Planning Beyond Numbers: CEO Of PGIM India MF Ajit Menon On Rethinking Financial Well-Being & Retirement In India

In this, another insightful episode of The Simple Hai! show, veteran financial journalist Vivek Law engaged in an in-depth conversation with Ajit Menon, CEO of PGIM India Mutual Fund, on the evolving dynamics of financial planning, investor behaviour, and retirement preparedness in India. Drawing on over two decades of experience in financial services and investor education, Menon offered a nuanced and forward-looking perspective on how Indians, particularly millennials and Gen Z, approach wealth creation and retirement.

Financial Anxiety in India: It's Not Just About the Numbers

"People think financial anxiety comes from not having enough money. But very often, it's about relying on just one source of income or one skill," Menon told Law early in the conversation.

According to Menon, the root of financial anxiety is not always numerical. Instead, it often stems from a lack of income diversification. He emphasised the need to develop secondary skills or monetisable hobbies, such as teaching yoga, pet grooming, or organic farming, which can serve as fallback income streams, especially after retirement.

This is crucial in a country like India, where longevity risk is on the rise. We're living longer than before, and our post-retirement lives are getting stretched. The idea that your retirement corpus must last for 25–30 years is daunting, especially in the face of rising medical costs.

Generational Shifts: The Millennial and Gen Z Approach to Finance

Menon also noted a stark shift in the financial mindset of India's younger generations. "Millennials and Gen Z don't just want to build wealth patiently. They want to do it fast. They're changing jobs frequently, exploring multiple careers, and aren't afraid of risk," he said.

This lifestyle represents a sharp departure from that of earlier generations, which typically had single careers spanning decades and placed a strong emphasis on stability and savings. The new generation, by contrast, needs financial planning that is flexible, adaptive, and aligned with their dynamic life paths. Menon called for advisors and financial institutions to rethink how they engage with this cohort and provide tailored, technology-driven solutions.

Retirement: Moving the Conversation from Corpus to Contentment

One of the most powerful takeaways from the conversation is his reframing of retirement planning. "We need to move the discussion away from large, often intimidating corpus numbers to more meaningful questions like, what will make you happy and purposeful in your retirement?" he said.

Instead of treating retirement as the end of economic activity, Menon advocated for viewing it as a new phase of life that can be both productive and fulfilling. Having a second skill that generates income after retirement, even in a limited capacity, can greatly reduce financial dependence and enhance psychological well-being.

"Retirement should not just be about financial survival. It should be about emotional and social fulfilment too," he remarked.

Equity as a Long-Term Wealth Creation Engine

In a clear endorsement of equity as a critical component of any long-term investment strategy, Menon shared his conviction: "Equity is the asset class that captures human progress. It reflects innovation, enterprise, and aspiration."

While investors often diversify across asset classes such as gold, bonds, real estate, and now digital assets like Bitcoin, Menon reiterated that equity remains unmatched in its ability to deliver inflation-beating returns over the long term. He advised investors to harness this potential through mutual funds, especially systematic investment plans (SIPs).

Technology and Automation: Bridging Behavioural Gaps in Investing

Menon also highlighted how technology has played a transformative role in democratising access to investing. "Tools like SIPs, top-ups, and SWPs help investors automate their investment behaviour, eliminating emotion-driven decisions like panic selling or timing the market," he explained.

These features allow investors to align their investments with income growth and spending needs. For example, an SIP with a top-up ensures that as an investor's income rises, so does their investment contribution. Similarly, SWPs provide a disciplined approach to withdrawing funds in retirement without disrupting long-term compounding.

"Automation helps correct human behaviour," he noted. "The less emotional interference, the better the financial outcomes."

The Case for a Holistic Financial Advisory Ecosystem

India's financial advisory landscape remains fragmented, with multiple regulators governing insurance, mutual funds, pensions, and loans. This results in scattered advice and confusion for consumers. Menon advocated for a unified, solution-based financial advisory model.

"A household needs advice on tax, investments, insurance, loans, and retirement. But often, they end up dealing with different agents and institutions for each. We need advisors who are trusted, well-informed, and can look at the full picture," he said.

He believes that as the profession matures, driven by tech-savvy, younger advisors, it will become more integrated, trusted, and client-centric. "The next generation of advisors will speak the language of today's investors, and that's how the trust gap will close," he added.

Ajit Menon's Journey: From Marketing to Money Management

Menon’s professional trajectory, which began in telecom marketing before transitioning into finance, provides him with a unique vantage point. His early exposure to branding and consumer behaviour informs his current approach to investor education and retirement awareness.

Despite the rapid growth of mutual funds in India, he remains grounded about the work ahead. "There is still a vast, under-penetrated population that remains outside the formal investment ecosystem. We need more inclusive, accessible education around financial products," he asserted.

Financial Well-being: A State of Mind, Not Just a Bank Statement

In closing, Menon offered a profound redefinition of financial well-being. "It's not just about how much money you have. It's about how secure and purposeful you feel about your financial life," he said.

He distinguished between being happy and trying to be happier. "True well-being comes when you stop chasing more and start aligning your money with your values and goals. That's when finances stop being a source of stress and start being a source of strength," he concluded.

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