30, Jan 2024
Outlook Survey Reveals 36% or nearly 4 out of 10 of Individuals Above 40 Navigate Without Professional Financial Guidance
January 30, 2024: In a groundbreaking initiative to decode the financial intricacies of retirement planning in India, a recent survey has surfaced with exclusive insights that promise to reshape the way individuals approach their golden years.
With a meticulous execution that included 1,735 interviews spanning over 20 cities, encompassing both metros and non-metros, the survey has unveiled noteworthy trends in retirement planning. Survey findings on the retirement planning behaviours of individuals around the age of 35, reveals that an impressive 75% have already initiated retirement planning. The survey underscores that their priorities predominantly revolve around health expenses and children’s education, with approximately 70% emphasising these crucial areas.
A striking revelation from ‘The Outlook – Toluna Survey’ on Retirement indicates that 61% of respondents rely on family wealth, while 39% depend on their spouse or children for retirement financing, showcasing a significant reliance on familial support. Furthermore, the survey highlighted a disorganised approach, with 36% of individuals above 40 lacking a professional advisor for their retirement planning.
Nidhi Sinha, Editor, Outlook Money commented on the findings, saying, “The retirement survey by Outlook Money and Toluna aims to find out India’s preparedness for retirement. The insights into the data show that though people have started saving, retirement is not yet a focused goal for most. Indians still need to go a long way in becoming serious about their own well-being in old age.”
In terms of investment patterns, respondents said they allocate an average of 17% of their total income, dedicating 21% specifically to retirement. This allocation demonstrates a balanced split between growth and guaranteed instruments. Noteworthy is the preference for equity mutual funds, with 76% of respondents choosing this option. In contrast, 68% opt for low-growth-guaranteed-return instruments like life insurance, and 64% favour fixed deposits.
Surprisingly, government schemes such as small savings (13%) and the National Pension System (15%) attracted less interest among respondents above 40, according to the survey. A one-of-a-kind comprehensive survey, The Outlook Toluna Survey on Retirement is an essential resource for individuals, financial planners, and policymakers seeking a deeper understanding of retirement planning trends in India.
The ‘40After40’ expo by Outlook Money was held on January 23-24, 2024, at the prestigious Jio World Convention Centre in Mumbai, featured an impressive lineup of over 40 distinguished speakers, attracting over 4000 attendees and hosting 50+ exhibitors. The event provided a unique opportunity for participants to engage in insightful panel discussions, interactive chats, enlightening masterclasses, and connect with seasoned planners and industry experts.
Distinguished speakers at the “40After40” Retirement Planning Expo included influential figures from various domains, offering a rich tapestry of expertise and insights. Notable financial leaders gracing the event were Bharat Shah, Executive Director of ASK Group; Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA); and Madan Sabnavis, Chief Economist of Bank of Baroda. The lineup also featured
eminent public figures such as national award-winning actor Manoj Bajpayee, Former Captain of the Indian Women’s Cricket Team Mithali Raj, India’s leading storyteller Neelesh Misra, Columnist, Author, and Yoga Acharya Ira Trivedi, Indian Mythologist and Author Devdutt Pattanaik, and Senior Age Model and Actor Dinesh Mohan.
Over the course of two days, the expo boasted an impressive array of speakers, including M Jagannath, MD of LIC of India; Ananth Narayan Gopalkrishnan, Whole Time Member of SEBI; A Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC; Vishal Kapoor, CEO of Bandhan MF; Nilesh Shah, MD of Kotak Mahindra Asset Management; Prashant Tripathy, MD & CEO of Max Life Insurance; Swarup Mohanty, Vice Chairman & CEO of Mirae Asset Managers (India); Vibha Padalkar, MD & CEO of HDFC Life Insurance; Amit Jhingran, MD & CEO of SBI Life Insurance; Sashi Krishnan, CEO of National Pension System Trust; Vijay Chandok, MD & CEO of ICICI Securities; and Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance. These industry stalwarts collectively provided invaluable perspectives to guide attendees on their retirement planning journey.
