India’s growing life expectancy is exposing a widening gap in retirement preparedness, with a majority of urban Indians at risk of outliving their savings, according to the fifth edition of the India Retirement Index Study (IRIS 5.0) conducted by Axis Max Life Insurance in partnership with Kantar. The study found that India’s retirement readiness score stands at just 48 out of 100, highlighting inadequate long-term financial planning despite increasing awareness. While 86 per cent of “Empty Nesters” know the retirement corpus they require, only 33 per cent believe their savings will last beyond 10 years after retirement. Similarly, only 38 per cent of the “Sandwich Generation”—those supporting both parents and children—expect their retirement savings to sustain them for more than a decade.
The report also revealed that 77 per cent of urban Indians believe a retirement corpus of ₹1 crore or less is sufficient, despite rising inflation and healthcare costs that could significantly erode its value over time. Traditional investment options such as fixed deposits continue to dominate retirement planning, although 44 per cent of urban Indians are now investing in mutual funds and SIPs. The study also noted growing interest in the National Pension System and annuity-based retirement products to provide sustainable post-retirement income.
According to the report, 24 per cent of urban Indians have made no progress toward retirement savings, underscoring the need for early financial planning. It stressed that beginning retirement investments early can significantly reduce monthly savings requirements through the power of compounding, enabling greater financial security and helping address the challenges posed by increasing longevity.
