New Delhi— A growing number of young Indians, especially those aged 25 and under, are aiming to retire early—between the ages of 45 and 55—according to a new report released on Tuesday by Grant Thornton Bharat.
The survey found that 43% of respondents in this age group prefer early retirement, while a majority of all respondents (56%) still plan to retire between 55 and 65, consistent with traditional retirement norms in India.
Ambitions for post-retirement income are also rising, with over 55% of those surveyed expecting a monthly pension of more than Rs 1 lakh. However, just 11% believe their current investment portfolios are adequate to meet those goals.
Government-backed pension plans remain the most favored, with 39% of respondents choosing them over private alternatives. Among those under 25, 31% expressed a strong preference for high-risk, high-return options, indicating a growing risk appetite among India’s youth.
India’s pension landscape has undergone recent changes, including the replacement of the National Pension Scheme (NPS) with the Unified Pension Scheme (UPS). Under UPS, government employees are guaranteed 50% of their last drawn salary as a lifelong monthly pension, along with periodic cost-of-living adjustments and a minimum pension of Rs 10,000.
In addition, the government has introduced the NPS Vatsalya scheme, which allows minors—including NRIs—to open pension accounts with flexible contributions starting at Rs 1,000 annually. The program aims to secure children’s long-term financial futures and features an online registration platform for ease of access.
“As India’s working population grows, the disconnect between expected retirement needs and actual saving behaviors is becoming increasingly clear,” said Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat. “A strong, inclusive pension system is essential to address lifecycle needs while supporting broader economic goals like capital formation and financial stability.”
The report also highlighted concerns over insufficient gratuity payouts and low uptake of annuity-based investments, which contribute to uncertainty around guaranteed income after retirement.
“As India becomes the world’s fourth-largest economy, a robust pension system is essential,” added Ramkumar S, Partner at Grant Thornton Bharat. “With the country’s aging population expected to rise significantly by 2050, financial independence in retirement will hinge on dependable pension structures.” (Source: IANS)
