New Delhi: Nearly 70% of urban Indians would like to retire before the traditional retirement age of 58-60 if their financial needs are fully taken care of, according to the India Retirement Index Study (IRIS) 6.0 released by Axis Max Life Insurance.

The study highlights a growing interest in early retirement and financial independence, but also points to a significant gap between retirement aspirations and actual financial preparedness. Half of those who want to retire early said they would like to achieve Financial Independence and Retire Early (FIRE) before the age of 50.

The findings are based on responses from 4,134 households across metropolitan, Tier I and Tier II cities in India.

Early retirement gains popularity

The survey suggests that retirement is increasingly being viewed not simply as an age at which people stop working, but as a stage where individuals have enough financial independence to decide whether they want to continue working.

Among those aspiring to retire early, half want to reach the FIRE milestone before turning 50.

The findings indicate that financial security remains central to these aspirations. Respondents were willing to consider retirement earlier than the traditional 58-60 age range if their financial requirements could be adequately met.

This growing interest in early retirement is also being accompanied by greater awareness of the need to plan for retirement well in advance.

Retirement planning may start with first salary

According to the study, one in two urban Indians believes retirement planning should begin with the first paycheque.

On average, respondents said retirement planning should begin at around 31 years of age.

The perceived ideal starting age is even lower among younger respondents. Gen Z respondents identified 29 years as the preferred age to start retirement savings, compared with 31 years for Millennials and 34 years for Gen X+ respondents.

The findings suggest that younger generations are becoming more conscious of the need to build retirement savings over a longer period.

Starting earlier gives individuals more time to accumulate savings and investments, although the amount required for retirement will vary depending on income, expenses, lifestyle and other financial commitments.

Retirement corpus remains a concern

Despite the strong interest in early retirement, the survey found that many urban Indians are not confident that their retirement savings will last.

About 61% of respondents said they know the corpus required to sustain their current lifestyle during retirement. However, only 11% believe their retirement corpus would last for their entire lifetime.

At the other end of the spectrum, 39% believe their retirement corpus would not last even five years.

The figures highlight the difference between knowing how much money may be needed for retirement and actually having sufficient financial resources to support that period.

For people planning early retirement, the challenge can be greater because their accumulated savings may need to support them for a longer period.

Younger Indians start investing earlier

The study also found that younger Indians are beginning to invest for retirement relatively early.

Among Gen Z respondents, 62% said they had already started investing for retirement. The proportion was higher among Millennials at 70% and among Gen X+ respondents at 75%.

The findings indicate that retirement investing is not limited to people approaching the traditional retirement age.

At the same time, the difference between investment participation and confidence about having enough money for retirement shows that starting to invest is only one part of retirement preparedness.

The size of the retirement corpus, investment duration, future expenses and inflation can all influence whether accumulated savings are sufficient.

Many may continue working after retirement

The study also examined attitudes towards employment in later life.

According to the findings, 82% of Gen X+ respondents expect to continue working for a steady income. Axis Max Life Insurance managing director and CEO Sumit Madan said the finding indicates that retirement is increasingly being viewed as financial freedom and the ability to choose whether to work rather than simply reaching a particular age.

This suggests that continuing to work after reaching the traditional retirement age may increasingly be a financial choice rather than something that is necessarily planned as a permanent part of employment.

For some households, additional income from work could help extend the life of their retirement savings.

Health is another retirement priority

Financial preparedness is not the only concern highlighted by the study. Health has also emerged as an important component of retirement planning.

Around 75% of respondents expect to remain healthy and fit during retirement, while 52% said they had purchased health insurance, according to the survey.

Healthcare expenses can become an important consideration during retirement, particularly as people plan for a period when regular employment income may no longer be available.

The survey therefore indicates that retirement preparedness extends beyond building a financial corpus and also includes planning for healthcare and other long-term expenses.

Gap between retirement aspirations and preparedness

The findings present a clear contrast between the desire for early retirement and confidence in financial preparedness.

A large share of urban Indians would prefer to retire before 58-60 if their financial needs are met. At the same time, only a small proportion believes their current retirement corpus would last throughout their lifetime.

The survey also shows that people are becoming more aware of the importance of starting retirement planning early. Half of respondents believe the process should begin with the first salary, while younger generations report starting their retirement investments relatively early.

However, the results indicate that early investment does not automatically translate into confidence about long-term financial security.

Retirement planning becomes increasingly important

The IRIS 6.0 findings highlight changing attitudes towards retirement among India’s urban population.

The traditional idea of working until the late 50s or early 60s appears to be giving way to an interest in financial independence and greater flexibility over when and whether to work.

However, the survey also shows that many people remain uncertain about whether their savings will be sufficient for the entire retirement period.

For those seeking early retirement, the findings underline the importance of estimating long-term expenses, healthcare costs and the required retirement corpus before leaving regular employment.

As retirement aspirations evolve, the challenge for households will be to balance the desire for financial independence with the need to build sufficient resources for a potentially long post-work period.