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Sep 25, 2012

Majority Fret Over Retirement Planning: Survey

image Majority of people across the world are worried that their current savings will not be enough to cover their financial needs after retirement and, hence it is important to start saving now, a recent survey has revealed.

A worldwide survey by management consulting and technology services company Accenture showed that nearly 82 percent of the respondents were worried about their financial situation post-retirement, while about one in six people were confident that their savings will be enough to see them through retirement. The survey, which was conducted among more than 8,000 people from 15 countries, also revealed that nearly 93 percent believe they will need to depend partly or wholly on their personal savings to meet the financial needs of the retired life. The survey results were released on July 25.

People also lack clarity on how to prepare for retirement and how much to save. The survey found that only less than one-third had private investments aimed specifically at addressing their retirement needs. While 53 percent of those surveyed thought they do not have the necessary information to prepare for retirement, 57 percent felt they lack the financial capacity to invest in private pension.

Life insurers and banks are viewed with scepticism as sources of information on retirement planning, the study found, and people are more likely to seek the help of individual financial advisors as well as friends and family. "It is an opportunity not only for life insurers to grow their business but also to help avert what could potentially become a major social issue on a global scale in the next 10 to 20 years,” Accenture Life Insurance Services Global Managing Director Daniele Presutti said.

The survey also found that Indians, Chinese and Americans were the most confident about their current level of savings, while Russians, Japanese and South Koreans were the least confident.

Further, almost all Indians, Mexicans and South Koreans felt it is important for them to start saving now, while less Germans, Britons and French thought so.