57% people believe their retirement corpus will exhaust in 10 years: Max Life Insurance Survey  

Retirement fund: About 57% of people believe their retirement corpus will exhaust in 10 years, with only 27% urban Indians expecting their savings to last between 5 to 10 years, and 30% worry about exhausting funds within just 5 years, as per  India Retirement Index Study (IRIS), conducted by Max Life Insurance in partnership with KANTAR, the marketing data and analytics company. 

The 4th edition of its retirement survey reveals that 31% of urban Indians are not aware about the retirement corpus needed to sustain their current lifestyle.

However, urban India's retirement preparedness has increased from 47 points in IRIS 3.0 to 49 points in IRIS 4.0, driven by greater awareness and proactive steps in both health and financial planning. Urban Indian working women scored 50 on the retirement index, 1 point higher than men. The latest edition introduces two new segments – Double Income No Kids (DINKs) and Gig workers+. DINKs align closely with the overall Indian population, with an index score of 49 points, indicating strong health and financial preparedness. In contrast, Gig workers score only 46 points, reflecting lower readiness across the cohort.

Prashant Tripathy, CEO and Managing Director, Max Life said, "Preparing for retirement is a critical priority for the future of Indians, especially as life expectancy rises with advancements in healthcare, emphasizing the need for long-term financial planning. The IRIS 4.0 study reveals that although Urban India's retirement index has improved with positive gains in the Financial and Health indices, 1 in 3 Indians still feel underprepared. This year, we also focused on Gig workers due to the rapid growth of India's gig economy, and found that they lag with a lower retirement readiness. This signals a huge opportunity area to bring the cohort at par with the national average through focused interventions.”

The IRIS 4.0 findings highlight that a growing number of urban Indians believe that the retirement planning should start early. 44% Indians consider the right age to start planning for retirement is before 35 years, increasing from 38% in IRIS 3.0. 93% of the respondents above 50 years of age regret delaying retirement planning. Encouragingly, 63% respondents have already begun investing for retirement, leading to reduced concerns about meeting both basic and luxury needs, as well as securing their children’s futures. A notable 68% of urban Indian working women have begun investing for retirement, a 7-point increase from last year. The study also highlights regional opportunities in retirement planning across India, with the East zone leading in overall preparedness, the West zone showing financial and health progress but needing emotional focus, and the North and South zones improving in health preparedness index.

As per the survey 97% urban Indians are aware of Life Insurance as a suitable financial product, with 67% already invested in life insurance as the ideal financial product for retirement, and 37% have invested in health insurance. 

Tripathy adds, “Today, more urban Indians recognize the importance of starting retirement planning early, with a growing preference for life insurance as a savings tool—2 in 3 are investing in these products for retirement. Notably, urban Indian working women are taking the lead in investments, actively securing their financial futures. These trends highlight a positive shift towards proactive retirement planning and financial independence among urban Indians.”

Soumya Mohanty, MD and Chief Client Officer, South Asia, Insights Division, Kantar said, "India Retirement Index Study (IRIS) 4.0 delivers sharp, data-backed insights into the retirement preparedness of urban Indians across varied demographics. By focusing on key indicators—financial, physical, and emotional readiness—the study offers a clear view of the nation's retirement outlook. Our partnership with Max Life highlights our shared goal of enhancing financial security for Indians, ensuring they are well-prepared for their retirement years."