Most Indians Woefully Underprepared When It Comes To Future Goals Like Retirement And Child’s Education

How do Indian families plan for the future? How do they prioritise their financial goals? How prepared are they when it comes to their financial goals? The Canara HSBC Life Insurance’s “Perfect Plan Ka Partner” survey throws some interesting insights on the same.  

When it comes to life insurance, the focus is on savings (57 per cent), while the financial security of the family comes next (44 per cent). Life insurance is also used for retirement (26 per cent) and planning for their child’s future ( 26 per cent). 

When it comes to term insurance, 64 per cent wish that they had taken the policy earlier, while 75 per cent feel that their policy cover may be insufficient in times of an emergency. Also, only 11 per cent of Indians review their insurance every year. 

A lot many Indians are unprepared when it comes to major financial goals. When it comes to retirement, 66 per cent of Indians feel that they are not adequately prepared for retirement. Only 24 per cent say that they are very well prepared. When it comes to their child’s future a whopping 82 per cent feel that they are not prepared. In fact, 25 per cent say that they are not at all prepared. 

What’s more, 70 per cent of Indians feel that they cannot achieve financial stability through planned savings. What is more, since future savings are not in place, 70 per cent of those surveyed feel that they are sacrificing current needs like buying a house (43 per cent), going on a vacation (42 per cent), getting a car (24 per cent), health care needs ( 20 per cent) and so on for future savings. 

Says Rishi Mathur, Chief Distribution Officer - alternate channels and Chief Marketing Officer, Canara HSBC Life Insurance, “These findings emphasise the need for early and regular financial planning. With the right guidance and timely decisions, every individual can achieve their financial aspirations and secure a better future for themselves and their loved ones.”

Canara HSBC Life Insurance survey included 800 participants aged 20 to 50 from eight Tier 1 and Tier 2 cities.