National News: Traditionally, the retirement age is considered to be 58 to 60 years, but the youth of India are now seen leaving this line far behind. A recent survey conducted by Grant Thornton India has revealed that a large number of youth aged 25 years or less are planning to retire before the scheduled time.
43% of the youth included in this survey expressed their desire to retire at the age of 45-55 years, while 56% of the participants are planning to retire between 55-65 years. Interestingly, 55% of the respondents expect a pension of Rs 1 lakh or more per month after retirement.
Investment priority: Government-backed schemes and high-return options
Awareness about investment is also increasing rapidly among the youth. According to the survey, 39% of the respondents consider government-backed pension schemes to be the safest and most reliable option. At the same time, 31% of the youth have shown interest in high-risk and high-return investment options. This shows that the younger generation is also ready to take risks, provided the returns are attractive.
Most youth not satisfied with current investments
The survey also revealed that only 11% of the participants feel that their current investment is sufficient to meet future pension needs. This means that most of the youth have still not been able to prepare enough for pension and they need to reconsider their financial planning.
Central Government Initiatives: UPS and NPS Vatsalya Yojana
The government has also launched several schemes to strengthen the pension system. One of these is the Unified Pension Scheme, which promises to give 50% of the last salary to government employees as monthly pension. This scheme guarantees a minimum pension of Rs 10,000 and also ensures increase of DR from time to time.
At the same time, keeping in mind the better future of the children, NPS Vatsalya Yojana has been started, under which financial security of minor children can be ensured by opening a pension account in their name. In this, contribution can be started with just Rs 1,000 annually, and online registration facility is also available.
Expert opinion
Vivek Iyer, Partner, Grant Thornton India, said, “As the working population in the country is increasing, the gap between people's retirement expectations and their actual saving behaviour is becoming more evident. To reduce this gap, there is a need to develop a strong and inclusive pension system that not only meets the lifelong financial needs of the people but also helps in capital formation and economic stability of the country.”
