Indians are best in savings, most retirement ready: Accenture survey

[Sir john]

Accenture conducted a global survey to better understand how people across the world were planning for their retirement. The objective was to have a clear understanding from a global perspective of what people think about this society wide issue, and how the financial services industry and life insurers could help address it. Compared to the global average of 82%, Britons, Germans, Australians and Americans are the most optimistic with 65%, 66%, 69% and 70% of respondents respectively who say they are worried about their financial situation after retirement. South Koreans (95%), Mexicans (92%), Russians (92%) and Spanish (91%) are the most pessimistic. Indians were slightly higher than the global average at 84%. Indians, Chinese and Americans are the most confident about their current level of savings with 39%, 28% and 21% respectively believe that they are saving enough for their retirement, compared to the global average of 16%. Russians (4%), Japanese (5%) and South Koreans (8%) are the least confident. Indians and Chinese also appear to have a good understanding of and access to information on the different retirement planning options, with 86% of Chinese and 64% of Indians believing they have the necessary information to prepare for retirement, compared to the global average of 47% Indians (68%) and Chinese (61%) are also more confident about knowing how much they need to save every month to guarantee their standard of living at retirement, compared to the global average of 33%. Almost all Indians (99%), Mexicans (98%) and South Koreans (96%) say it is important for them to start saving now, while they are only 79% of Germans, 81%of Britons and 83% of French to say so. Some 39% of Indians have already privately invested in a retirement product compared to 12% in Russia, 19% in Australia, 20% in Brazil and 29% in Spain. People in the developing economies are much more conscious of the brand of the financial institution that manages their retirement products, with an overwhelming majority of respondents in China (99%), Brazil (97%), India (96%), South Korea (94%), Poland (93%), Mexico (91%) and Russia (90%) saying brand is important in their retirement product selection criteria. While less than half (49%) of Germans, and only 58% of Britons say brand is important in their selection. Accenture commissioned a survey of 8,112 individuals between 25 and 60 years old in 15 countries. Respondents were representatives of the population in gender, age and income. The survey was conducted through telephone in March 2012. The 8,112 respondents included 1,000 from the U.S., 539 from South Korea, 529 from Mexico, 520 from Poland, 508 from Spain, 506 from Italy, 503 from Brazil, 502 each from France, Germany and Russia, 501 from the UK, and 500 each from Australia, China, India and Japan.

[Desi Cartman]

I dont know how and what sample they collected but most of middle class (and up) youth inherits a house so its much more easier to worry about a retirement fund.

[Clarke]

Bogus data; more than 90% of the country's labor force is unorganized.

[punjabi_khota]

Half of India barely manages to survive, while 96% is conscious of brand of financial organization managing their "wealth".

[Sir john]

i never saves money eat,drink nd drive i know :peter:

[kabira]

Saving money has always been part of culture.. I have been always taught to save certain percentage and also donate certain percentage..

[Vilander]

This is a classic example of how a sample size can skew a research outcome. Clearly when 26% is BPL even by indian standards and when 51% are poor by global standards, there is no way that the figures mentioned in this survey are correct. Unless a context was attached, like middle income group etc.

[King Khan]

Well, I pay abt 20% of my salary for insurance premium atm; IMO its high & hard burdain for me. I was broke 5-6 years back once, dont wanna go back there again. Even if I pay 30% of it, I still cant be confident with outcome at the retirement, thats fact for me. About savings, since I dont drink alcohol and smoke anymore I'm making much better savings than before. I stop donating beggers & I'm on brothel rehab now to reduce spendings, someone told me even having an illiterate housewife also helps savings. Yep there are some cultural effect on savings if you follow them.

[panesarv]

**** saving money

[Mariyam]

On a related note, how reliable are such surveys? In this one, for instance, the 'research' depends on what people say. 36% of Indians may claim that they have invested in some monthly pension scheme. But how does one guarantee that they aren't lying or exaggerating? We had contacted a noted Market Research company to carry out surveys on mid scale Iron and Steel manufacturing plants ( just data collation and feedback from customers and the companies to see if any gaps existed in what the companies say they provide and what the customers perceive the company as). The customers were segregated on the basis of their organizations purchasing power/ turnover etc. Most of them underplayed their/ their organizations earnings to avoid problem with tax authorities. Long story short, I would take the results of all such surveys with a pinch of salt.

[Roshanrocks]

After what happened to "speakasia" survey... yea... pinch of salt it is... :giggle:

[DomainK]

On a related note, how reliable are such surveys? In this one, for instance, the 'research' depends on what people say. 36% of Indians may claim that they have invested in some monthly pension scheme. But how does one guarantee that they aren't lying or exaggerating? We had contacted a noted Market Research company to carry out surveys on mid scale Iron and Steel manufacturing plants ( just data collation and feedback from customers and the companies to see if any gaps existed in what the companies say they provide and what the customers perceive the company as). The customers were segregated on the basis of their organizations purchasing power/ turnover etc. Most of them underplayed their/ their organizations earnings to avoid problem with tax authorities. Long story short, I would take the results of all such surveys with a pinch of salt.

Most surveys are actually highly biased. People tell lies to their doctors and lawyers, why would they not tell lies to an unknown guy asking questions? Most people would answer what they should have done or what they plan to do, not what they have done. Most surveys guarantee anonymity hoping to get the right answer, but anonymity does not necessarily make people tell the truth. It gives them an opportunity to live a fantasy as well. Look at the internet that gives anonymity to everyone and what people do is create and live fantasy cyber lives.