1 in 2 Indians are walking into retirement unprepared. Don’t be the next.

A study by Max Life Insurance revealed that while India’s Retirement Preparedness Index improved by 3 ranks from the previous year, nearly half of Indians haven’t started saving for retirement.  

61% fear they’ll run out of savings within 10 years of retiring, and 90% of Indians aged 50+ regret not starting earlier.

Financial expert Shiv Bidani highlights that urban Indians are too occupied with daily routines to think about retirement.  

Traditional investments like gold and land still dominate, while the digital shift has made equities more accessible.  

Yet, planning often begins too late, costing years of potential growth through compounding.

Source: https://www.morningstar.in/posts/76603/much-works-required-to-improve-retirement-in-india.aspx

Why are Indians still unprepared?

Financial expert Shiv Bidani notes that urban Indians are too busy in their daily routines to think about retirement.

Retirement planning in India often remains informal - shaped by cultural habits and peer influence.

Traditional choices like gold, land, and jewelry still dominate.

Digital access has spurred growing interest in equities and mutual funds.

High-net-worth individuals diversify into AIFs, property, and global investments.

But despite this growing awareness, planning for retirement often starts too late.

Understanding Retirement Planning in India

Most formal retirement income comes from:

Provident Fund (PF) – employer and employee contributions.

Gratuity – lump sum linked to years of service.

National Pension Scheme (NPS) – voluntary, long-term contribution plan.

However, these benefits primarily cover government and organized sector employees.

Those in the private and unorganized sectors - nearly half of India’s workforce  often have no guaranteed post-retirement income or security.

The Road Ahead

India is one of the youngest nations today — but in the next 25 years, it will face a massive aging population.

Without adequate retirement systems, this could become a major socio-economic challenge.

Reforms must focus on:

Making pension contributions mandatory for all workers.

Expanding coverage to unorganized sectors.

Encouraging early, goal-based financial literacy.

Promoting unbiased retirement education, not just product-linked advice.

Because as Bidani warns:

“Unless protection by way of post-retirement sustenance income is assured, there could be anarchy.”

The takeaway:

 Retirement planning isn’t a distant concern - it’s a present-day responsibility.

 The earlier you start, the stronger your future becomes.

Question for you:

 How early did you start planning for your retirement  or when do you plan to begin?