The elderly people are likely to be exposed to emotional, physical and financial insecurity in the years to come with the rapid changes in the social scenario and the emerging prevalence of nuclear family set-ups in India in recent years
There is an emerging need to pay greater attention to promote holistic planning including pension Planning, health care planning, fiscal discipline, savings levels etc. in the context of changing family relationships and severely lim¬ited old-age income support.
This presentation offers insights into the marketplace for retirement financial advice, What are the challenges faced by retirees, what financial advisers can do, how they can impact client’s life, and how clients can be steered toward good retired life.
We are now witnessing an acknowledgement among those in their 30s and 40s that working in retirement is, and may have to be, part of their formal retirement plans. Retirement planning no longer consists of simply putting money aside each month.
3. By providing financial protection against
the major 19th century risk of dying too
soon, life insurance industry became the
biggest financial industry of the century
Now
Providing financial protection against the
new risk of not dying too soon enough
may well become the next century’s major
and most profitable financial industry
Peter Drucker
13/07/2014 Neeraj Chauhan, CFP
4. Most Populous countries
2013
Country Population (in Millions)
China 1,357
India 1,277
United States 316
Indonesia 249
Brazil 196
Pakistan 191
Nigeria 174
Bangladesh 157
Russia 143
Neeraj Chauhan, CFP13/07/2014
5. Most Populous countries
2050
Country Population (in Millions)
India 1,652
China 1,314
Nigeria 440
United States 400
Indonesia 366
Pakistan 363
Brazil 227
Bangladesh 202
Congo, Dem. Rep. 182
Neeraj Chauhan, CFP13/07/2014
9. By mid-century, this 60+ age group
is expected to reach 19%
encompass 323 million people, a
number greater than the total U.S.
population in 2012.
Neeraj Chauhan, CFP13/07/2014
13. Almost one-half (47 percent) of
older Indians have at least one
chronic disease such as asthma,
angina, arthritis, depression,
hypertension or diabetes
Neeraj Chauhan, CFP13/07/2014
14. Fewer than 10 percent of Indians
have health insurance from private
or public sources, and about 72
percent of health care spending is
paid out-of-pocket
Neeraj Chauhan, CFP13/07/2014
15. Can’t forecast size of
their retirement bucket
Neeraj Chauhan, CFP13/07/2014
16. Too much life, not
enough money as Less
than 11 percent of older
Indians have a pension of
any sort
Neeraj Chauhan, CFP13/07/2014
17. Shift in formal retirement
savings plan from defined
benefit to defined
contribution
Neeraj Chauhan, CFP13/07/2014
20. Many Indians are heavily reliant on
investments in property and are
hence very exposed to illiquidity &
movements in property values.
Neeraj Chauhan, CFP13/07/2014
30. Retirement planning is smartly shifting
purchasing power from period of high
earnings (the working years) to those
of low earnings (Retirement).
Neeraj Chauhan, CFP13/07/2014
36. A plan that alleviate their
fear, allowing them to
retire with confidence
and leisure.
Neeraj Chauhan, CFP13/07/2014
37. Give an attitude of
abundance over scarcity
with focus on life time
income and spending.
Neeraj Chauhan, CFP13/07/2014
38. Shift focus and
spotlight from
Investment portfolio to
human capital with life
cycle approach.
Neeraj Chauhan, CFP13/07/2014
39. People care more about their
lifetime standard of living than
about their wealth and this
requires a shift from return
management to risk management.
Neeraj Chauhan, CFP13/07/2014
40. In the End
It’s all about Arranging lifetime
consumption in the safest way possible
given finite lifetime income over
building largest possible portfolio
constrained by risk tolerance.
Neeraj Chauhan, CFP13/07/2014