Importance of Pension Plans in Indian Nuclear Families

Importance of Pension Plans in Indian Nuclear Families

Family is the primary, basic unit of any society and as such, is reflective of the real undercurrents of broad changes in the social parameters. In India, as everywhere else, the social impact of globalization and even before that, of the economic disinvestment in the last decade of 20th century, has been profound and deeply influential. The economic growth is India, since the early decades after independence was rather lopsided and marred by “license-based” commercial activities and as such the impact on societal structure was rather not too different from what had been some time before independence. However, the revolutionary impact of global changes was so deep that the stagnant core of the social life has changed beyond recognition. The rise of nuclear family structure that had already begun due to many factors like migration for employment, increasing industrialization and changing cost of living, got a shot in the arm when Indian markets opened up and consumer-culture took a firm foothold here.  The institution of joint families, even though not completely over, is way past its prime in India today and the trend is set to increase further.

The important aspect of financial freedom has permeated in Indian society through its basic building block – family. As anywhere else, economic contribution or the financial “latency” of a member is one of the prime factors, which decides the sustenance of a family. The rapid mushrooming of old-age homes in India is another, rather negative impact of such a state of affairs. In a wide section of society, where non-earning, old and dependable members are considered to be “liabilities”, the trend is even worse. In any case, the fact that a married couple sets up a different residence due to many conditions involved is a more or less a norm today and a set- idea of financial freedom is often related to it.

Given the sharply rising cost of living graph in India, the financial aspect contributing towards growing number of nuclear families has gained more importance. Financial security is one of the most primary functions of a family- aimed at securing the interests of the members and a safe projection of the future, children’s education, careers, etc. Moreover, given the large chunk of India’s rising middle class, the number of nuclear families is expected to boom to even higher figures. The implications on the financial freedom of the retired members or senior citizens are huge. A large chunk of the workforce in India comprises of salaried persons who are not entitled to any income after retirement. Moreover, the expenditure index also out- weighs the savings options and investment plans. Budgetary planning for household expenditures –essentials as well as non-essentials is extremely critical and yet, often leaves us thinking more about how to save and plan the expenses. Given the expected cost of living in the years /decades to come, the importance of a timely, planned and structured investment for future becomes clear. HDFC Life brings HDFC Life Pension Guaranteed Plan, a comprehensive plan for ensuring that your financial freedom remains intact in the retired phase of your life. For further details, check the mentioned link:

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