Representational Picture courtesy moneycontrol.com
Every body knows that ‘post-retirement life’ means one thing-retirees confront a number of challenges.
At a time when joint family system has weakened,these challenges include higher medical and other expenses,shows a study.
The study by the Willis Towers Watson,a global advisory firm,and published by PTI,highlights the challenges for individual employees in saving for retirement in the country where the people are struggling to sail through in this age of globalisation,inflationary pressures, economic volatility and perpetually changing lifestyles.
“There is no measure of the most appropriate Net Replacement Rate(NRR), however, based on global experience, a 55 per cent to 65 per cent NRR can be considered reasonable,” said the study — Understanding and Preparing for Retirement Adequacy,quoted by the PTI.
NRR is the percentage of an employee’s post-tax pre-retirement income that is paid through post-tax post-retirement annuities (including employer sponsored programmes).