Mumbai, Dec 29:- PGIM India Mutual Fund today released its third edition of Retirement Readiness Report 2025, a study that holds a mirror to the evolving hopes, anxieties, and ambitions of Indian households. In a nation where incomes are rising and self-identity is being redefined, the report reveals a striking paradox: Retirement has surged to become the No. 1 financial priority for the first time ever, yet actual preparedness, having a plan in place has sharply declined to just 37%, down from 67% in 2023 report.
Here are some key findings from the survey;
- Retirement climbs to #1 priority in 2025, a leap from 8th place as lifestyle and entrepreneurial goals overshadow family-centric concerns.
- Planning collapses despite intent surge. Only 37% have a retirement plan in 2025 vs 67% in 2023, as people seems to predominant shift from insurance-led approaches to clearer separation between protection and wealth creation.
- India’s money mindset flips from fear-driven security to aspiration-driven ambition blending protection with progress and lifestyle freedom.
- Mutual funds dominate retirement planning. Mutual fund distributor preference jumps to 62% (from 44% in 2023), adoption rises to 35% (from 24% in 2023) with NPS, PPF, and Retirement-focused funds gain traction. New age products like REITs make a beginning.
- Alternate Income Adoption Slows to 25%, But Intent Jumps to 44%—lifestyle goals and ‘Never Retire’ mindset fuel new earning aspirations.
A New Financial Mindset: From Security to Self-Focus
The report also uncovers a striking shift in priorities. Family security and health emergencies, once dominant, have slipped down the list. In their place, aspirations such as lifestyle upgrades, starting a business, and personal fulfilment are rising rapidly. Is this because family and health have become “hygiene factors” in a more affluent India? Indians are beginning to give themselves permission to dream beyond mere survival, envisioning a retirement that reflects personal aspirations rather than just financial security? While the answer is still unfolding, the trend is unmistakable: Indians are moving from security-first thinking to aspiration-driven planning, embracing a future where personal goals and self-actualization are as important as traditional notions of safety.
“While the retirement became no. 1 priority, but readiness has declined. This is not a setback but a sign of positive evolution. Indians are beginning to distinguish between safeguarding against risks and actively building future for themselves. With rising sense of surplus and families moving beyond simply providing for children to planning for their own retirement, reflect a maturing mindset focused on self-driven security and dignity. To truly close the gap between aspiration and action, every stakeholder investors, advisors, regulators, and fund houses—must work together to create an inclusive, supportive ecosystem that empowers individuals to take the next step. If we succeed, India will move from heightened intent to a future where active retirement planning is the norm,” said Abhishek Tiwari, CEO, PGIM India Asset Management Private Limited.
“Having witnessed the evolution of India’s financial landscape, I see this report as capturing a dramatic shift in household priorities. For years, the average Indian pursued a ‘catch-all’ number with no specific goal. Now, rising affluence and the impact of the pandemic have propelled specific, self-oriented goals like retirement planning, lifestyle upgrades, and entrepreneurship to the forefront, running parallel to traditional family-centric concerns. This marks a profound mental evolution, from ‘it’s all about the family’ to also asking ‘what about me?’ As financial planning grows more complex, the role of professional advice becomes even more critical. While the rise of DIY investing is encouraging, I strongly believe that even the most confident investors should seek a qualified advisor’s second opinion. This not only stress-tests plans and eliminates biases, but ensures that true preparedness is never left to chance, ” said Ajit Menon, Senior Advisor, PGIM India Asset Management Private Limited.
“Our research highlights that anxiety and negative emotions are far more prevalent among those who have not planned for retirement, underscoring that financial wellness is as much psychological as it is monetary. The gap between awareness and action remains significant, with many Indians struggling to translate intent into concrete steps. What stands out is the enduring collective mindset—Indians continue to look to employers as anchors of stability. In this context, employer-led programs can become default enablers, bridging the gap by offering education, tools, and especially the flexibility to earn passive income. When organizations step up to make financial wellness achievable, workplace-led initiatives become true game-changers for retirement readiness across the workforce,” said Dr. Sagneet Kaur, SVP Behavioural Finance & Consumer Insights, PGIM India Asset Management Private Limited.
The Retirement Readiness Report 2025 brings clarity to the often overwhelming world of retirement planning. For investors, the Retirement Readiness Report 2025 demystifies retirement planning, replacing abstraction and anxiety with actionable insights, practical benchmarks, and real-life stories. By highlighting the behavioural barriers and emotional realities that shape financial decisions, the report empowers individuals to move from uncertainty to informed action, making retirement planning a tangible and achievable goal. For advisors and distributors, the report is a catalyst for deeper engagement, offering behavioural insights and real-world data that enable more meaningful, goal-based conversations and help clients stress-test their retirement readiness against common biases. For employers and regulators, the findings highlight the transformative potential of workplace-led financial wellness, showing how education, tools, and flexibility to earn passive income and policies around the same can behaviourally bridge the gap between intent and action.