAGR) of 20%, indicating significant growth ahead.</p>
<p>This rise may be attributed to a number of factors:</p>
<p>Raising Awareness: The significance of retirement planning is becoming more widely recognized.<br />
Growing Incomes: The Indian populace now has more discretionary money.<br />
Young Workforce: An increasing number of millennials and Gen Z employees.<br />
Government Initiatives: Measures implemented by the Indian government, include the introduction of the Atal Pension Yojana (APY) and the National Pension System (NPS).</p>
<p>Favorite Financial Products:</p>
<p>According to the poll, fixed deposits and insurance are the next most popular financial instruments in India for retirement planning, behind mutual funds. A growing number of young folks are using mutual funds to finance their retirement.</p>
<p>Geographical Inequalities</p>
<p>Regional differences were also brought to light by the survey findings. Tier-1 city residents are more likely than tier-2 city residents to start saving for retirement at an early age and to invest in a larger variety of financial products.</p>
<p>Notwithstanding the encouraging developments, a sizeable segment of the Indian populace still lacks a retirement strategy.</p>
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