Hyderabad, November 26, 2024: In collaboration with Kantar, the top marketing data and analytics firm in the world, Max Life Insurance Company Ltd. (hereinafter referred to as “Max Life” or the “Company”) has released the results of the fourth edition of its retirement survey, the India Retirement Index Study (IRIS).
According to the report, South India’s Retirement Index is currently at 48, which is a constant number when compared to the last edition. The region’s score puts it on par with North India, but somewhat below the national average of 49 and slightly behind East India (54) and West India (49). South India’s Financial Index, Health Index, and Emotional Index all remained at 49, 45, and 60, respectively, indicating that, despite stability, the country has particular opportunities and challenges in terms of retirement readiness.
Rahul Talwar, EVP & Chief Marketing Officer, Max Life Insurance, commented, with a consistent index score of 48 points, as indicated by IRIS 4.0, South India keeps moving forward in creating comprehensive retirement ready. The little shifts in the financial and health indexes demonstrate that, despite the stability, there is a need for increased attention to health and financial planning. Our goal at Max Life Insurance is to close these gaps by providing people with specialized products and information that encourage proactive retirement planning. We want to work together to build a safe future for everybody.
Growing Financial Challenges in the South India
The South India’s financial preparedness remains the lowest among all regions, pointing to significant financial insecurity. While ownership of most financial products remains stable, 42% of people in South India are yet to start investing towards retirement—marking the highest rate across all zones. Key retirement-related anxieties persist, with 81% worried about medical expenses depleting savings, and 80% being concerned about inflationary pressures. Despite these challenges, life insurance remains a favored choice for retirement investment, with 62% choosing it to secure their future.
Triggers for retirement investments include family/friends’ recommendations (43%), employer and financial advisors’ input (39%), health realization (45%), and uncertainties (35%). However, common barriers like reliance on family wealth and a perceived lack of trusted advisors hinder more proactive planning.
High Awareness but Low Ownership of NPS
In the South India, awareness of the National Pension System (NPS) is quite high, with more than 7 out of 10 South Indians (72%) being familiar with the product. This awareness is primarily driven by TV and print ads, news articles, social media ads, and word-of-mouth from office colleagues, friends, and family. However, only 14% of South Indians actually own an NPS, which is below the national average of 17% and significantly lower than the ownership rates in the East India (26%) and West India (22%).
Those who do invest in NPS are attracted by its better returns, low-cost long-term savings options, tax benefits, and the trustworthiness of the product. Despite these advantages, there are barriers to NPS adoption, with many potential investors feeling they need more guidance and lacking clarity on the benefits, which prevents them from purchasing NPS. Nevertheless, the South India perceives NPS as a trusted, safe, hassle-free, and worry-free product.
Health Awareness and Preparedness Varies
Health preparedness remains a mixed area, with only 32% of South Indians undergoing annual check-ups and 48% forgoing any health checks. While 45% own health insurance—lower than the national average of 50%—44% believe they will maintain good health during retirement, showing some optimism. Salaried individuals expressed higher health confidence (47%) than the self-employed (40%).
Emotional Resilience and Concerns
Emotional preparedness in the South India shows mixed results, with 52% feeling ‘Totally Secure’ about familial support—slightly below the national average of 55%. However, concerns over financial dependence (80%) and loneliness (72%) during retirement remain persistent challenges. Environmental and lifestyle changes are additional stressors, affecting 83% of respondents.
Barriers to Retirement Planning
Key barriers in the South India include reliance on family wealth, a belief that it is too early to plan for retirement (34%), and the highest reported need for trusted advisors (20%). Such challenges point to a greater need for awareness and strategic financial planning.
Retirement Sentiment and Future Outlook
Despite these challenges, many South Indians remain optimistic about retirement. The region continues to prioritize financial independence, family well-being, and health as key drivers of retirement savings.
In conclusion, the IRIS 4.0 findings for the South India reflect a steady but complex journey towards retirement readiness. Max Life remains dedicated to raising awareness and providing solutions to ensure a financially secure and fulfilling retirement.
