Retirement Emerges as India's Top Financial Priority Despite Declining Preparedness
The PGIM India Retirement Readiness Survey 2025 shows retirement has become India's top financial priority, yet preparedness has declined sharply with only 37% maintaining retirement plans. Financial stress has jumped to 46% from 32%, while monthly expenses now consume 65% of income compared to 59% previously. Only 14% have both retirement plans and alternate income, down from 26%, with 42% expecting family support during retirement.
*this image is generated using AI for illustrative purposes only.
India faces a retirement preparedness crisis despite growing awareness, according to the PGIM India Retirement Readiness Survey 2025. For the first time, retirement has emerged as the country's top financial priority, yet this heightened concern coincides with a sharp decline in actual preparation. The survey reveals a troubling disconnect between intent and action, with Indians increasingly worried about their financial future but less equipped to address it.
Retirement Planning Shows Dramatic Decline
The survey data reveals alarming trends in retirement preparedness across the country. Current statistics demonstrate the severity of the planning gap:
| Planning Metric: | Current Status |
|---|---|
| Indians with retirement plan: | 37% |
| Those with alternate income: | 25% |
| Both retirement plan and alternate income: | 14% (down from 26%) |
| Relying on family support: | 42% |
The decline in comprehensive retirement planning is particularly striking, with only 14% of respondents maintaining both a retirement plan and alternate income sources, compared to 26% in earlier surveys. This represents a significant deterioration in financial preparedness despite increased awareness of retirement needs.
Financial Stress Reaches Critical Levels
Financial anxiety has become deeply embedded in daily life, creating a cascade effect that undermines long-term planning. The survey documents substantial increases in money-related stress across the population:
| Stress Indicator: | Current Level | Previous Level |
|---|---|---|
| High financial stress: | 46% | 32% |
| Work productivity impact: | 67% | Not specified |
| Monthly expenses vs income: | 65% | 59% |
Approximately 67% of respondents report that financial stress negatively affects their workplace productivity, indicating that household financial pressures are spilling into the broader economy. This creates a vicious cycle where current financial worries prevent adequate future planning.
Income Sources Determine Retirement Confidence
The survey identifies alternate income streams as the decisive factor separating confident retirees from anxious ones. Those with diversified income sources—including rental properties, business income, or financial assets—demonstrate significantly higher confidence about retirement sustainability. However, the vast majority of Indians lack such diversification, relying almost entirely on future savings that may prove insufficient.
The dependence on family support remains problematic, with 42% expecting to rely on spouses, children, or extended family during retirement. This assumption appears increasingly fragile given trends toward nuclear households, job mobility, and rising longevity.
Household Budgets Prioritize Immediate Needs
The survey reveals a fundamental shift in household financial allocation toward short-term survival over long-term planning. Monthly expenses now consume 65% of income compared to 59% previously, leaving significantly less room for retirement savings and investments.
This budget compression reflects broader economic pressures including:
- Rising EMI obligations and short-term borrowing
- Increased cost of living across essential categories
- Reduced discretionary income available for investments
- Growing debt burdens limiting saving capacity
The survey concludes that India's retirement challenge has evolved beyond awareness or motivation issues to become fundamentally about financial capacity. Rising costs, debt obligations, and immediate financial pressures are consuming the surplus income traditionally allocated to long-term planning, creating a structural barrier to retirement preparedness despite growing recognition of its importance.
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