Summary of this article
82.73 per cent of respondents remain unprepared for retirement.
76.09 per cent have no loans, while 75.14 per cent invest.
Insurance gaps highlight challenges in long-term financial planning.
Retirement planning is a significant gap in India’s financial preparedness, with 82.73 per cent being unprepared for a life after work, despite 76.09 per cent reporting no loans, according to a recent study by Grant Thornton Bharat.
India is experiencing a disconnect between daily living expenses and preparing for long-term goals, the report, titled India's Financial Resilience Report 2026, has found. How we budget and spend our income can definitely translate to how we handle our money, but gaps in retirement planning and financial stability point to a bigger question: are we actually financially secure, or are we simply managing to get by without preparing for tomorrow?
Monthly Budgeting And Spending Habits
The study has found that 38.14 per cent have always followed a monthly budget. Among those who always budgeted, people aged 35 to 44 accounted for 47 per cent, while those aged 55 to 64 accounted for 44 per cent.
Confidence in managing expenses without a credit card has also been high. Around 74.38 per cent have felt somewhat confident about covering their costs without using a credit card, while 20.87 per cent have felt very confident. Only 4.74 per cent have reported a lack of confidence.
Spending on insurance and healthcare-related needs has varied. The study has found that 15.56 per cent have reported no spending on health, life or car insurance, medical bills and parental care. Among this group, 91 per cent earn less than Rs 15 lakh annually. The study has also found that 47 per cent of people under 25 have reported no spending in these categories.
Insurance Coverage And Financial Protection
Term life insurance has emerged as the preferred option, with 80.46 per cent choosing it. Among people under 34, the preference has reached 84 per cent.
For health insurance, 58.63 per cent have reported coverage between Rs 25 lakh and Rs 50 lakh. Life insurance coverage has varied, with 21.44 per cent reporting cover below Rs 20 lakh, while 60.53 per cent have reported coverage between Rs 50 lakh and Rs 1 crore.
Confidence in insurance providers has differed between health and life policies. Only 15.94 per cent have expressed confidence in both providers. Meanwhile, 61.10 per cent have trusted their health insurance provider but lacked confidence in their life insurance provider. Another 14.99 per cent have lacked confidence in both.
Borrowing Patterns And Retirement Readiness
Around 76.09 per cent of respondents have had no loans. Home loans have been reported by 10.44 per cent, personal loans by 7.97 per cent and vehicle loans by 6.45 per cent. Credit card loans or overdue balances have affected 5.31 per cent.
Investments without borrowings have also been common, with 75.14 per cent reporting investments but no loans.
Retirement planning has presented a different picture. As many as 82.73 per cent have reported being unprepared for retirement. Another 11.95 per cent are somewhat prepared, while only 5.31 per cent consider themselves fully prepared.
The younger generation has faced a particularly wide preparation gap. Around 92 per cent of those under 34 are unprepared for retirement. Among people aged 35 to 54, 77 per cent are inadequately prepared.
Managing day-to-day expenses and gaining long-term financial stability are entirely different. Building long-term financial stability also depends on having sufficient insurance and a plan to meet unexpected expenses without putting too much pressure on the wallet.
