Indians Need Rs 3.5 Crore For Comfortable Retirement, Says HSBC Report

Indians will require approximately Rs 3.5 crore ($401,000) to retire comfortably, according to a recent report by HSBC, as rising costs, inflation, and increasing life expectancy reshape the way people approach long-term financial planning.

Titled “Affluent Investors Snapshot 2025,” the report outlines how Indian investors are gradually shifting their focus from short-term aspirations—such as travel, education, and property purchases—to more long-term priorities like securing their retirement. The study highlights that while short-term goals remain important, there is a growing recognition of the need for financial sustainability in later life.

Investment Patterns And Confidence

According to HSBC, managed investments, equities, and gold are among the most commonly held financial assets. Notably, gold has seen the most significant increase in asset allocation over the past year, followed by other alternative investment vehicles. In contrast, cash holdings have dropped to 15 per cent during the same period, with investors showing uncertainty about future cash allocations.

"Investors (in India) are concerned about the cost of living and economic uncertainty. Compared to the global outlook, they are extremely confident in their ability to achieve financial goals," the report states.

Emphasis On Family And Financial Wellness

Indian investors also continue to prioritise real estate, supporting family members financially, and maintaining personal well-being. These factors remain central to their overall wealth management strategies.

Starting Early Pays Off

The report strongly advocates for early financial planning. Investors who began retirement preparations in their early 30s reportedly feel more confident about meeting their retirement goals. Those who delayed starting the process often fear they may need to compromise on their post-retirement quality of life.

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Global Retirement Benchmarks

While India's retirement savings target is substantial, it's still lower compared to several other global markets. For instance, the estimated savings required for a comfortable retirement in the US is $1.57 million. Singapore tops the list at $1.39 million, followed by Hong Kong at $1.1 million and China at $1.09 million. These figures reflect the differing cost-of-living standards across countries.

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