New Delhi [India], December 31 : The new retirement landscape of India is undergoing a significant transformation as households pivot from long-term wealth creation toward immediate financial survival.
According to the PGIM India Mutual Fund Retirement Readiness Survey 2025, there is a widening gap between retirement aspirations and actual preparation. While retirement has surged to become the top financial priority for Indian families, actual readiness has declined sharply, with only 37 per cent of respondents currently holding a retirement plan, down from 67 per cent in 2023.
The report notes "Retirement planning has surged to the No. 1 financial priority for Indian familiesup from sixth place in the previous survey. However, readiness has sharply declined: only 37% have a retirement plan today, compared to 67% in 2023."
This decline in planning occurs alongside a marked increase in household financial anxiety. The survey indicates that 46 per cent of respondents now report significant financial stress, a jump from 32 per cent just two years ago. This stress is primarily driven by rising living costs, healthcare expenses, and family responsibilities, which have forced a shift in focus toward managing immediate expenses such as EMIs, rent, and education. Spending on these areas has risen from 59 per cent to 65 per cent in 2025, effectively undermining future financial security.
The report reflects a nation grappling with unprecedented financial anxiety, where the shift from long-term wealth creation to short-term survival is reshaping the fabric of financial lives.
The survey observed that while readiness has declined, the fact that retirement is now the number one priority signals a positive evolution. People are beginning to distinguish between safeguarding against risks and building a future for themselves, representing a mental evolution toward self-focused security and dignity.
The survey highlights a growing uncertainty regarding the specifics of retirement. Less than half of the participants know the size of the corpus required for their retirement, and only 43 per cent have established a contingency plan for financial shocks. Furthermore, dependency on family remains high, with 42 per cent of respondents expecting to rely on children or relatives post-retirement, despite shrinking family sizes making traditional safety nets less reliable.
A critical link in retirement readiness appears to be the lack of alternative income streams. Only 25 per cent of those surveyed possess an alternate income source, and a mere 14 per cent have both a retirement plan and an alternate income. Additionally, a digital advice gap has emerged; 32 per cent of followers act on financial advice from social media influencers without verification, while professional advisors remain underutilized. Among those who do plan, 70 per cent did not consult a professional financial advisor.
The report emphasized that the "awareness-action gap persists: traditional investments dominate, while retirement-focused portfolios remain underdeveloped". It called for collaboration among investors, advisors, regulators, and fund houses to create a supportive ecosystem that empowers individuals to take the next step in their financial planning.
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