India’s retirement preparedness is showing a steady improvement, with the India Retirement Index Study (IRIS 5.0) by Axis Max Life Insurance reporting a national score of 48, up from 44 in 2022. The findings underline a growing awareness of financial security, health preparedness, and emotional well-being – driven by a renewed emphasis on early planning and the increasing popularity of the National Pension System (NPS) as a formal retirement tool.
Conducted in partnership with Kantar, the fifth edition of IRIS reveals that half of urban Indians now believe retirement planning should begin as soon as they start earning. However, despite rising awareness, actual savings remain insufficient. Only 37% of respondents have achieved even a quarter of their retirement corpus target, while 63% believe their savings would last less than 10 years post-retirement.
NPS gains awareness
One of the key highlights of IRIS 5.0 is the growing familiarity with the National Pension System (NPS). Awareness about NPS has climbed to 66%, up from 59% in 2022 – reflecting a wider understanding of structured, long-term savings instruments. Yet, ownership remains low at around 17%, indicating a need for better financial education, simplified enrollment, and advisory support.
“NPS awareness has seen encouraging growth, but participation is still limited by complexity and lack of guidance,” the study stated. “As health consciousness and financial discipline improve, the next big focus should be on helping Indians move from awareness to measurable action – by embracing formal retirement options like NPS early in their careers.”
Sumit Madan, MD and CEO, Axis Max Life, said, “As health preparedness improves, the next frontier is building an adequate retirement corpus and emotional resilience. The study also highlights a growing segment of individuals uncertain about how to begin their planning, reinforcing the need for a trusted advisory support. Diverse segments such as gig workers, women, and return migrants require tailored and inclusive solutions.”
Among workplace-linked benefits, the Employee Provident Fund (EPF) continues to dominate, cited by 69% of respondents. However, employees increasingly expect a more holistic approach to retirement benefits. When asked what additional workplace offerings they value most, 55% of Indians chose regular health check-ups, while 49% preferred enhanced medical or hospitalization coverage. This shift suggests that modern retirement planning is no longer purely financial – it now integrates wellness, security, and emotional stability.
Health and financial readiness
The study found that health preparedness has recorded the sharpest gain, rising to 46 from 41 in 2022. Improved fitness habits, more frequent preventive check-ups, and higher health insurance adoption are driving this shift. Health insurance coverage has risen by 7 percentage points to reach 50%, while 81% of respondents said they engage in regular physical activity.
On the financial front, respondents now report awareness of an average of 11.6 financial products, compared to 8.7 in 2022. Friends and family (72%) remain the top sources of financial information, followed by financial advisors (47%) and employers (41%). This growing familiarity with diverse products – including NPS, mutual funds, and market-linked insurance – points to a maturing investment mindset across India’s working population.
Soumya Mohanty, MD and Chief Client Officer, South Asia, Kantar said “IRIS 5.0 highlights evolving retirement behaviors across India. The rise in product awareness and health-first behaviour is notable. The study’s richer segmental analysis provides actionable cues for policymakers, employers and financial service providers to move from awareness to measurable preparedness.”
Women and gig workers
Women continue to show slightly higher retirement preparedness, scoring 49 compared to 48 for men. While more women report optimism about their physical health and long-term well-being, they also express higher concerns about loneliness and dependence in later years. Gig workers, meanwhile, are emerging as a key segment, with an IRIS score of 47. They exhibit rising financial independence but remain underserved by formal retirement and health benefit schemes – a gap that NPS could help bridge through flexible and accessible participation models.
East India leads
Regionally, East India leads in overall preparedness, balanced across financial, health, and emotional factors. North India has seen the strongest post-COVID recovery in health preparedness, while West India has shown strong financial momentum driven by higher participation in equities, real estate, and NPS-linked investments. Southern India displayed a balanced profile, combining improving health sentiment and emotional resilience.
What does the study say
The IRIS 5.0 findings suggest that India’s working population is gradually moving toward a more structured and data-driven approach to retirement. With NPS gaining traction, rising health consciousness, and growing product literacy, the country is building the foundation for a financially secure and emotionally balanced retirement ecosystem.