India’s retirement readiness improves, but financial sufficiency still a major concern:  Axis Max Life 5.0 study

Axis Max Life Insurance, in partnership with Kantar Insights, has released the fifth edition of its India Retirement Index Study (IRIS 5.0), marking five years of tracking the country’s preparedness for life after work.

The study was conducted across 28 cities. Over 2,200 households reveals that India’s overall retirement readiness has grown from 44 in 2022 to 48 in 2025, showing a steady improvement in health preparedness but lingering financial and emotional challenges.

According to the report, the health preparedness index has seen the largest increase — from 41 in 2022 to 46 in 2025 — reflecting growing awareness of fitness and preventive health. Nearly 79% of urban Indians believe they will remain healthy and active in retirement, with 43% now engaging in daily physical activity. Health insurance ownership has also increased by seven percentage points over the past three years.

However, financial preparedness remains a key concern. While more Indians are starting to plan early — with half saying retirement planning should begin before the age of 35 — only 37% believe their savings will last beyond a decade after they stop working. The report notes that 7 out of 10 people underestimate how much they need for a comfortable retirement, with most believing that ₹1 crore will be sufficient.

Sumit Madan, CEO of Axis Max Life, said, “The data shows the importance of shifting from awareness to effective action, encouraging individuals to adopt a long-term perspective on retirement savings.”

The emotional preparedness index remains steady at 58, with ongoing concerns about loneliness and dependence. Around 71% of respondents worry about social isolation in later years, and almost three out of four fears becoming financially dependent on family members after retirement.

Interestingly, women still lead in overall retirement readiness, showing greater financial confidence and better health awareness than men. Gig workers have also reduced the financial confidence gap with salaried workers, indicating increasing optimism and stability in this segment.

According to the report, India’s growing health awareness and early financial planning are positive signs — but reaching a truly secure retirement will need increased financial literacy, realistic corpus goals, and ongoing attention to emotional well-being.