Over two days of engaging sessions, the expo successfully delivered invaluable insights and expert guidance. Attendees were empowered with the knowledge needed to make informed decisions, steering them towards a secure and prosperous retirement journey. The event stands as a testament to the importance of proactive retirement planning, providing a roadmap for individuals to navigate this critical phase of life with confidence and foresight.
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- By Rabindra
29, Jan 2024
Outlook Retirement Planning Expo Sets New Benchmark
January 27, 2024: Pioneering a new era in post-retirement planning, a recent expo has set the stage for transformation for individuals and their families by addressing critical issues with a comprehensive and holistic approach. The two-day event featuring an impressive lineup of over 40 distinguished speakers, attracting more than 4000 attendees and hosting 50+ exhibitors offered insights and opportunities to help redefine how one can approach
financial considerations to make the right lifestyle choices in the context of retirement.
Outlook Money’s ‘40After40’ Premier Retirement Planning Expo emerged as a groundbreaking event, held recently at the esteemed Jio World Convention Centre in Mumbai, had participants engaging in insightful panel discussions, interactive chats, and enlightening masterclasses, connecting with seasoned planners and industry experts.
The event started with an impactful session by Bharat Shah, Executive Director of ASK Group, who emphasised the importance of early planning, addressed the lack of financial knowledge in academics, and highlighted growth opportunities in the finance and investment industry. Shah’s session underscored the sacred duty of building and nurturing money with care and dedication, touching on the holistic nature of wealth that includes intellectual ability, physical well-being, and the drive of the soul.
Speaking about securing the future, V. Vaidyanathan, MD & CEO, IDFC FIRST Bank said, “Embracing retirement planning is like stepping onto the cricket pitch. Start early, as delaying your financial innings can lead to unexpected challenges. Secure your future today, ensuring a stress-free retirement down the line.” As he delved into the gaps in the Indian pension landscape, Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), spoke of the risks of inflation, the power of compounding, and the need to expand literacy and awareness about the National Pension System (NPS). His session stressed the importance of pension planning as a necessity rather than a substitute.
Madan Sabnavis, Chief Economist at Bank of Baroda, provided valuable insights into India’s journey towards becoming a $5 trillion economy. He highlighted the contrast between the rich and the poor, emphasising the need for real GDP growth, lower inflation, and increased per capita income. Sabnavis discussed the challenges faced by the private sector, pointing tothe importance of creating more jobs and stimulating demand to achieve economic growth. “It’s clear that our pursuit of a $5 trillion economy requires a focus on the quality, not just speed, of our growth. With a per capita income of $2400, the key lies in fostering inclusivity and sustainability. A crucial aspect is the private sector’s role in generating more jobs, boosting consumption, and ensuring sustained income growth for all citizens,” Madan Sabnavis, Chief Economist, Bank of Baroda said.
To demystify the life insurance landscape, Anup Bagchi, MD & CEO of ICICI Prudential Life Insurance, outlined three critical variables for investment. These variables were – the amount of money, time, and return on investment. He stressed the tax efficiency and discipline offered by life insurance and recommended strategies such as Systematic Withdrawal Plans (SWP) and creating a corpus for medical expenses.
Ananth Narayan Gopalakrishnan, Whole Time Member of SEBI, shared insights on retirement planning and the role of proper advice. Gopalakrishnan urged attendees to view it as financial planning, emphasising that it occurs not at a later age but right now. He stressed the importance of understanding one’s risk appetite, diversifying investments, and seeking professional advice to avoid scams.
Vishal Kapoor, CEO, of Bandhan MF in his comments said Investing for retirement is about more than just chasing returns. “Future expenses, particularly medical costs, are often underestimated. Aligning investments with specific lifestyle goals and anticipating evolving expenses is crucial. Strategic planning ensures that investments not only beat inflation but also sustain the desired standard of living in retirement,” he said.
