Top 6 reasons for young Indians to worry a lot about post retirement life?

Updated: Mar 15

26% of Indian youngsters say a crucial trigger for their retirement planning from early 40's is the need of being dependent on their children.






The pandemic is bringing deeper changes in young Indian’s habits. There is a sudden reduction in spending and preference is given to savings. The young are focused on channelizing funds to secure their future. Especially, when it comes to their post-retirement. The pandemic like COVID has accelerated many changes in retirement landscape. Government is also providing a further boost to retirement planning schemes by implementing tax benefits on long-term retirement savings.


What made these changes? Why youngsters are worried about post-retirement life? And, What is the best to do now? Let’s figure out……


Top 6 worries of Young Indians on Post-Retirement Life

Life at Retirement Homes
Source: PGIM India Mutual Fund Retirement Readiness Survey 2020

Top 6 reasons of Young Indians on investing in Retirement Homes in India


1. Cultural Shift:

Cross- cultural marriages has tuned the world into a global village. Due to this, views on retirement have mixed feelings. For example, an Indian typically wants a stress free, limited lifestyle. Whereas, an American wants to move around the world, spend and enjoy. This is giving a confusion as in where to settle and how to settle in late 60’s. So, people are planning for the retirement life accordingly to their aims individually. People very well understood, that they are going to be “alone” at the end of the life and they need a support for sure. Hence, buying a retirement home is one of the must-have items in the lifetime bucket list.


2. ‘Reverse mortgage’-type care arrangement for their children

As economic issues bites, employment falls, many fear their children may be unable to fend for themselves. And, as a parent’s, they feel that their ability to help will decline with age. Thus, they feel compelled to plan something that will provide support to their children if required. It’s a kind of ‘reverse mortgage’-type care arrangement. Similarly, children are also using Retirement homes for the same as a format of traditionally supporting their parents today; tomorrow, it can be used by them (children)


3. Alternative Income

Retirement homes are minimum guaranteed means of alternative incomes. Because, these are the need of the hour. If one family leaves, there is always the second to occupy. More-so, the retirement communities are also coming up with property management services. So, no need to worry about rentals and tenants. If the retirement community is located in Tire-II cities, the rent can be mini 7k -10 K depending on the amenities offered. In cities, the rent can be mini 15k. But as seniors need a peaceful environment- most preferred places to live would definitely less populated and less polluted Tier-II cities.


4. Decline in traditional family culture

Gone are the days where daughter-in-law takes care of in-laws. Everyone is busy and are independent. The traditional joint family system is declined now. It’s all nuclear families. If at all, there is a joint family- most of them are under the control of some caregivers. Senior’s want to be independent and self-sufficient.


5. Become more financially self-sufficient

There needs to be a comprehensive, adequate, and sustainable retirement and pension system, one that can help support the future financial needs of today's pre-retirees. Even though India’s young population will continue to grow in the next few decades, the economic and technological implications of a longer-term decrease in the labor force cannot be ignored. For example, IT companies set to slash 3 million jobs by 2022 due to automation. So, the present pension schemes and saving schemes might not be much fruitful for future needs. The spotlight on Retirement survey by Limra anticipated that there is a huge gap between the pension schemes and funds they need to lead a comfortable retired life. So, to become self-sufficient, young Indians are making wise investments today.


6. Change in Wealth-Generating Goals


Retirement Homes at India
Source:PGIM India Mutual Fund Retirement Readiness Survey 2020

After 60, it’s all about spending wisely for themselves and for their children. Many are pushed towards retirement homes by the care services they provide along with accommodation. The support system provided by retirement communities to handle their health conditions, from lifestyle diseases to critical illnesses.


Retirement Homes is a perfect retirement plan for youngers in India

Most Indians have their children’s needs (education, marriage etc.) as top priorities. So having a solid family’s financial security is the first thing to plan and work on. After that, they are mindful of the looming possibility of medical emergencies. For that, they thrive on achieving physical and mental wellbeing. Further down the list, they desire a comfortable, stress-free lifestyle from early 65 onwards. There comes the Retirement planning in the list of priorities. But the younger Indians are rising their class of living comfortably with an element of style & luxury is becoming aspirational. It’s because the youngers have grown up with the comforts of the post-liberalization economy. Whereas older Indians tended to prioritize the financial security. This thought is making the younger Indians to invest on retirement homes right from their early 40’s. Retirement Homes are serving as a future investment for themselves. Till then, they are considering it for their parents.


Harmony Retirement Community at Mysore

Harmony By Tapovan Estates is one kind senior living communities of South India. We are located in Mysore, Karnataka. We are the only Retirement Homes players in Mysore who has taken the responsibility of constructing 400+ inventory with all senior care services and property management services are taken care of single the brand. We believe in having no string attached to any vendors. We evolved with a vision of serving senior citizens coving 360-degrees of elderly solutions. The entire complex is fully senior compliant. The apartments are fully senior friendly. The amenities like super market, ATM, medical center, geriatric doctor services and engagement activity manager are completed located with in the complex. We are there for you 24/7.


Retirement Homes in India
Retirement Homes for Senior Citizens at Mysore


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