NEW DELHI, India — Retirement planning has emerged as the top financial priority for Indians, even as actual preparedness has declined sharply, according to a report released Monday by PGIM India Mutual Fund.
The report found that while retirement now ranks first among financial goals, the share of respondents with a concrete plan in place fell to 37 percent, down from 67 percent in 2023.
Retirement planning climbed to the top spot from eighth place last year, overtaking traditionally dominant concerns such as family security and health emergencies. The report said the shift reflects a broader transition in financial behavior, moving away from fear-driven security toward aspiration-led goals that emphasize lifestyle freedom, personal fulfillment, and long-term independence.
Family-centric priorities, once at the core of financial planning, have slipped as goals such as lifestyle upgrades, entrepreneurship, and self-driven ambitions gain prominence.
The fund house said mutual funds have emerged as the leading retirement investment vehicle. Preference for selecting products through distributors increased to 62 percent from 44 percent in 2023, while mutual fund adoption for retirement rose to 35 percent from 24 percent. The report also noted growing interest in the National Pension System, the Public Provident Fund, and retirement-focused mutual fund schemes.
Abhishek Tiwari, chief executive officer of PGIM India Asset Management Private Limited, said the decline in preparedness should not be viewed as a negative trend.
“This is not a setback but a sign of positive evolution,” Tiwari said. “Indians are beginning to distinguish between safeguarding against risks and actively building a future for themselves. With a rising sense of surplus and families moving beyond simply providing for children to planning for their own retirement, it reflects a maturing mindset focused on self-driven security and dignity.”
The report also found that adoption of alternate income sources declined to 25 percent, even as the intent to pursue such options rose to 44 percent.
Ajit Menon, senior advisor at PGIM India Asset Management Private Limited, said rising affluence and the lasting impact of the pandemic have reshaped financial priorities.
“Self-oriented goals like retirement planning, lifestyle upgrades, and entrepreneurship have moved to the forefront, running alongside traditional family-centric concerns,” Menon said. (Source: IANS)
