HNIs aim for early retirement but low savings, planning hold them back

A Marcellus and Dun & Bradstreet survey shows that Indian HNIs want early retirement and education abroad for children, but poor saving habits and planning hinder goals

High-networth individuals (HNIs) in India aspire for early retirement, entrepreneurship, and foreign education for children, but lower savings, lack of personalised planning, and financial discipline pose challenges to their plans, according to a survey by Marcellus Investment Managers and Dun & Bradstreet.

 

The survey, which covered over 465 HNI households across 28 cities, shows that 43 per cent of HNIs save less than 20 per cent of their post-tax income.

 

The saving rate is higher for the top income brackets within HNIs. Sixty-three per cent of HNI households with over ₹10 crore annual income save over 30 per cent of their earnings.

 

However, their allocation is skewed towards real estate. 

 

"Only 17 per cent allocate more than 30 per cent to equities. Forty-four per cent of these households say they are 'very comfortable' with equity investing, but still 65 per cent of them exclusively allocate 10 per cent to 20 per cent to gold/silver and 48 per cent of them allocate more than 30 per cent to real estate," the report said.

 

According to the study, most HNIs believe that professional financial planning is key to realising their goals.

 

"Eighty-two per cent believe professional financial planning is key to achieving long-term financial goals. Fifty-one per cent HNIs seek more guidance on diversification. Thirty-two per cent seek goal planning, and 38 per cent seek personalised asset allocation tailored to their goals and risk," it added.