Indians Need Rs 3.5 Crore to Retire Comfortably, Says HSBC Report
Indians Need Rs 3.5 Crore to Retire Comfortably, Says HSBC Report
A new report by global bank HSBC has revealed that Indians aiming for a financially secure retirement will need to save about Rs 3.5 crore, which is roughly USD 401,000. The report, titled Affluent Investors Snapshot 2025, explains how rising inflation, longer life spans, and higher living costs are making people rethink how they plan for retirement.
Cost of Living and Inflation a Major Concern
According to the report, many Indian investors are now more aware of the growing costs of living. With inflation and longer life expectancies, people are realizing that they need to save more than before to maintain a good lifestyle after retirement. Even though many still focus on short-term goals like travel, education, or buying property, more investors are beginning to give priority to long-term financial security.
What Indians Are Investing In
The report points out that Indian investors prefer certain types of financial products. Managed investments, stocks, and gold are the most popular choices. Interestingly, gold has seen the biggest jump in terms of investment over the past year. Other alternative investments have also grown, while the amount kept in cash has dropped to just 15%. There’s no clear idea yet about how cash will be handled over the next year, but people are definitely exploring more options beyond just saving money in banks. HSBC also found that Indian investors are quite confident in reaching their financial goals, even more so than people in other countries. However, the report stressed the importance of starting early. Those who began retirement planning in their early 30s were more hopeful and relaxed about the future. On the other hand, people who started later often feared they might have to compromise on their lifestyle once they stop working.
How India Compares to Other Countries
The report shows that while Rs 3.5 crore is the expected savings needed for Indians, this number is lower than in some other countries. For example, people in the US need around USD 1.57 million for retirement, while Singapore’s number stands at USD 1.39 million. In Hong Kong, it’s USD 1.1 million, and in China, it’s USD 1.09 million. These higher figures reflect the higher cost of living in those countries. Overall, the HSBC report highlights how financial planning in India is changing. With more awareness around future costs and the need to prepare early, Indian investors are starting to focus more on building long-term financial security.
