New Delhi: According to a MetLife India Insurance survey, over 80% Indian employees have done no retirement planning independent of any mandatory government plans. Giving details of the other countries, the survey further added that over 81% Mexican employees, 58% Australian employees, 46% employees based in the US and over 31% of the UK employees, have not taken any steps to determine income need or any sort of retirement planning.
These are the findings of the two MetLife surveys – the inaugural Study of International Employee Benefits Trends (iEBTS), and the sixth annual U.S. Study of Employee Benefits Trends (EBTS).
Rajesh Relan, Managing Director, MetLife India Insurance Co.Ltd. said, “Despite worries about funding a comfortable retirement or outliving their retirement savings, many full-time workers in developing and mature economies, have taken few or no independent steps to plan for retirement”.
In India, while almost three out of four employees (71%) say they are “concerned” about outliving retirement money, only one out of every three (35%) say they have taken steps to determine retirement needs; only 20% say they have done actual planning for retirement.
Further, in a sharp departure from the other countries surveyed, one-third (33%) of Indian employees say they never expect to retire – which may account for why 80% of all employees say they have not done any retirement planning.
Of those Indian workers who have planned for retirement, nearly six out of ten (58%) say they have either achieved or are on track to achieving their retirement goals.
Helping Employees manage longevity risk at the workplace
Many of the employees surveyed recognize the importance of retirement benefits and expressed interest in receiving both financial and retirement planning products through the workplace. Nearly half of Indian employees (48%) whose employers do not offer retirement benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost. About two in every three Mexican employees (66%) are interested in receiving advice from a financial advisor regarding their retirement savings.
In the US, the desire for financial planning guidance is on the rise; nearly half of employees surveyed (49%) are interested in financial planning assistance for retirement issues, up from 38% the previous year.
More than a half (54%) of Australian employers are receptive to offering financial planning services, including personalized advice, to employees and nearly one-third of employees are interested in having employers provide this type of service. In the UK, 61% of employees already consult with financial professionals, and 29% of employees are interested in having their employers offer this service.