In the 1970s in India, when the average life expectancy was just 49.7 years, adults hoped to live long enough to see the birth of their grandchildren. 50 years later, we are at a moment where the death of someone in their 50s is shocking. The average life expectancy for men is now 68.4 years, while that for women is slightly higher at 71.1 years. This is understandable: India has seen vast improvements in access to healthcare at all levels, and government-led vaccination programs have saved countless lives, we are more educated and we understand much better how to stay healthy and active.

Although living longer is clearly a desired outcome, it brings with it a key reality: the need to plan for a long life and the fear of outliving our savings. It is in this context and in this changing environment that the India Retirement Index Study (IRIS) by Axis Max Life Insurance takes place.

With health parameters improving, most of us will outlive our jobs and retire. But as the IRIS 4.0 study shows, 1 in 2 people surveyed believe that their savings will run out in just a decade. Since most of us retire at age 58 or 60, this translates into destitution in old age. 77% of those surveyed are concerned that rising medical costs will eat into their retirement kitty, while 78% say the rising cost of living is a concern. 31% don’t even know how to calculate the retirement capital they will need to maintain their current lifestyle.

These are the mentalities and assumptions that we decided to challenge with the IRIS survey. Now in its fourth year, the IRIS survey continues to inform, educate and challenge people like us to face the realities of what our retirement will look like. Just as importantly, IRIS survey results also inform insurance and retirement solution providers about key trends and customer needs, allowing them to create products that serve us better.

The Long Term Horizon: Millennials and Early Retirement Planning

The IRIS survey found that 44% of Indians believe retirement planning should start before age 35. It also found that 93% of people over 50 feel the same way and wish they had started planning for retirement much earlier.

At Max Life Insurance, we know that investing can seem intimidating, and the more complex a product is, the more hesitant you are to take the plunge. Aimed at Generation Z and Millennials, Max Life Insurance offers a range of plans designed to provide financial security, without the hassle of complexities. Although these plans offer various customizations, the basic plan is simple: you pay a fixed premium for a fixed period of time, in exchange for guaranteed benefits and unguaranteed benefits, including lump sum payments and a regular income.

The Smart Wealth Advantage Guarantee Plan, for example, is a great way to build a corpus for specific needs – like making a down payment for your dream home, supporting your children’s education or any other milestone. The plan also offers an option to create additional income streams, combined with life cover. This way, you can start generating income today or support yourself later when you retire.

Capitalizing on High-Earning Years: Mid-Career Solutions

Our mid-30s are often when most of us hit our stride: we’re in middle management positions at work, our families are growing, we’re considering buying our home, or we’re in the process of paying off our debts. home loans, and the family budget is largely in the green.

It’s also the best time to start planning for retirement, if you haven’t already, as the IRIS survey shows. This is the stage where our investments move from pure growth investments to a mix of investments that generate both growth and income. At this stage, it is essential to create multiple sources of income. After all, we can’t plan for our retirement based solely on accumulating sufficient savings.

To this end, the Max Life Smart Wealth Advantage Participating Growth Plan combines growth and income, in addition to giving you the flexibility to choose your own premium payment schedule and monthly income schedule. Additionally, for those who benefit from a late-career windfall, the Max Life Smart Wealth Annuity Guaranteed Retirement Plan creates security through a non-participating, untied annuity plan that begins generating a lifetime income after retirement for you, or for you and your spouse if you choose the joint life annuity option. In addition, the death benefit guarantees that your initial investment is preserved for your heirs, being returned to them 100%.

The final sprint: ensuring the retirement of baby boomers and pre-retirees

It’s easy to feel like you’ve missed the boat at this point, with everyone telling you that you should have started investing for retirement 15 years ago. However, I want to emphasize that you can still make a significant difference, not least because at this stage you don’t have to account for inflation as much as younger people.

Annuities are a great way to create stress-free passive income that you can rely on. The Max Life Smart Wealth Annuity Guaranteed Retirement Plan, for example, guarantees a lifetime income and gives you the flexibility to tailor your policy to your specific needs. The Max Life Guaranteed Lifetime Income Plan is another program that lets you turn small savings into big income – especially if you choose the deferred annuity variant that allows your investment to multiply.

Live longer, live better: the growing role of women in preparing for retirement

One of the results of the IRIS survey that pleased us the most is the success with which women are preparing for retirement. 68% of women have started investing for their retirement (compared to only 61% of men) and 66% are convinced that their current investments will guarantee them a secure retirement. 58% of women have regular health checks (for men the figure is just 52%) and 48% are confident they will be fit and healthy in their golden years. 49% of women have health insurance and 39% engage in active physical activities.

If women tend to outlive men, it is by taking better care of their health today. They invest in their ability to be physically independent and active into their golden years, breathing more life into them and surviving this critical period. This, combined with their financial independence, creates a much more positive outlook for a retirement filled with hobbies and activities, travel and family time that is not tinged with dependency.

While women have access to all of the options we’ve already mentioned, they may find that many of these offers have specific discounts and special rates aimed at them.

Special cohorts: gig workers and DINK (double income, no children)

Situated on opposite ends of the spectrum, gig workers and DINKs both have unique retirement planning needs and challenges. Gig workers often face fluctuating income from month to month, making regular investments difficult. This translates into future concerns about meeting their family’s basic needs during retirement and their children’s future. DINKs, on the other hand, are less concerned about depleting their savings or being unable to meet their medical, basic, and luxury needs. Since DINKs have fewer expenses, they can focus more on their own retirement.

For these two cohorts, several examples and products explained in this article apply: Gig workers may be better served by annuities and other investment plans that create additional income streams, giving them both stability and the possibility of investing more: launching a virtuous economic cycle that brings even the most ambitious financial objectives closer to their achievement. Since DINKs have a larger pool of disposable income, they can be more aggressive in their investments – both in terms of the amount of investment they make and the investment vehicles they choose .

Holistic Retirement Planning: Going Beyond Financial Preparedness

There’s no doubt that financial preparation is the key to a secure, stress-free and fun retirement. However, we believe it is just one pillar of a triad: financial preparedness, health preparedness, and emotional preparedness. It starts with personal reflection about our health and lifestyle, and education on how to better care for our bodies and minds. It also involves being emotionally prepared for a time in our lives when our purpose will come from something other than our work.

It’s an investment in our own agency – our ability to take charge and plan our own lives with confidence. I can’t imagine a better retirement than one where we can all feel empowered to make our own choices and navigate the world independently, even as we age.

The author of this article is Sumit Madan, Chief Distribution Officer, Axis Max Life Insurance.