The trend of early retirement is increasing rapidly among the youth, a shocking revelation in the survey
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Although private or government sector employees retire on completion of 58-60 years of age, but nowadays most of the youth are preferring retirement before the stipulated time limit. This has come to light in a survey conducted by Grant Thornton India on youth of 25 years or less.
Let us know other special things related to the survey..
- 43 percent of the respondents expressed their desire to retire at the age of 45-55 years
- 56 percent of the youth are planning to retire between the ages of 55-65 years
- 55 percent of the respondents expect a monthly pension of Rs 1 lakh on retirement
- 11 percent believe that their current investment is sufficient to meet the pension expectation
Government-backed schemes are the preferred option for investment
According to the survey, government-backed schemes remain the most preferred option for investment among youth of 25 years or less. A total of 39 percent of the respondents are in favor of such schemes. High risk, high return schemes are especially attracting the youth and 31 percent of the participants below the age of 25 have expressed their desire to invest in these options.
The government has also introduced UPS
The central government has introduced the Unified Pension Scheme (UPS) to provide a fixed pension to its employees. In UPS, government employees will get 50 percent of their last salary as a lifetime monthly pension. In this, dearness relief (DR) will keep increasing from time to time. UPS guarantees a minimum pension of Rs 10,000. State governments also have the option to adopt this scheme.
NPS Vatsalya Yojana for better future of children
The government has also launched Vatsalya Yojana under the National Pension System (NPS). Its objective is to secure the financial future of children through a pension account. This scheme allows minors to subscribe. In this, the contribution starts from one thousand rupees annually. An online platform is also available for easy registration. This scheme is also available for Non-Resident Indians (NRIs).
As our working population grows, the gap between expected retirement needs and actual savings behaviour is becoming increasingly evident. Bridging this gap requires a strong and inclusive pension ecosystem that promotes capital formation
