Influencer Economy Has Real Sway —And A Real Risk To Your Retirement Planning

As Indians worry more about their financial futures, a growing number are turning not to advisors or institutions — but to social media. The PGIM India Retirement Readiness Survey 2025 reveals how deeply the influencer economy has entered personal finance, and why that shift is raising red flags.

According to the survey, 23% of respondents follow finance influencers for money-related guidance. For a generation raised on reels and threads, financial advice is increasingly consumed in bite-sized, algorithm-friendly formats. The problem is what happens next. Nearly 32% of those who follow influencers admit to acting on financial advice without verifying it.

This behaviour gap matters, because market participation without understanding carries real consequences. The report cites SEBI data showing that more than 90% of retail traders in derivatives lost money between FY22 and FY25 — a stark reminder that complexity and confidence often rise faster than competence.

What makes the influencer pull especially powerful is timing. Retirement has emerged as India’s top stated financial goal, but readiness remains low.

Many households are stretched by higher expenses, rising EMIs, and reduced savings, creating fertile ground for quick-fix narratives — 'high-return' strategies, aggressive trading, or untested products presented as shortcuts to wealth.

The survey suggests that influencer-led advice often fills a vacuum left by limited access to formal guidance. With only a minority of Indians having structured retirement plans or professional financial advice, social media becomes the default classroom. But unlike regulated advisors, influencers are rarely bound by fiduciary responsibility, risk profiling, or long-term suitability.

Behavioural patterns worsen the outcome. Investors tend to chase recent winners, overestimate their risk tolerance, and confuse short-term success with skill — tendencies that are amplified by viral content and selective success stories. The result is often reactive investing rather than disciplined planning, especially during volatile market phases.

Respondents who had access to structured advice — through employers or formal channels — reported greater clarity and consistency in financial decisions. Meanwhile, those relying primarily on digital personalities were more likely to describe their approach as “opportunistic” or “experimental”.

The findings do not argue that influencers should be ignored altogether. Many play a role in spreading awareness and breaking down complex topics. But the survey highlights a critical distinction between education and execution. When influencers move from explaining concepts to prescribing actions — especially without context — the risks multiply.

As India’s retail participation deepens, the challenge is no longer just financial inclusion. It is financial discernment. Without stronger guardrails, better access to advice, and clearer accountability, the influencer economy may end up widening the very retirement gap it claims to solve.