Retirement planning top priority in India, actual preparedness lags
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 Monday.
New Delhi: 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 Monday.
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.
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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, CEO, 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, Senior Advisor, PGIM India Asset Management Private Limited.
