Urban Indians Want to Retire Early, But Have Built Just 28 Per Cent Of Their Target Corpus, Says Study

The dream of retirement is changing in urban India. For many, it is no longer about waiting until the traditional retirement age of 58–60. Increasingly, people want the freedom to stop working earlier - but a large gap remains between that aspiration and the money they have actually saved.

According to the sixth edition of the Bharosa Talks India Retirement Index Study (IRIS 6.0), conducted by Axis Max Life Insurance in partnership with Kantar, seven in 10 urban Indians would like to retire before 58–60 if their financial needs were taken care of. Half of those aspiring to retire early want to achieve financial independence and retire before 50.

Yet, the reality looks very different for those closer to retirement.

As many as 82 per cent of respondents aged 45 and above (Gen X+) feel they may never be able to completely retire from work or business, as they expect to need a regular income. Among this group, 91 per cent regret not having started their retirement investments earlier.

The disconnect is also visible in the size of retirement savings. On average, urban Indians have accumulated only 28 per cent of the retirement corpus they believe they will need. While 61 per cent say they know how much money they would require to maintain their current lifestyle after retirement, only 11 per cent are confident that their existing corpus will last their lifetime. As many as 39 per cent fear their savings may run out within five years.

The findings suggest that knowing one's retirement number does not necessarily translate into being financially prepared for it.

Younger Indians Are Starting Earlier

The retirement mindset, however, appears to be changing among younger generations.

Half of urban Indians believe retirement planning should start with the first paycheque. On average, respondents say they should begin thinking about retirement savings by the age of 31. For Gen Z, the starting point is even earlier, at 29.

That thinking is beginning to show up in their financial behaviour too. Around 62 per cent of Gen Z respondents have already started investing for retirement. The proportion is higher among Millennials at 70 per cent and Gen X+ at 75 per cent.

The numbers suggest that retirement is no longer something younger Indians necessarily leave for the later stages of their careers. The bigger question is whether starting early will translate into savings that are large enough to support them through what could be a long retirement.

Rs 1 Crore Is No Longer Seen As Enough By Many

For years, Rs 1 crore has often been used as a convenient benchmark for retirement savings. The IRIS 6.0 findings suggest that this number is beginning to look less adequate to many urban Indians.

The share of respondents who believe Rs 1 crore or less is enough for a comfortable retirement has fallen from 77 per cent in 2025 to 70 per cent in 2026. Among households earning more than Rs 15 lakh a year, the proportion drops further to 51 per cent.

The shift may reflect changing expectations about life after work, along with concerns around inflation, healthcare expenses and the possibility of living longer. It also shows why there may not be a single retirement number that works for everyone.

For people closer to retirement, the concern is more immediate. Gen X+ respondents have accumulated only about 29 per cent of their target retirement corpus on average. And 91 per cent say they regret not starting their retirement investments earlier.

Retirement Is About More Than Money

Having enough money is only one part of being ready for retirement. The study also shows that Indians are paying attention to what their lives might look like after they stop working.

Health is an important part of that picture. Three-fourths of respondents expect to remain healthy and fit during their retirement years. About 59 per cent say they undergo regular or occasional health check-ups, while among those who regularly take part in physical activity, 44 per cent do so every day. Around 21 per cent also use wearable devices to keep track of their health.

The message is fairly simple: building a retirement corpus may help pay the bills, but staying healthy can determine how comfortably that money can actually be used. For many Indians, retirement planning is increasingly about preparing not just for the end of a career, but for the years that follow.

Health insurance is also becoming part of retirement preparation, with 52 per cent saying they have purchased it.

But financial security and physical health are only part of the picture. About 87 per cent expect to live with their children during retirement, underlining the continued role of family in India's retirement expectations. At the same time, the proportion confident about having family and social support during retirement has slipped from 87 per cent to 84 per cent.

Smaller Cities Are Catching Up

Retirement planning is gaining ground beyond India’s big cities. Tier II cities saw their Bharosa Talks IRIS score rise from 44 in 2025 to 48 in 2026, almost catching up with metros at 50. Tier I cities also scored 48.

There are some clear regional differences. The East scored 52, the highest among the four regions, while the West and South scored 49 each and the North 47. The South, in particular, made progress on the health front, with its health preparedness score rising to 47 from 43 last year.

Across urban India, however, the improvement has been gradual. The overall IRIS score moved up to 49 this year from 48 in 2025 and 44 in 2022. Financial preparedness improved slightly, from 51 to 52, while health preparedness stayed at 46. Emotional preparedness dipped from 58 to 57.

What stands out is the gap between the retirement people want and the retirement they may actually be able to afford. Many Indians are thinking about retirement earlier and want the freedom to stop working sooner. But having that freedom depends on whether their savings can support them for the years ahead.

For someone in their 20s or 30s, that could mean simply starting early and giving savings more time to grow. For someone nearing retirement, there is less time to make up the shortfall. They may need to look closely at how much they have saved, how long it needs to last and whether it can cover rising living and healthcare costs.

The idea of retirement, therefore, is changing. It is no longer just about reaching 58 or 60 and stopping work. Increasingly, it is about reaching a point where a person can decide whether to keep working, slow down or stop - without having to work simply because the money has run out.