India’s perception of retirement is shifting from a distant concern to an early-life priority. According to the fifth edition of the India Retirement Index Study (IRIS 5.0), India’s retirement readiness score has climbed from 44 to 48 over four years, reflecting improved awareness across financial, health, and emotional well-being. Conducted by Axis Max Life in partnership with Kantar, the study shows that half of urban Indians now believe retirement planning should begin as soon as they start earning. The trend suggests a generational change in mindset, where early planning, wellness, and holistic financial habits are emerging as the foundation for secure futures.
Breakdown
The IRIS 5.0 study highlights steady improvement in India’s preparedness across key pillars - finance, health, and emotion. Health readiness recorded the sharpest increase, rising to 46 from 41 in 2022, driven by stronger fitness habits, preventive check-ups, and higher health insurance adoption. Financial awareness is rising too, though gaps remain. While 43 percent of respondents believe planning should start before age 35, only 37 percent have achieved even a quarter of their target retirement corpus. Nearly two-thirds of respondents still fear their savings would last less than a decade post-retirement, indicating that awareness has outpaced actual preparation.
Women, gig workers, and return migrants emerged as standout segments. Women scored higher than men in overall preparedness, reflecting stronger health optimism and proactive planning, though they continue to invest less in risk-based financial products. Gig workers showed increasing financial independence but limited health engagement, while return migrants displayed financial confidence tempered by health neglect. Collectively, these groups underline how India’s evolving workforce is redefining retirement goals beyond traditional employment models.
Regionally, the East leads in preparedness, followed by strong recoveries in the North and West driven by post-pandemic health and financial rebounds. The South shows a balanced profile, combining emotional resilience with steady financial sentiment. Across urban India, metros now lead the way with an IRIS score of 50, supported by disciplined financial planning and regular health monitoring.
Despite rising awareness, a significant preparedness gap persists. Most respondents underestimate the retirement corpus required for long-term security, with ₹1 crore still perceived as sufficient by a majority. Awareness of financial products has increased to 11.6 from 8.7 in 2022, but adoption remains uneven. NPS awareness rose to 66 percent, though participation remains low at around 17 percent due to perceived complexity. Meanwhile, EPF continues to dominate workplace benefits, with employees prioritizing add-ons such as regular health check-ups and medical coverage.
Why This Matters
India’s retirement landscape is entering a crucial transition. Early planning, once a niche behavior, is becoming mainstream as young earners adopt a more future-focused approach. However, while health and emotional preparedness are rising, financial sufficiency remains limited. This underscores the need for financial literacy, advisory support, and innovative savings solutions that can bridge the gap between awareness and action. With longer life expectancy and shifting work models, building a robust retirement ecosystem is essential to sustaining long-term financial and emotional security.
The Big Picture
The rise in India’s retirement readiness aligns with global trends of early financial planning and wellness-driven lifestyles. As more Indians Prioritize health, preventive care, and investment literacy, the foundations for long-term security are strengthening. The challenge now lies in translating awareness into measurable action. Employers, policymakers, and financial institutions have a shared opportunity to promote structured retirement planning and inclusive financial products tailored to diverse segments such as gig workers and women.
This evolution is also part of a broader social shift. Retirement is no longer seen as an end stage but as a new phase requiring balance, autonomy, and purpose. India’s growing emphasis on health, savings, and emotional resilience marks a move toward more holistic definitions of financial well-being.
The Crunch
India’s rising IRIS score signals more than progress, it represents a mindset change. The next leap forward depends on closing the preparedness gap through education, digital advisory tools, and inclusive financial planning. Retirement is no longer a goal to plan for later; it is a life skill to begin mastering now. Those who start early and balance health with wealth will define the blueprint for India’s new retirement-ready generation.