Retirement savings are a growing concern for urban Indians, with over 57% of the population believing their nest egg will run out within 10 years after retiring, according to the latest India Retirement Index Study (IRIS) 4.0 by Max Life Insurance in partnership with KANTAR.

Of this group, 30% fear their savings will be exhausted in just five years, while another 27% expect their funds to last between five to ten years.

This widespread anxiety reflects a significant gap in financial preparedness.

Only 24% of respondents believe their savings will last beyond ten years, and a mere 19% feel confident their retirement corpus will support them for their entire retirement life.

How India Retirement Index Study (IRIS) 4.0 compares with previous year reports?

(Source: Max life Insurance)

Uncertainty and rising costs fuel retirement worries

The study reveals a complex mix of factors driving these concerns.

A significant 31% of people are still unsure how much money they need to maintain their current lifestyle in retirement, leaving them vulnerable to financial instability.

Furthermore, inflation and rising medical costs are major stressors:

1. 77% worry that their retirement savings will be depleted due to the increasing cost of medical care.
2. 78% fear that the rising cost of living and inflation will erode their savings faster than expected.

Regional and demographic insights

The IRIS 4.0 study highlights regional differences in retirement readiness, pointing to the need for more targeted financial planning.

Prashant Tripathy, CEO and Managing Director of Max Life, said that while overall awareness has improved, “1 in 3 urban Indians still feel underprepared for retirement.”

Life expectancy is increasing due to advances in healthcare, and as people live longer, the importance of long-term financial planning becomes more critical.

Interestingly, the study also examined retirement readiness in the gig economy, finding that gig workers are significantly less prepared than salaried individuals.

Some positive trends

Despite the concerns, the IRIS 4.0 survey showed some encouraging trends.

Urban Indians are becoming more proactive in securing their financial future.

Two out of three people are now using life insurance as a key tool for retirement planning.

Urban working women, in particular, are leading the charge in retirement preparedness.

The path ahead

While retirement preparedness is slowly improving, the study makes it clear that much more needs to be done. With inflation and medical costs at the forefront of people’s concerns, financial education and early planning are vital for securing a stable retirement.