Nearly three in four people in north India aspire to retire before the traditional retirement age, with 49% specifically targeting financial independence before age 50. According to a new study by Axis Max Life Insurance, this ambitious retirement timeline contrasts sharply with current financial preparedness levels. The study found that respondents had accumulated just 26% of their target retirement corpus on average, marginally lower than the 27% recorded in the previous survey. Only 26% expected their retirement savings to last for at least 10 years, compared with 38% in the fifth edition of the study.
North India recorded a retirement preparedness score of 47, down from 48 in the previous edition. As reported by Axis Max Life Insurance, this score was also below the national average of 49, placing the region at the bottom among India's four zones. The proportion of North Indians who had started investing for retirement rose to 68% from 64% in the previous edition, although it remained below the national average of 70%. Awareness of retirement planning also remains a concern, with only 39% of respondents believing people should start planning for retirement as soon as they begin earning, against the national average of 50%.
The study revealed that 32% of North Indians believed they would need a retirement corpus exceeding ₹1 crore, up from 21% in the previous edition. This increase highlights the growing financial expectations associated with maintaining a comfortable lifestyle after leaving work. The findings point to a gap between retirement expectations and financial readiness, even as participation in retirement investing improves. Respondents in the region put the ideal age to start thinking about retirement savings at around 33, compared with 31 nationally.
Beyond financial considerations, North India's health preparedness score fell to 44 from 46, the lowest among all zones. According to the study, only 70% expected to remain fit and healthy during retirement, compared with 75% nationally. Emotional wellbeing emerged as another major challenge, with 81% worried about loneliness during retirement, against the national average of 74%. Confidence in receiving support from family and friends also declined, falling to 84% from 88%.
Anurag Gupta, Chief Business Officer and Head of Retirement at Axis Max Life, emphasized that the findings highlight the need for people to start investing early and consistently while paying attention to their physical health and social support systems. As reported by Axis Max Life Insurance, the report suggests that achieving early retirement will require more than aspiration, with sustained financial planning and broader preparation for life after work remaining essential. The study indicates that while retirement expectations are rising, current financial readiness and preparation levels lag behind these ambitious timelines.
