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How Indians Can Achieve Financial Stability in Retirement: Learn from Taresh Bhatia’s Research Findings

Intriguing Insights from Taresh Bhatia’s Groundbreaking Research Report on Retirement Planning in India

As a CERTIFIED FINANCIAL PLANNER and a coach at the Richness Academy, I have dedicated my career to guiding clients toward financial freedom. Whether you’re a working professional, entrepreneur, young married couple, retiree, single mother, or divorced woman, effective financial planning can bring you the stability and richness you deserve. In this blog, I will share insights from recent studies on retirement planning in India, providing actionable advice based on concrete data and findings.

Introduction: The Importance of Financial Planning

Financial planning is a cornerstone of a secure and fulfilling life, especially as we approach retirement. In India, the landscape of retirement planning is complex and multifaceted, influenced by socio-economic factors, cultural norms, and varying levels of financial literacy. Understanding these dynamics is crucial for anyone aiming to achieve financial freedom and security in their later years.

Financial Planning Behaviors in India

One of the critical aspects of financial planning is seeking professional help. According to a study by Misra (2018), financial advisors play a significant role in guiding retirees on pension fund management. The National Pension System (NPS), for instance, charges management fees of 0.0102% for government employees and up to 0.25% for the private sector. This system highlights the importance of understanding the cost and benefits of various retirement plans available.

Another significant finding from Batra (2013) reveals that about 23% of the Indian population invests in mutual funds as part of their retirement strategy. This growing awareness and preference for mutual funds underscore the need for diversified investment portfolios to secure financial stability.

However, there remains a considerable gap in awareness about systematic withdrawal plans (SWPs) as tools for generating monthly income during retirement. Only 35% of potential retirees are aware of SWPs and their benefits, according to Thundiparampil (2019). This gap highlights the need for better financial education and promotion of these instruments.

Dependency on Family and Social Security

In India, traditional family structures often influence financial planning behaviors. Many retirees depend on their children for financial support due to inadequate savings. Bhagat & Unisa (2006) found that about 40% of those aged 60 and over continue to work, while 61% of males in this age group are still part of the labor force. This dependency reflects the changing dynamics of family support systems and the need for robust personal savings.

Challenges in Financial Literacy

Financial literacy remains a significant barrier to effective retirement planning. Chauhan & Indapurkar (2018) highlight that many individuals lack basic financial knowledge, affecting their ability to make informed decisions about saving and investing for retirement. Despite high confidence among working Indians about their retirement readiness, actual financial preparedness is lacking due to poor financial literacy.

Health Expenses and Financial Vulnerability

Long-Term Success

Health expenses pose a significant financial burden on retirees. Mohanty, Sahoo, & Rashmi (2022) found that households with high old-age dependency had a higher probability of incurring catastrophic health expenditure (CHE), with 33.2% of such households facing CHE. This finding underscores the importance of incorporating health care planning into retirement strategies.

Life Satisfaction and Financial Security

Life satisfaction among retirees is closely linked to financial security. Mattoo & Thoker (2011) report that those who are financially independent and have well-planned retirements experience higher life satisfaction compared to those dependent on their children or without adequate savings. This correlation emphasizes the need for proactive and comprehensive financial planning.

Gender Differences in Financial Planning


Women face unique challenges in financial planning for retirement due to lower lifetime earnings, interrupted careers, and longer life expectancy. Hiremath, Afza, & Kumar (2022) note that women tend to be more conservative investors, which can limit the growth of their retirement portfolios. Addressing these challenges requires targeted financial education and support for women to ensure they can achieve financial security.

Also read: How SWP Can Unlock Retirement Riches: Wisdom from Taresh Bhatia, Financial Maestro

Effectiveness of Financial Advertisements

Financial advertisements for retirement planning in India often lack informative content. Gupta & Pradhan (2017) found that 61% of retirement plan advertisements were non-informative, focusing instead on emotional content. This finding highlights the need for more educational and informative advertising strategies to improve public understanding of retirement planning options.

Reverse Mortgages as a Financial Tool

Reverse mortgages are emerging as a viable financial planning tool for retirees, providing liquidity without the need to sell assets. Ashok & Dhingra (2020) demonstrate that reverse mortgages can help maintain investment portfolios during market downturns, ensuring financial stability over the long term.

Actionable Advice for Achieving Financial Freedom

Based on these insights, here are some actionable steps you can take to secure your financial future:

Seek Professional Advice: Engage with certified financial planners to explore various retirement plans and investment options. Understanding the fees and benefits associated with plans like the NPS can help you make informed decisions.

Diversify Investments: Consider investing in mutual funds and other diversified portfolios to spread risk and ensure stable returns.

Educate Yourself: Increase your financial literacy by attending workshops, reading financial literature, and staying informed about new financial products and tools.

Plan for Health Expenses: Incorporate health care planning into your retirement strategy to safeguard against unexpected medical costs.

Encourage Family Independence: Foster financial independence within your family to reduce dependency and ensure that everyone is adequately prepared for their financial future.

Support Women’s Financial Planning: Provide targeted financial education and support for women to address the unique challenges they face in achieving financial security.

Promote Informative Advertising: Advocate for more educational and informative advertising strategies to improve public understanding of retirement planning options.

Consider Reverse Mortgages: Explore reverse mortgages as a tool to provide liquidity and maintain financial stability during market downturns.


Financial planning for retirement in India is a multifaceted challenge that requires proactive and informed decision-making. By understanding the insights from recent studies and implementing the actionable advice provided, you can achieve financial freedom and security for yourself and your family. As a coach at the Richness Academy, I am committed to guiding you through this journey, ensuring that you lead a rich and happy life.


  • Misra, S. (2018). A Study on the Role of Financial Advisor on Pension Fund Management in India.
  • Batra, G. (2013). Study of Investment Advice to Retirement Plan Partakers in India.
  • Thundiparampil, S. J. (2019). Retirement Time Planning of Indian Expatriate in Umm Al Quwain Region.
  • Bhagat, R. B., & Unisa, S. (2006). Ageing and Dependency in India.
  • Chauhan, S., & Indapurkar, K. (2018). Understanding Retirement Confidence: With Special Reference to India.
  • Mohanty, S. K., Sahoo, U., & Rashmi, R. (2022). Old-age Dependency and Health Expenditure: Evidence from India.
  • Mattoo, K. A., & Thoker, A. (2011). Life Satisfaction among Retired and Working Women in Rural Areas of Jammu.
  • Hiremath, K., Afza, N., & Kumar, D. (2022). Gender Bias in Financial Planning for Retirement.
  • Gupta, R., & Pradhan, S. (2017). Evaluating Financial Planning Advertisements for Retirement in India: A Content Analysis.
  • Ashok, R., & Dhingra, M. (2020). Reverse Mortgage as a Financial Planning Tool for Retirees.

The author of this fictional story, Taresh Bhatia, is a Certified Financial Planner and advocate for female empowerment. For more information and personalized financial guidance, please contact taresh@tareshbhatia.com

He has authored an Amazon best seller-“The Richness Principles”. He is the Coach and founder of The Richness Academy, an online coaching courses forum. This fictional story serves educational purposes only and does not constitute financial advice. Consultation with a qualified financial professional is recommended before making any investment decisions. An educational purpose fictional story only and not any advice whatsoever.

©️2024: All Rights Reserved. Taresh Bhatia.

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