Even as most Indians are busy working hard during their adult years, they are thinking about their retirement, not only to enjoy a good time off work, but also to be financially prepared so that they don`t face any difficulty in the future.
Retirement planning has been ranked as Indians’ first financial priority even as actual preparedness or a plan in place collapsed to 37 per cent from 67 per cent in 2023, a report said on October 29.
The report from PGIM India Mutual Fund said that retirement took the first spot, climbing from eighth place, as lifestyle and entrepreneurial goals overshadow family-centric concerns.
The shift reflects a broader change in financial planning from fear‑driven security to aspiration‑driven ambition, blending protection with progress and lifestyle freedom, it said.
Family security and health emergencies, once dominant, have slipped down the list. In their place, aspirations such as lifestyle upgrades, starting a business, and personal fulfilment are rising rapidly.
The fund house found that mutual funds emerged as the dominant retirement vehicle, while preference for choosing a product from a distributor rose to 62 per cent from 44 per cent in 2023.
Mutual fund adoption for retirement climbed to 35 per cent from 24 per cent, it said, noting growing traction for NPS (National Pension System), PPF (Public Provident Fund), and retirement‑focused funds.
Abhishek Tiwari, who is the CEO at PGIM India Asset Management Private Limited, said that the decline in readiness “is not a setback but a sign of positive evolution.”
“Indians are beginning to distinguish between safeguarding against risks and actively building a future for themselves. With a rising sense of surplus and families moving beyond simply providing for children to planning for their own retirement, it reflects a maturing mindset focused on self-driven security and dignity,” said Tiwari.
Alternate income adoption among respondents declined to 25 per cent even as intent to pursue it jumped to 44 per cent.
“Rising affluence and impact of pandemic have propelled self‑oriented goals like retirement planning, lifestyle upgrades, and entrepreneurship to the forefront, running parallel to traditional family-centric concerns,” said Ajit Menon, who is the senior advisor at PGIM India Asset Management Private Limited.
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