As 2025 draws to a close, Indians are taking a hard look at their financial futures, and retirement has quietly risen to the top of the priority list, but the numbers tell a worrying story. While retirement is now the #1 financial goal for many, only 37 percent of Indians are actually prepared for it. This growing gap between intention and action highlights how retirement planning has emerged as one of India’s most pressing financial concerns, driven to the top by rising longevity, economic uncertainty and a growing awareness among working professionals and middle-income households.
The numbers point to a major shift in behaviour. Retirement has jumped from the #8 position to the top priority in 2025, showing how strongly Indians are now focused on their future. At the same time, actual planning has fallen sharply, from 67 percent in 2023 to just 37 percent now. Preference for market linked options is rising, with 62 percent depending on professional distributors for retirement decisions, up from 44 percent earlier, while adoption of such investments has increased to 35 percent from 24 percent. However, only 25 percent currently earn alternate income, even though intent to do so has risen to 44 percent, suggesting that aspirations are growing faster than preparation.
According to the Retirement Readiness Research Report 2025, this gap between aspiration and readiness is now one of India’s biggest financial challenges. While awareness is rising and attitudes are evolving, the lack of timely action leaves millions vulnerable to uncertainty in their later years. The findings highlight the urgent need for stronger financial education, workplace-driven support and clearer planning tools to ensure that India’s retirement dreams do not remain just intentions but become a secure reality.
While retirement has become the number one priority, readiness has declined. This is not a setback but a sign of positive evolution, as Indians are beginning to separate risk protection from actively building their future. Bridging the gap between aspiration and action will require collective effort from investors, advisors, employers and regulators,” said Abhishek Tiwari, CEO, PGIM India Asset Management Private Limited.
With dreams of a secure retirement rising but preparation lagging, India must act now to turn these plans into reality.
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