Half of urban Indians now prioritise early retirement planning: Study

India's retirement readiness improves with the IRIS Index rising to 48; health and financial awareness up but emotional well-being remains a concern, says Axis Max Life

Max Life Insurance Company Limited on Wednesday unveiled the findings of the fifth edition of its annual India Retirement Index Study (IRIS 5.0), conducted in partnership with marketing data and analytics firm Kantar. The study, primarily based on the urban population, evaluates India’s preparedness for retirement.

 

India’s retirement readiness continues to improve, with the IRIS Index score rising from 44 to 48 over four years, reflecting stronger financial, health, and emotional awareness.

 

Key challenges in retirement planning

 

The report highlights key challenges affecting retirement planning such as lack of trusted guidance, family dependence, and competing life priorities. The study found that a majority of respondents have developed significant awareness about the importance of planning for retirement before turning 35.

   

Shift towards holistic and inclusive retirement planning

 

Sumit Madan, managing director and chief executive officer, Axis Max Life, said, “IRIS 5.0 signals a clear shift towards smarter and more holistic retirement planning. Today’s consumers are showing greater health consciousness, higher product awareness, and sustained financial confidence. 

 

“As health preparedness improves, the next frontier is building adequate retirement corpus and emotional resilience. The study also highlights a growing segment of individuals uncertain about how to begin their planning, reinforcing the need for trusted advisory support. Diverse segments such as gig workers, women, and return migrants require tailored and inclusive solutions.

 

“The findings underline how the next phase of growth for the industry will hinge on delivering more innovative, advisory-led, and inclusive retirement solutions.”

 

Health and financial awareness on the rise

 

Retirement preparedness is improving across India, as reflected in the latest IRIS 5.0 report, with the national score rising to 48 — up four points from IRIS 2.0.

 

Health readiness has improved to 46 from 41 in 2022, supported by greater physical activity, preventive check-ups, and a rise in health insurance ownership, now at 50 per cent. However, emotional well-being remains an area of concern, with 71 per cent of respondents citing loneliness in certain cohorts and 72 per cent expressing worry about dependence on family.

 

Women display higher preparedness but greater emotional stress

 

Women show a marginal edge in retirement readiness, scoring 49 compared to 48 for men. A larger proportion of women (82 per cent) expect to stay physically fit during retirement versus 78 per cent of men.

 

However, women remain eight per cent less likely to invest in risk-based assets and report higher loneliness (74 per cent), highlighting the need for both financial and emotional empowerment.

 

Metros lead preparedness index; regional patterns vary

 

Metros lead the preparedness index with a score of 50, driven by regular fitness habits and preventive check-ups (60 per cent). Tier I cities follow closely, with a 13 per cent rise in physical activity and a 21 per cent increase in risk-based investments.

 

Regionally:

 

• East India leads overall preparedness.
• North India shows the strongest post-COVID health recovery.
• West India reports high financial momentum through stock and real estate investments.
• South India reflects a balanced wellness profile.
• Cohort insights: gig workers, return migrants, and women

 

Among specific cohorts, gig workers (score 47) show growing financial independence but limited health engagement, while return migrants (score 48) remain financially confident yet health-neglectful. Women (score 49) demonstrate proactive financial and health planning.

 

Financial awareness grows but corpus building remains low

 

Awareness of financial products has improved to 11.6 from 8.7 in 2022, but only 37 per cent have achieved at least 25 per cent of their retirement corpus.

 

While NPS awareness has grown to 66 per cent, ownership remains low at 17 per cent. Health focus continues to strengthen, with 81 per cent engaging in regular physical activity and insurance ownership up seven points to 50 per cent.