70% Indians say retiring financially secure is 'unachievable': Report

Holidays take precedence over pensions, marking growing tension between lifestyle and long-term security goals

More than 70 per cent of Indians believe retiring financially secure is “unachievable”, said a private survey on Thursday, marking weak preparedness in a country where formal pension coverage remains limited.

 

The survey by Goalteller, a financial planning platform, highlights a widening gap between long-term financial security and short-term lifestyle priorities. It found two structural issues:

 

Lack of long-term financial discipline

Inadequate understanding of compounding and inflation-adjusted needs

 

Many households are either under-investing or delaying retirement planning, sharply increasing the savings burden they will need later.

 

Lifestyle goals take priority

 

Even as retirement remains underfunded, the survey found that vacations are the most popular short- to medium-term financial goal.

 

 

People are more willing to save for “tangible, near-term experiences” than for distant, abstract goals like retirement.

 

Such behaviour has implications for financial product design. Goal-based savings instruments linked to lifestyle aspirations, such as travel funds or automated saving tools, may see higher adoption than traditional retirement-focussed products.

 

Generational divide shapes financial choices

The survey highlights sharp differences across age cohorts:

 

Gen Z (below 28 years)

 

Only about 7.6 per cent believe retirement is achievable

 

Strong preference for short-term and aspirational goals

 

Rising interest in luxury purchases such as cars

 

High-risk appetite: nearly 75 per cent of equity investments are in direct stocks

 

This suggests early financial engagement, but with a bias towards active trading rather than structured planning.

 

Millennials

 

Around one in four see retirement as achievable — the highest among all groups

 

Show relatively better balance between present consumption and future planning

 

Lead in allocating resources towards entrepreneurship

 

This cohort appears to be the most financially aware, combining goal-setting with action.

 

Gen X

 

Maintain a middle path between long-term security and lifestyle needs

 

Display consistent participation in equity markets

 

They are in peak earning years, which enables both consumption and investment.

 

Boomers

 

Continue to prioritise retirement, but also focus heavily on family responsibilities such as children’s weddings

 

Notably high exposure to equities, challenging the assumption that older investors avoid market-linked instruments

 

This indicates growing financial sophistication even among older investors.

 

Entrepreneurship emerges as a key aspiration

 

Across age groups, interest in entrepreneurship is strong, though it manifests differently:

 

Millennials are investing the most tangible resources into business ventures

 

Gen Z shows the highest aspiration to start businesses

This signals a shift away from purely salaried income models and increased demand for financial products that support business creation — such as startup loans, micro-investing tools and incubation-linked financing.

 

What this means for financial planning

The survey underscores a broader transformation in India’s financial mindset. Key patterns include:

 

Short-termism is rising: Immediate gratification often outweighs long-term security

 

Equity participation is deepening: Even traditionally conservative groups are engaging with markets

 

Goals are becoming more personalised: From travel to entrepreneurship to luxury purchases

 

For financial institutions, this creates both risk and opportunity.

 

Strategic implications

 

Retirement solutions need redesign

 

Bite-sized, flexible plans may work better for younger investors, while advanced planning tools could serve older cohorts.

 

Align products with behaviour

 

Savings products linked to real-life goals —travel, vehicles, or events — can act as entry points to disciplined investing.

 

Support entrepreneurial ambitions

 

There is clear demand for financing solutions tailored to first-time founders and small business creators.

 

With high participation in direct stocks, especially among younger investors, there is scope for low-cost platforms combined with investor education.

 

Products around weddings, family goals, and legacy planning remain relevant, particularly for older demographics.