ICICI Prudential Life partnered with Quantum Consumer Solutions
to understand India’s attitude towards retirement, money and annuity plans
Here’s what we learned

What did we look for


Retirement-specific behaviour

How people view retirement, what their goals are and how do they prepare for retirement

Retirement savings and investment behaviour

How people save for retirement and what their hopes/dreams and worries include

Retirement income plans

What people find important when it comes to investing for retirement

Who did we ask


45 - 50 Years51 - 59 Years60 - 75 Years

Number of people :

PAN India

Urban cities > 2 million population

Retirement-specific behaviour

"They say life is over after retirement. But I say life starts after retirement"
58, Lucknow
We found that Indians view retirement in two ways:
A time where they wish to continue living a comfortable lifestyle
A time where they wish to upgrade their lifestyle and grow
Continuing one's lifestyle:
Continuing one's lifestyle is not just about survival. After retirement too, people want to live a comfortable life,
as well as stay productive
Attitude of maintenance
Life post retirement should be a disciplined one
It is very important for me to find peace everyday spiritually
It is important to be productive after retirement
Upgrading one's lifestyle:
A large percentage of people want to move beyond what they currently have. They view retirement as a phase
to grow oneself and have fun
Attitude of renewal/rekindle
Retirement means doing things which you have been putting on the back burner all this time
It is very important for me to extend my social circle
Retirement gives you the opportunity to work on yourself as full time job

Retirement goals identified

"Retirement is like a pause, not a stop. I will do a lot of things after I retire, like building a new house, travelling abroad, helping the needy and growing my business"
56, Kolkata
Worries about retirement
Indians have realistic approach towards retirement. While they view retirement positively, they do have a few anxieties
about retirement as well

These include health issues due to termina illness, inflation impacting their savings and the financial wellbeing of their spouse
"When I hear the cost of different treatments like open heart surgery and cancer treatment, it is massive. If you get one of these diseases, it can really cause a dent in your finances"
62, Chennai

Saving for retirement

  • Most Indians have a ballpark figure in mind for their retirement savings. However, for many, it might not sustain their retirement years. A target amount that has been thought of, may not be sufficient to fulfil retirement goals and address all their worries
  • This is a reason why one should consider reinvesting one's retirement savings in products that offer regular income post retirement
(This amount is understood by people as mostly money in bank when retiring and does not include real estate or monthly govt. pensions)
Allocation of corpus post retirement
  • For daily sustenance/monthly expenditure
  • Saving for your spouse/family as a legacy
  • For further investment
  • For medical requirements, regular or sudden
  • For your hobbies/interests like travelling, gardening etc.
  • For donating to charity/spiritual work
  • Others

Investing for retirement

"One thing that I have learnt over the past years is to never put all eggs in one basket when it comes to investing for retirement"
56, Chennai
When it comes to investing for retirement, Indians prefer multiple financial instruments. Given the pandemic and volatility of markets, they seem geared towards instruments offering assured returns. PPF, NPS and annuity plans that give one a regular income after retirement are the most popular instruments for investing

They also want holistic investment planning to achieve all their retirement goals, for which they seek advice from experts but also do their own research
People find themselves concerned about:
Not having enough money for retirement
Not knowing the right way to invest/grow money
Making hasty and uninformed decisions by reacting to market trends
Most preferred investment
instruments towards retirement:

Annuity / retirement plans

National Pension Scheme

Public Provident Fund

Fixed Deposits

Post Office Savings Scheme

Other sources of income

Indians prefer to rely on time-tested sources for receiving income post retirement

Those who are not relying on retirement income plans, rely on sources such as interest on FD, monthly pension, income from businesses and more

However, while many investment options can help one save for retirement, opting for plans specially designed for retirement is helpful, as these plans help grow money and give guaranteed* income
*An annuity plan provides guaranteed income only when all due premiums are paid on the policy
Sources of income post retirement

How can one feel well-prepared for retirement

People who feel prepared started investing for retirement when they are nearing the age of
40 years
They put aside an average 17% of their income towards retirement
They rely mainly on investments in NPS, FD and plans that give them regular income to be retirement-ready
Regular income post retirement from NPS/annuity plans is a source of confidence for the majority of Indians who are prepared for retirement
Source of income post retirement
Income from monthly pension
schemes - NPS, annuity plans

Retirement Income plans

Retirement income plans, also known as annuity plans have recently become popular in India. While some think you need a large amount to invest in annuity plans, recent annuity plans let you invest smaller sums while giving you many more advantages
Intention to invest in annuity plans
amongst non-users
65% non-users intend
to invest in annuity plans
  • Will definitely invest
  • Will probably invest
  • May or may not invest
  • Will probably not invest
  • Will definitely not invest
Secure investment
These plans are not market linked, hence investments stay safe and accessible
Guaranteed* income
The plans offer regular life-long income, ensuring that one can continue living comfortably, stay prepared for emergencies and achieve one’s retirement goals
These plans allow one to choose how much to invest and how often one gets payouts of guaranteed* income. They also allow the withdrawal of money in case of an emergency, which offers a sense of control

*An annuity plan provides guaranteed income only when all due premiums are paid on the policy

So what drives people to choose an annuity plan

A ‘Trustworthy brand’
People prefer to invest with a company that is trustworthy, technologically savvy and one that gives better returns

What does this research mean for you

Retirement is a new chapter, largely viewed as a positive period in life when you can live on your own terms

To stay prepared and achieve your goals after retirement, it is important to invest in a plan that gives you a regular income. So you can continue the lifestyle you are used to, as well as fulfil your goals

Investing in a retirement income plan, from a trustworthy brand, early on in life will keep you prepared and help you make the most of your retirement
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