An HSBC report found that only 33% of Indians save regularly for retirement, and nearly 68% of the working age population expect their children to support them in their retirement..
You can estimate your retirement needs very roughly, using a few simple steps. Let's suppose you currently earn INCOME (approximately INCOMEAFTER TAX after tax). You plan to retire aged 65. You are fit and healthy. Several members of your family lived into their nineties, so you might need an income for as many as thirty years. Your pension/retirement goal is:
(INCOME AFTER TAX x 2/3) = (INCOME AFTER TAX x 30 years) = SAVINGS GOAL
[Current salary after tax x 0.66 x Number of years = Savings goal]
(Remember that you can subtract the income from at least one state or government sponsored pension/retirement income over the same period.)
Please note: The calculation is meant for illustration purposes only and it should not be construed as promise or advise.
How to avoid the most common financial threats
How good habits can help you achieve financial wellbeing
Find out about what being financially fit means
This publication has been issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), India, Incorporated in Hong Kong SAR with limited liability, for the information of its customers only. This publication does not constitute investment advice or an offer to sell, or a solicitation of an offer to purchase or subscribe to any investment. The information herein is derived from sources believed to be reliable and the concerned Information Provider(s) have duly authorised HSBC to use such information provided by them. Whilst every care has been taken in compiling the information, HSBC and the concerned Information Provider(s) do not guarantee, or make any representation or warranty and accept no responsibility or liability as to its accuracy or completeness and shall not be liable for damages arising out of any person's reliance upon this information or any action taken or not taken as a result of any material contained in the publication. Expressions of opinion are those of HSBC and the Information Provider(s) only and are subject to change without notice. HSBC has not independently verified any information provided by the Information Provider (s) or that has been derived from the sources believed to be reliable by HSBC. Opinions expressed herein do not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this publication. This document is for circulation in India only. No part of this publication may be reproduced or stored in a retrieval system without the prior written permission of HSBC. Any liability is accordingly expressly disclaimed by HSBC, its officers, directors and employees.