Loneliness Shadows Retirement: Most Empty Nesters, Sandwich Generation Worried

Retirement planning in India is no longer just a financial exercise. It is increasingly an emotional and social one. The latest cohort findings from Axis Max Life Insurance’s fifth India Retirement Index Study (IRIS), conducted with Kantar, spotlight two groups at the heart of this transition: the Sandwich Generation and Empty Nesters. Together, they reflect the pressures of a country moving from joint families to more nuclear, urban lifestyles, where retirement security is becoming more individual than ever before.

At a national India Retirement Index score of 48, the study reveals a striking lack of confidence about long-term financial security. Only 33 per cent of Empty Nesters and 38 per cent of those in the Sandwich Generation believe their savings will last more than 10 years after retirement. This gap between preparation and confidence defines the retirement mindset of both cohorts, even though their life stages differ sharply.

As defined in the report, the Sandwich Generation refers to the middle-aged demographic who are sandwiched between the obligation of caring for their aging parent(s) while supporting their own dependent children simultaneously.

Empty Nesters, on the other hand, are those parents whose children have grown up and moved out of the family home to pursue careers or education, leaving the parents behind to live on their own.

For Empty Nesters, planning is shaped by hindsight. Many in this group are adopting a “better late than never” approach. As many as 71 per cent have already started investing for retirement, slightly above the national average of 67 per cent. Financial awareness is also high, with 86 per cent saying that they know how much corpus they would need to sustain their post-retirement lifestyle.

Their investment behaviour reflects a gradual shift. While 61 per cent still relies on fixed and recurring deposits, 44 per cent now invest in mutual funds or SIPs, significantly higher than the national average of 32 per cent. At the same time, only 18 per cent believe retirement planning should wait until all other responsibilities are completed, indicating a clear planning mindset.

Yet financial effort does not translate into peace of mind. Concerns about aging are visible in their health outlook. According to the report, only 72 per cent believe they will remain fit in retirement, compared with the national average of 79 per cent. Although 55 per cent undergo regular or occasional health check-ups and 52 per cent have health insurance, daily exercise levels are slightly lower than the national benchmark. Their health management style is largely treatment-led, with 32 per cent closely following medical advice and medication routines.

Emotional anxieties are even more pronounced. Three in four Empty Nesters (75 per cent) fear loneliness in retirement, higher than the national average of 71 per cent. Concerns about becoming financially dependent on children (73 per cent) and the impact of environmental changes (80 per cent) on a peaceful retired life remain high. Despite this, 55 per cent still feel totally secure about getting family support, underscoring a tension between reliance and independence.

The Sandwich Generation faces a different challenge. Typically supporting both aging parents and dependent children, this group is caught in a high-stakes balancing act. With a Retirement Index score of 49, they show moderate preparedness but significant emotional strain.

About 67 per cent have begun saving for retirement, often driven by family recommendations (50 per cent) and an increasing awareness of life’s unpredictability (38 per cent). Life insurance ownership stands at 78 per cent, slightly above the national level. However, among those yet to start investing, reliance on traditional safety nets remains strong– 40 per cent expect their children to care for them, while 37 per cent count on inherited wealth.

Health attitudes here are more optimistic: as per the report, 79 per cent believe they will remain fit in retirement. Around 45 per cent exercise daily, above the national average, and 38 per cent focus on self-healthcare. Health insurance coverage, at 52 per cent, is also marginally higher than the all-India average.

But emotional contradictions persist. While 55 per cent feel totally secure about future family support, 71 per cent fear loneliness in retirement, and 76 per cent worry about becoming financially dependent on their children. This “dependency paradox”, trusting family yet striving for independence, defines their emotional landscape.

Together, these two cohorts reveal that India’s retirement story is no longer just about savings. It is about confidence, dignity, health, and the search for emotional security in an increasingly independent old age.