₹1 crore seen as enough to retire, but survey shows a growing readiness gap

Despite better health awareness, financial readiness for retirement remains weak, shows IRIS 5.0 survey

A majority of Indians continue to underestimate how much they will need for a comfortable retirement, with 7 in 10 respondents believing that Rs 1 crore would be enough to live well after they stop working, according to the India Retirement Index Study (IRIS) 5.0 by Axis Max Life Insurance.

Growing focus on health, but not enough on savings

The study shows that while awareness around financial preparedness remains modest, health consciousness has improved significantly. The overall IRIS score, which measures India’s retirement readiness, rose to 48 in 2025 from 44 in 2022, reflecting better fitness habits, more frequent health check-ups, and wider insurance coverage.

 

However, the index dipped slightly from last year’s 49, indicating that financial confidence has plateaued.

 

“While financial confidence remains stable, awareness about the required retirement corpus continues to be low,” the report noted.

 

When to start retirement planning

Half of the respondents believe that retirement planning should begin before the age of 35, ideally as soon as one starts earning. Despite this, a large share remains uncertain about how to begin, underscoring the need for greater financial literacy and professional advice.

 

The survey, which covered 2,242 respondents aged 25-65 years across 28 cities, found that:

 

50 per cent were salaried individuals

 

The remaining were self-employed, earning Rs 5 lakh or more annually

 

‘Next frontier’ for retirement readiness

 

Sumit Madan, managing director and chief executive officer of Axis Max Life Insurance, said the findings signal “a clear shift towards smarter and more holistic retirement planning.” As health preparedness improves, the next step, he said, is “building an adequate retirement corpus and emotional resilience.”

 

The report also shed light on emerging segments such as gig workers, women, and returning migrants, highlighting their unique challenges in saving for old age. For the first time, returning migrants were studied as a distinct group, offering insights into how they manage finances while prioritising health and well-being after relocation.

 

Madan added that the next phase of growth in retirement planning will depend on inclusive, advisory-led solutions that cater to India’s increasingly diverse workforce.

 

(With inputs from PTI)