₹1 crore retirement benchmark loses ground as Indians reassess needs

Only 51 per cent of households earning more than Rs 15 lakh consider Rs 1 crore sufficient, as Indians report accumulating just 28 per cent of their target corpus

The Rs 1 crore retirement corpus benchmark is losing ground among urban Indians, with the proportion of people who believe Rs 1 crore or less is enough for a comfortable retirement falling to 70 per cent in 2026 from 77 per cent a year earlier, according to Axis Max Life Insurance’s Bharosa Talks India Retirement Index Study (IRIS 6.0), conducted with Kantar.

 

The shift is sharper among higher-income households. Only 51 per cent of respondents with an annual household income above Rs 15 lakh believe Rs 1 crore or less is sufficient for a comfortable retirement. Among metro residents, the proportion stands at 63 per cent.

 

 

The findings highlight a gap between retirement aspirations and preparedness. Indians have accumulated just 28 per cent of their target retirement corpus on average. While 61 per cent know the corpus they would need to maintain their current lifestyle in retirement, only 11 per cent believe their savings will last their lifetime. As many as 39 per cent expect their corpus may not last even five years.

 

“One of the clearest messages from Bharosa Talks IRIS 6.0 is that retirement remains a financial challenge for many Indians,” said Sumit Madan, managing director and chief executive officer, Axis Max Life Insurance. He said the gap between retirement aspirations and savings highlighted the importance of building adequate financial resources well before retirement.

 

Seven in 10 Indians want to retire before the traditional retirement age of 58-60 if their financial needs are taken care of. Half of those seeking early retirement want to achieve financial independence and retire early (FIRE) before 50.

 

The financial pressure is particularly visible among older respondents. “The finding that 82 per cent of Gen X+ respondents expect to continue working for a steady income highlights a critical reality: retirement is not about reaching a certain age, but about having the financial freedom to choose what comes next,” Madan said.

 

Retirement planning is starting younger. One in two Indians believes planning should begin with the first paycheque. The average age at which respondents think they should start thinking about retirement savings is 31 years, falling to 29 among Gen Z, compared with 31 for millennials and 34 for Gen X+.

 

Younger Indians are also acting on this intent. “Encouragingly, younger Indians are beginning their retirement journey much earlier, signalling a welcome shift from reactive planning to proactive preparation,” Madan said. The study found that 62 per cent of Gen Z respondents had already started investing for retirement.

 

Health is also becoming an important component of retirement preparedness. Seventy-five per cent expect to remain healthy and fit in retirement, while 52 per cent say they have health insurance. Among those who regularly engage in physical activity, 44 per cent do so daily, while 21 per cent use wearables.

 

Overall retirement preparedness improved marginally, with the IRIS score rising to 49 in 2026 from 48 in 2025 and 44 in 2022. Financial preparedness rose to 52 from 51, while health preparedness remained at 46 and emotional preparedness stood at 57, down from 58.