Outlook Money 40After40: 90% Of Indians Regret Not Having Started Early, Says Vishal Kapoor Of Bandhan MF

Vishal Kapoor, CEO of Bandhan Mutual Fund, emphasised on the importance of right time for retirement planning, at Outlook Money’s 40After40 Retirement Expo in Mumbai.

He shared key insights from a recent research, and raised concerns on the delay people exercise in taking action, often due to inertia rather than financial constraints. He added that a significant number of individuals regret not starting their retirement planning earlier.

“As many as 90 per cent of Indians actually regret not having started earlier. Most of them were past 50, so it is already too late for them to have started,” he said.

He further revealed that a third of people believe their savings will be exhausted within just five years of retirement, with 24 per cent uncertain of where to even begin their planning journey.

Key Findings From The Report

The study was conducted across metro and Tier-I cities in India, involving 2,000 respondents aged between 25 and 45. The data showed that three out of four individuals have started pondering over retirement, a positive shift from previous years. Despite this awareness, nearly 50 per cent of respondents either have not started or are starting too late. Women, business owners, and individuals in Tier-I cities were identified as being more conscious of retirement planning than their metro counterparts, he said.

Hurdles Of Retirement Planning

One of the key hurdles to retirement planning, Kapoor said, was simple procrastination.

“It just seems to be plain, simple, boring inertia. That is the biggest reason we have not as yet started planning for our retirement,” he said.

While financial constraints and lack of knowledge do play a role, the overwhelming majority simply put off making a decision. “I didn’t feel like doing it today, I think I’ll do it tomorrow,” he said.

Kapoor also addressed concerns about financial independence in retirement. “Almost half of us still feel that it will be not our own savings for retirement, but something else that will get us through,” he said. He cited research showing that 18 per cent of respondents expect to rely on family wealth, 17 per cent believe they will need to continue working post-retirement, and 13 per cent anticipate dependence on their children.

According to Kapoor, deposits and insurance, pension schemes specifically, are still quite popular, but equity mutual funds and stocks are becoming very attractive. He also emphasised on the need for a more balanced approach to investing.

“Retirement portfolios tend to be very conservative. While it will be safe, the challenge with that is post-tax, and it will be very difficult for you to beat inflation. If you don’t know how, get experts. You have to reach out. Don’t procrastinate,” he further said.