Nearly three in four people in north India want to retire before the traditional retirement age, but a lack of adequate savings and declining confidence in the longevity of retirement funds are raising concerns about their financial readiness, according to a new study by Axis Max Life Insurance.
North India recorded a retirement preparedness score of 47, down from 48 in the previous edition. The score was also below the national average of 49, placing the region at the bottom among India's four zones.
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The study found that 74% of respondents in North India aspired to retire early, assuming their financial needs were taken care of. Of these, 49% wanted to achieve financial independence and retire before the age of 50.
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Despite these ambitions, respondents had accumulated just 26% of their target retirement corpus on average, marginally lower than 27% recorded in the previous survey. Only 26% expected their retirement savings to last for at least 10 years, compared with 38% in the fifth edition of the study.
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The findings point to a gap between retirement expectations and financial readiness, even as participation in retirement investing improves. The proportion of North Indians who had started investing for retirement rose to 68% from 64% in the previous edition, although it remained below the national average of 70%.
Awareness of retirement planning also remains a concern. Only 39% of respondents believed people should start planning for retirement as soon as they begin earning, against the national average of 50%. Respondents in the region put the ideal age to start thinking about retirement savings at around 33, compared with 31 nationally.
The study also found that 32% of North Indians believed they would need a retirement corpus exceeding Rs 1 crore, up from 21% in the previous edition. The increase highlights the growing financial expectations associated with maintaining a comfortable lifestyle after leaving work.
Concerns extend beyond money. North India's health preparedness score fell to 44 from 46, the lowest among all zones. Only 70% expected to remain fit and healthy during retirement, compared with 75% nationally.
Emotional wellbeing emerged as another major challenge, with 81% worried about loneliness during retirement, against the national average of 74%. Confidence in receiving support from family and friends also declined, falling to 84% from 88%.
Anurag Gupta, Chief Business Officer and Head of Retirement at Axis Max Life, said the findings highlighted the need for people to start investing early and consistently while paying attention to their physical health and social support systems. The report suggests that achieving early retirement will require more than aspiration, with sustained financial planning and broader preparation for life after work remaining essential.
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