7 in 10 of urban Indians surveyed seek early retirement, but 82% of Gen X expect to keep working: Report

Seven in 10 urban Indians aspire to retire before the traditional retirement age of 58-60 if their financial needs are taken care of, while half want to achieve financial independence and retire early (FIRE) before turning 50, according to Axis Max Life Insurance’s Bharosa Talks India Retirement Index Study (IRIS) 6.0.

However, this aspiration appears to weaken as retirement approaches, with 82% of Gen X respondents (aged 45 and above) saying they may never be able to retire from work or business because they would need a steady regular income.

Retirement corpus may fall short of needs

Another 91% of those aged 45 and above regret not starting their retirement investments earlier. The study found that urban Indians have accumulated only 28% of their target retirement corpus on average, while a small fraction believe their savings will last throughout retirement.

Another 39% of the respondents said they are concerned about their retirement corpus not even lasting for five years after exiting the job market. This highlights the level of financial uncertainty around retirement planning in the country.

The study, published on September 16, 2026, was conducted with Kantar across 3,489 households in 40 cities across India during July-August 2026 and covered urban respondents aged 22-65.

Young Indians are planning retirement early

According to Axis Max Life Insurance’s chief executive officer and MD Sumit Madan, one of the clearest messages from this recent study is that retirement remains a financial challenge for many Indians.

“The finding that 82% of Gen X respondents expect to continue working for a steady income highlights a critical reality: retirement is not about reaching a certain age, but about having the financial freedom to choose what comes next,” the top executive noted.

The study also showed that retirement planning is starting earlier among younger Indians. One in two urban Indians believes that planning should start with the first salary, while the average age for beginning retirement savings is 31 years.

Among Gen Z, some individuals are starting retirement planning as early as age 29. The findings suggest that younger generations are way ahead in terms of planning their finances, even as older cohorts remain concerned about whether their savings will be sufficient.

This mindset is also translating into early action among individuals, with 62% of Gen Z respondents already investing for retirement, compared with 70% of Millennials and 75% of Gen X.

Retirement corpus expectations are rising

More urban Indians now believe they will need a larger retirement corpus to maintain a comfortable lifestyle. The share of respondents who consider ₹1 crore or less sufficient fell to 70% in 2026 from 77% in 2025. Among households with annual incomes above ₹15 lakh, only 51% said ₹1 crore or less would be enough.

The Bharosa Talks IRIS score, tracking the nation’s retirement preparedness, stood at 49 in 2026, up from 48 in 2025 and 44 in 2022. Financial preparedness improved to 52 from 51, while health preparedness remained at 46 and emotional preparedness stood at 57.

Retirement preparedness also showed a narrowing gap across urban tiers, with the IRIS score for Tier II cities rising to 48 in 2026 from 44 in 2025, while metros remained at 50 and Tier I cities at 48. The East recorded the highest regional score at 52, followed by West and South at 49 and North at 47.

Women recorded a score of 49, at par with men. Among women, 62% said they knew the corpus required for retirement, while 52% claimed to have health insurance and 41% actively engaged in physical activities.