HSBC Insurance, Canara, Oriental Bank life insurance venture to focus on retirement planning

According to a new study, The Future of Retirement-It's time to prepare, even though Indians are the most optimistic on their post retirement preparations in a 15-country survey, an overwhelming 58 per cent do not know what their retirement income will be like.

The study was conducted by the three-way life insurance joint venture between HSBC Insurance (Asia Pacific) Holdings Limited, Canara Bank and Oriental Bank of Commerce.

Following the findings, Canara HSBC Oriental Bank of Commerce Life Insurance Company, plans to focus on inculcating financial discipline and retirement planning for customers and its shareholders.

As per the report, 42 per cent Indian respondents topped the list on feeling well prepared to handle their retirement amongst the 15 countries surveyed.

However, 58 per cent of the respondents in India do not know what their retirement income will look like. One of the factors contributing to the unpreparedness is a lack of understanding about long-term finances over short-term. Fifty nine per cent of survey respondents in India understood their short-term finances very well and 50 per cent are confident about their long-term finances.

According to Harpal Karlcut, chief executive officer, Canara HSBC Oriental Bank of Commerce Life Insurance Company, ''India has a high saving ratio compared to other countries. However, the survey reveals that the motives of saving are more skewed towards saving for children accounting for 35 per cent of savings rather than saving for retirement, which accounted for only 12 per cent.''