New Delhi: Seven in 10 urban Indians aspire to retire before the traditional retirement age of 58-60 if their financial needs are taken care of, but a large gap between retirement ambitions and financial preparedness remains, with 82% of Gen X+ respondents expecting to continue working for regular income, according to a study by Axis Max Life Insurance's Bharosa Talks India Retirement Index Study (IRIS) 6.0.

The study found that urban Indians have accumulated only 28% of their target retirement corpus on average, while just 11% believe their savings will last throughout retirement. Another 39% said their corpus may not last even five years.

"One of the clearest messages from Bharosa Talks IRIS 6.0 is that retirement remains a financial challenge for many Indians," Sumit Madan, MD & CEO, Axis Max Life Insurance, said.

"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," he said.

The study also showed that retirement planning is beginning earlier among younger Indians. One in two urban Indians believes planning should start with the first paycheque, while the average age for beginning retirement savings is 31 years. For Gen Z, this falls to 29 years.

This is translating into early action, with 62% of Gen Z respondents already investing for retirement, compared with 70% of Millennials and 75% of Gen X+. The findings suggest that younger generations are beginning the retirement journey earlier, even as older cohorts remain concerned about whether their savings will be sufficient.

The perception of the retirement corpus needed is also changing. The share of respondents who believe Rs 1 crore or less is sufficient for a comfortable retirement declined to 70% in 2026 from 77% in 2025. Among households earning more than Rs 15 lakh annually, the figure was 51%.

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; 62% said they knew the corpus required for retirement, while 52% claimed to have health insurance and 41% actively engaged in physical activities.

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

This report was published from a syndicated wire feed. Apart from the headline, the EdexLive Desk has not edited the copy.