Retire Smart, Not Sorry

The PGIM India Mutual Fund Retirement Research Report has thrown up an interesting insight. Retirement planning is the predominant financial priority for Indian families. Looking at the past retirement surveys, it is noted that retirement planning was ranked eighth in terms of priority in 2020, and now claims the top spot in 2025.

Ironically, readiness for retirement has declined sharply. In fact, this gap between aspiration and action is the defining insight of this report. Only 37 per cent have a retirement plan today, compared to 67 per cent in 2023. A large number (63 per cent) of respondents do not have a retirement plan in place.

This article is targeted at all those who do not have a retirement plan in place.

Do NOT Play The Victim

The amount of control you believe you have over your situation will strongly influence your retirement planning behaviour. As per the survey, only 14 per cent believe they fully control their fate, while 32 per cent feel they mostly control life. These individuals are more likely to plan because the future feels actionable and under their control.

The rest attribute control largely to external forces. A victim mentality will prevent you from taking ownership of the situation. It unconsciously creates a psychological distance in your mind tricking you into believing that you cannot influence the outcome. Hence, planning seems futile.

Don’t just assume things will work out, or things won’t work out. Take professional help and get started. Proactive financial behaviour works in your favour.

Do NOT Postpone Planning

The psychological distance narrows with age, but this can be frightening if it is too late for optimal compounding. For those under 30, the focus is on travel, gadgets and marriage. Retirement planning is something they will do when they get this out of the way, or something they will start around 35.

Those between 30 and 40 years of age would recognise the need to plan but have a lot of family commitments and needs. After 40, it begins to feel urgent, especially when there is inadequacy of savings.

Whatever your age, start saving towards it, however small the amount. Just do not ignore the eventuality of retirement.

Do NOT Be Vague

A dominant reason why we procrastinate on retirement planning is because of the psychological distance from where we are, to where we will eventually land. For most, retirement feels like a far-off land—abstract, emotionally distant, and hard to visualise.

When the future feels vague, our brain struggles to form an emotional connection with it—making motivation to plan almost non-existent. Hence, procrastination takes over.

People are wired to act on goals that are vivid, emotionally rewarding, and easy to visualise, such as buying a home or a car or even getting married. My friend’s daughter who has just turned 18 has her entire wedding envisaged. However, her parents, who are both 50, have not even given a thought to their retirement.

Start giving thought to retirement. Where do you want to stay eventually. What sort of home do you require? How do you want to live? How much would you need to retire?

Abstract goals with distant, unclear outcomes—such as retirement—trigger procrastination because they fail to activate the same emotional circuits as short-term goals. The solution lies in bridging this psychological gap: making these long-term goals concrete, relatable, and emotionally engaging. Greater clarity is the key to turning intention into action.

Do NOT Be Inflexible

Retirement is a loose definition. It means different things to different people. There is no right or wrong. There is no one-size-fits-all. But how you choose to interpret retirement is what will form the basis of your retirement plan. Have clarity on your plan so you can build on it.

As an individual, you need to continuously monitor the way you view your own retirement. Our aspirations change, hence our vision of retirement will also shift. This will cause to revisit and update your retirement investment strategy if you are nearing it.

The retirement survey revealed that the main causes of financial anxiety were inflation (63 per cent), cost of living (62 per cent), slowdown (50 per cent), health (49 per cent), and lack of family support (43 per cent). All these issues need to be considered as your family situation and financials change.

Also look at sources of income: rental income, annuity, dividends, consultancy, freelance work, spouse earning, allowance from children, systematic withdrawal plans (SWP) etc. The survey revealed that only 14 per cent have both, a retirement plan and an alternate income. A sharp drop from 26 per cent in 2023, while 51 per cent have neither (up from 23 per cent in 2023).

Do NOT Expect A Short Life

Don’t be conservative when estimating your retirement period. We can’t know how long we’ll live. The expected length of your retirement should definitely be longer than your life expectancy, since you want a cushion should you live longer than average. The average life expectancy in India is approximate 70-73 years of age.

If you are younger, you need to pad up on life expectancy number because by the time you retire, life expectancies will be higher (something actuaries call expected improvement in mortality rates).

Also, do remember that life expectancies are an average. If you have not suffered from malnutrition, have access to good healthcare, are able to afford a nutritious diet, and are in excellent health, chances are you will live longer. Look at your family history. How long did your parents live? Be practical.

Do NOT Go For It Alone

Even if you are on track to building a retirement kitty, talk to a professional to ensure that you are investing sufficiently, while getting adequate insurance coverage and fulfilling the emergency fund requirement.

Professional help is the better approach, but even if you do it by yourself, remember that the best self-made plans also benefit from a second opinion. Treat expert advice as a smart safeguard—a way to stress-test your strategies, uncover hidden risks or blind spots, and ensure your confidence translates into true preparedness.

Family and friends may provide guidance out of goodwill, but it may not always be apt. In the journey to retirement, confidence is powerful, but resilience comes from being prepared for the unexpected.

The survey was conducted in-person among 3,088 Indian adults; 19 cities; aged between 26 and 60 years; 70 per cent male and 30 per cent female.

By Larissa Fernand, Behavioural Finance Expert