- Retirement has become India's top financial priority, but preparedness is declining
- Only 37% of Indians have a retirement plan, showing a sharp drop from previous years
- About 42% expect family support in retirement, despite changing family structures
For the first time, retirement has emerged as India's number one financial priority. Yet the country is entering this phase with a dangerous mismatch between intent and preparation. Indians may be thinking more about life after work, but they are far less ready for it.
That is the central point from the PGIM India Retirement Readiness Survey 2025, which shows a sharp deterioration in retirement preparedness even as concern about the future intensifies.
Readiness Collapses, Even As Concern Rises
Only 37% of Indians now say they have a retirement plan, a dramatic fall from earlier years. Even fewer feel confident about sustaining their lifestyle after they stop working. The gap is most visible among working-age professionals who acknowledge retirement as a priority — but have taken little concrete action.
Dependence on family remains high. Around 42% of respondents expect to rely on spouses, children, or extended family in retirement, exposing a fragile assumption in an era of nuclear households, job mobility, and rising longevity. The survey suggests that while awareness has grown, execution has stalled.
Alternate Income: The Decisive Fault Line
One statistic explains the readiness divide more clearly than any other.
Just 25% of Indians have an alternate source of income, and only 14% have both a retirement plan and an alternate income stream — down sharply from 26% earlier.
Those with side income — rentals, business income, or financial assets—report far greater confidence about retirement. Everyone else is relying almost entirely on future savings that may never materialise at the required scale.
Anxiety Spills Into Everyday Life
Financial anxiety is now deeply embedded in daily decision-making. The share of Indians reporting high money-related stress has jumped to 46% from 32%, and this is no longer a private worry.
About 67% say financial stress is hurting their productivity at work, pointing to a spillover effect from household balance sheets into the economy. People worried about today's bills are less likely to plan for tomorrow — even if they know they should.
Survival Budgets Clouding The Future
Household finances have tilted decisively toward short-term survival. Monthly expenses now account for 65% of income, up from 59%, leaving less room for long-term saving. EMIs and short-term borrowing have risen, while investments and discretionary savings have taken a back seat.
This shift explains why retirement planning is slipping despite growing awareness. People are not choosing to ignore the future — they are being forced to prioritise the present.
India's retirement problem is no longer about ignorance or apathy, but about capacity. The report notes that rising costs, debt burdens, and financial stress are eating into the very surplus needed to plan ahead.
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