Max Life Insurance Company Ltd. (“Max Life”/ “Company”) has unveiled the findings of the fourth edition of its retirement survey, India Retirement Index Study (IRIS), conducted in partnership with KANTAR, the world’s leading marketing data and analytics company.
The study highlights that South India’s Retirement Index stands at 48, maintaining a stable score compared to the previous edition. This score places the region at par with North India while being marginally behind East India (54) and West India (49), as well as the national average of 49.
Despite maintaining stability, South India faces unique challenges and opportunities in retirement preparedness, reflected in its Financial Index remaining at 49, the Health Index at 45, and the Emotional Index at 60.
Rahul Talwar, EVP & Chief Marketing Officer, Max Life Insurance, commented, “As highlighted by IRIS 4.0, South India continues its journey towards building holistic retirement readiness with a steady index score of 48 points.
While there is stability, there is also a need for greater financial planning and health focus as showcased in the slender financial and health index movements.
At Max Life Insurance, we are dedicated to addressing these gaps by empowering individuals with tailored solutions and insights that drive proactive retirement planning. Together, we aim to create a secure future for all.”
Growing Financial Challenges in the South India
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 favoured 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 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, 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 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 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 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.
