The Future of Retirement
The Future of Retirement 6
Releases HSBC Study 'Future of Retirement: The Power of Planning'
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- The 2011 report, The power of planning, is the sixth in the series and the most action oriented report to date, based on interviews with more than 17,000 people in 17 countries.
- Globally, one in five people do not know what their main source of income will be in retirement, 41% felt that they were under-prepared for retirement to some extent, while 64% admitted to being concerned that they would not be able to cope financially in retirement.
- 51% respondents in India are worried about being able to cope financially in old age and one in ten people expect to continue working in later life to provide income for themselves
- Individuals must wake up to the fact that they need to take responsibility for their own retirement as the old providers, particularly the state and the employer will no longer suffice - those actively engaged in understanding the issues around retirement and preparing for it properly face retirement with greater wealth and confidence for the future.
As stipulated by the Insurance and Regulatory Development Authority (IRDA), in its circular bearing no. IRDA/F&I/CIR/INV/173/08/2011dated July 29, 2011 the formula for computation of the Net Asset Value Per Unit (NAV) for Linked funds stands modified.
Old formula as prescribed by IRDA and as contained in the policy document:
- Appropriation price computed as market value of investment held by the Unit Linked Fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of Fund Management Charges less the value of any current liabilities less provisions, if any, is applied when the Unit Linked Fund is a net buyer of assets.
- Expropriation price computed as market value of investment held by the Unit Linked Fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of Fund Management Charges less the value of any current liabilities less provisions, if any, is applied when the Unit Linked Fund is a net seller of assets
Modified formula as stipulated by IRDA effective from August 18, 2011:
- Market value of the investment held by the fund plus value of current assets less value of current liabilities and provisions, if any and divided by the number of units existing on the valuation date (before creation/redemption of units).
The policy document shall accordingly stand modified.