Towers Watson’s Savings Attitudes Survey (India and China) says that alongside rapid economic growth witnessed by India and China, workers in both countries face challenges accompanying increased life expectancies and post retirement life.
The survey finds that approximately 90% of workers in China and 80% of workers in India expect to retire at age 60 or younger with only moderate reductions in their spending power thereafter. In terms of average annual savings as a percentage of income, the study shows a high ratio of 35% for China and 24% for India, indicating a strong savings culture in both countries.
Sharing perspective, Anuradha Sriram, Benefits Director, Towers Watson India said, “Secure retirement benefits, whether mandatory or voluntary, are critical for an employee's future. With benefit costs ever increasing, employers need to facilitate retirement savings and raise awareness among employees by going beyond mere provision. Avenues such as the National Pension System (NPS) will definitely attract employer attention as a sustainable retirement investment vehicle for employees going forward. In a competitive growth environment, companies are looking at innovative ways to manage talent; enabling and supporting employees towards their retirement saving needs is a critical step in that direction”.
The survey sampled individuals working for large firms (those employing at least 1,000 people) in urban areas of China and India. The resulting sample includes 2,261 employees in China and 2,440 employees in India. The average age of respondents is approximately 33 in both countries with around 65% of Chinese respondents and 72% of Indian respondents being male.