Despite increased awareness and rising retirement corpus expectations among Indians, a gap remains between current savings and the actual funds required for a comfortable retirement, according to new survey findings.
Indians are edging closer to retirement products such as the National Pension System, but they still appear to underestimate how much money they will need to stop working comfortably, according to HDFC Pension Fund Management Ltd.’s latest survey. The company’s NPS Preference Index Study 2026 put the index at 57 out of 100, up from 54 in the first edition in 2023, suggesting that awareness of the scheme is turning into more serious consideration among savers. HDFC Pension said the strongest improvement came in consideration, which rose to 59, while familiarity reached 58 and appeal moved to 56.
The survey also found that Indians now think they will need a retirement corpus of Rs 1.5 crore, up from Rs 1.34 crore in 2023. Even so, HDFC Pension said that figure still falls short of what would typically be needed relative to household income, pointing to a persistent gap between expectations and the real cost of retiring. Rising medical expenses were the biggest retirement worry, cited by 47% of respondents, followed by age-related health concerns at 44%. Retirement planning remained one of consumers’ main financial priorities, behind medical expenses, emergency savings and children’s education.
The findings fit a wider pattern seen in other recent surveys. Business Standard reported in May that 75.5% of Indians aged 40 to 60 did not have a detailed retirement plan, even though more than 61% of those without one still expected to retire comfortably. In September, the paper also reported that the traditional Rs 1 crore benchmark was losing credibility among urban households, with only 51% of respondents in higher-income families saying that Rs 1 crore or less would be enough for a comfortable retirement. Financial experts have increasingly warned that inflation and healthcare costs could make yesterday’s targets inadequate by the time today’s workers retire.
HDFC Pension said product changes in the NPS are also helping to drive interest. Recent enhancements were the leading reason for enrolment at 39%, just ahead of tax savings at 38% and better returns at 36%. Awareness of specific improvements was still limited, but the most recognised included 100% equity allocation and more flexible payout options. Tax-free withdrawals after age 60 and the scheme’s status as a government-regulated product remained among its main attractions. Even so, lock-in requirements and the obligation to buy an annuity continued to weigh on adoption, although lack of knowledge, which was the top barrier in 2023, slipped down the list this time.
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