The panel discussion on wealth creation featured Sushant Bhansali, CEO of Ambit Asset Management, Deepak Shenoy, Founder and CEO of Capitalmind Financial Services, Anshul Arzare, MD & CEO of YES Securities (India) Limited, and Vasanth Kamath, Founder & CEO of Smallcase Technologies. The panel emphasised the importance of investing in India, choosing good companies, and diversifying portfolios across different industries.
In the session on post-retirement money, a panel consisting of Swarup Mohanty, Vice Chairman & CEO of Mirae Asset Managers (India), Vibha Padalkar, MD & CEO of HDFC Life Insurance, and Kamlesh Rao, MD & CEO of Aditya Birla Sun Life Insurance, discussed the necessity of creating wealth post-retirement. They highlighted the increase in expenditure with age, not only for health but also due to inflation. Vibha Padalkar promoted living retirement with dignity, emphasising the cost associated with guarantees in financial products.
Sashi Krishnan, CEO of National Pension System Trust, addressed reforms in the National Pension System, emphasising the need for investing now. Krishnan outlined why people invest in NPS, including tax exemptions, tax reductions, and the product’s cost efficiency. He highlighted changes in the accumulation and post-retirement phases to enhance the investment experience for participants.
In a special address on investing in a bull market, Sankaran Naren, Executive Director & CIO of ICICI Prudential Asset Management, discussed the importance of asset allocation and hybrid products for a pleasant retirement. He emphasised the need to avoid extremes and adopt a diversified approach for a happy retirement.
Vijay Chandok, MD & CEO of ICICI Securities, explored the role of equity in retirement planning, acknowledging its complexity and risk. Chandok highlighted the dynamic nature of equities, the magic of compounding over the long term, and the importance of staying updated and seeking expert advice. The Financial Planners Panel, featuring Dhruv Mehta, Lovaii Navlakhi, Sadique Neelgund, and Sandeep Jethwani, moderated by Amit Trivedi, discussed the challenges and solutions in financial planning, providing valuable insights for attendees.
Rajit Mehta, MD of Max India & Antara Senior Care, delivered a special address on the next step in healthcare. He discussed the impact of ageing on physical, emotional, and mental well-being and emphasised the transformation of the healthcare system to promote holistic wellness. Mehta introduced Antara’s AGEasy initiative, empowering seniors to age easily and joyfully through health and wellness solutions.
Ira Trivedi, Author, Columnist, and yoga Acharya, conducted a spotlight session on the recipe for wellness. Trivedi emphasised the importance of proper exercise, diet, breath, relaxation, and positive thinking for overall wellness. In another special address, Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, addressed the long-term roadmap for a healthier nation. Singhel discussed the need for mindfulness, meditation, yoga, exercise, a group of friends, annual checkups, and moderate income for a healthier life. He highlighted the role of wellness ingrained in Indian culture and advocated embedding health awareness in academic curriculums.
In a spotlight session, National Award Winner Actor Manoj Bajpayee shared insights into his acting career, emphasising the challenges and dedication required for role preparation. He highlighted the importance of simple living and the refugee state of mind that comes with leaving one’s place. The event also featured a spotlight session with Mithali Dorai Raj, former captain of the Indian Women’s Cricket Team, discussing her life story, challenges, and retirement plans. Devdutt Pattanaik, Indian Mythologist, Speaker, Illustrator, and author, delivered a special address relating the Ramayana and Mahabharata to current life situations. He drew inspiration and solutions from mythological scriptures, emphasising the need to accept life for what it is.
Outlook Money’s ‘40After40’ succeeded in creating a unique platform for individuals to gain valuable insights into retirement planning, ensuring a brighter financial future. The event’s success is a testament to the importance of informed decision-making in securing one’s retirement.
