The newspaper MINT (24 April 2019) published a news item on a the “Report The New Social Contract: A Blueprint for Retirement in the 21st Century”, published by the Aegon Centre for Longevity and Retirement based in Netherlands. There is very good news for life insurance marketing in India in that Report.
India is No. 1 in the world
The Report is based on a survey and study of retirement preparedness across 15 countries in Australia, Europe, Americas, and Asia. India was one of the countries studied. In comparison to all the other 14 countries in the study, India was ranked as No. 1 in terms of her people being ready for retirement. What this means is that the level of awareness of Indians of the need to plan for retirement was highest in India, in comparison with the 14 other countries studied. China and Brazil were second and third in the study.
The Market for Retirement Planning
Retirement planning opens up a huge market for those selling life insurance. The market is ready to buy. Are we ready to sell? There is strong sentiment amongst Indians that planning for retirement is the need of the hour. This is fueled largely by the breaking up of the joint family and the growth of the nuclear families. This is also fueled by the fact that India, unlike countries like France or Denmark do not have a social security system in place for old age. There are no government schemes. Children after they grow up work and live in a different place. Those are now in their 40s or 50s, by and large do not want to be financially dependent on their children. These and many other reasons are at the core of the huge and growing market for retirement planning. Whether the person is in private or government service, or whether the person is operating a business, big or small, or whether the person is a farmer or a rural worker.
Why Does the Retirement Planning Market Exist?
For all categories of persons the issue is the same. The farmer’s son does not want to work in the farm. The rural worker’s son wants to migrate to a town. The barber’s son wants to take up another profession. The private sector executive, who has given his son a good professional education, finds out that his son wants to work abroad. The government officer knows that his government pension will be insufficient in old age. In all these cases, and all other cases, the Aegon Survey found out that people prefer to plan for retirement rather than depend on children or depend on a limited pension plan from their organisation. The Survey found that more than 55 % of the working category of Indians are saving regularly for their retirement. In addition 26 % were saving occasionally for retirement. Nearly three-fourth of Indians surveyed were saving for their retirement. How many of them are your customers? Sell for the customers needs and his or her desires. Customers’ awareness on the need for retirement planning is very high. Capture the need.
Start Canvassing Retirement Products NOW
For the financial year 2019-20, make retirement planning as your entry ticket to a customer. They will be more than willing to listen to you, because retirement planning is at the top of their agenda in financial planning.