7 out of 10 Indians expect their children to support them in their retirement - FinVise India

7 out of 10 Indians expect their children to support them in their retirement: Survey

Not many of us are financially prepared for our life after retirement. This is something that a recent HSBC survey found. The HSBC Future of Retirement Study found that while 76 percent of working age people in India expect a comfortable retired life, only 33 percent are actually putting aside money to fund that phase of life. The retirement study covered 1,045 respondents in India. Here are more findings from the survey.

Inability to anticipate future financial needs is the main roadblock to planning

45% feel it’s better to spend money on enjoying life now than saving for retirement

53% save for short-term goals rather than longer term plans

56% live on a day-to-day basis financially, setting the stage for problems later

While almost two thirds of working people have a financial plan in mind, just under three fifths have sought financial advice to help them plan for retirement.

However, concerns about affording care in retirement are common

64% are worried about the rising cost of healthcare

51% worry about not being able to afford home care

49% feel they have to rely on others for support

51% feel they could run out of money in retirement

58% think they will not be able to live comfortably

Though almost two thirds of working people are aware of the cost of living in an elderly care home, only 19% are saving for future nursing or care home fees.

Many expect help from family network in old age

68% of working age people expect their children to support them at some point in their retirement

30% of current retirees receive financial support from children

Receiving financial support from children may be an unrealistic expectation on the part of many.

Eight out of 10 people have a plan in mind to augment income if needed in the later years of retirement

25% say they will go back to work

25% would start a business

21% would rent out a spare room

19% would dip into savings

19% would diversify investments

15% would sell possessions

13% would sell or release equity from home

10% would seek government aid

Over two thirds of working age people expect to keep working in some form in the early and active years of retirement.

Most working age people feel hopeful about retirement

54% associate it with relaxation

44% with satisfaction

41% with happiness

23% with loneliness

19% with boredom

Despite the lack of certainty and niggling worries, retirement is far from doom and gloom.

The steps to consider while planning for retirement

Moves to make to ensure a comfortable retired life:

1. Think differently

Think of retirement as a chance to pursue your passions and have new adventures. Make the most of it by planning ahead.

2. Visualise

Think about the kind of retirement you want. Having a broad idea about how you would like your retired life to be will allow you to plan effectively.

3. Ask the experts

Use free online advice or seek out professional help to plan your finances in retirement. Don’t be afraid to ask questions.

4. Be meticulous

You need to know where you can save money and how much. Use online tools like calculators and budgeting apps to help identify changes you can make to cut costs.

5. Start a conversation

If you want help from your children, talk to them beforehand. This can help manage expectations.

Source: HSBC Future of Retirement Study

(The figures do not add up to 100 due to multiple answer choices).

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