Young Indians Eye Early Retirement, But Financial Readiness Lags Behind: Grant Thornton Survey
New Delhi, 7th June 2025: The notion of retiring at 60 is rapidly losing relevance among India’s younger workforce, according to a new survey by Grant Thornton Bharat, which reveals a growing preference for early retirement, even as savings habits lag behind ambitions.
The survey highlights that 43% of respondents under the age of 25 wish to retire between the ages of 45 and 55, a significant deviation from the traditional retirement age of 60 in the private sector and 60–65 in government service. Meanwhile, 56% still prefer to retire between the ages of 55 and 65, in line with current national trends.
Aspirations vs. Reality: The Pension Gap
The survey brings to light a concerning disconnect between retirement expectations and financial preparedness. More than 55% of participants expect a post-retirement monthly income exceeding ₹1 lakh. However, only 11% believe their current savings and investments are sufficient to support such a lifestyle.
Risk Appetite Rising Among Gen Z
Younger Indians are increasingly showing a bold investment mindset. Around 31% of respondents under 25 prefer high-risk, high-return investment strategies. This reflects a rising trend of financial ambition and risk tolerance, even as traditional savings avenues remain popular.
Despite the risk-taking inclination, 39% of respondents still view government-backed pension schemes as the most secure investment. Reflecting this demand, the government has introduced reforms, including the Unified Pension Scheme (UPS) which replaces the National Pension Scheme (NPS) for central government employees.
Unified Pension Scheme (UPS): A New Chapter
The newly launched UPS offers a lifetime pension equal to 50% of the last drawn salary, along with inflation-adjusted dearness allowance (DA) increases and a minimum assured monthly pension of ₹10,000. This marks a significant step towards strengthening the formal pension framework in India.
NPS Vatsalya: A Pension Plan for the Next Generation
To promote long-term financial security for the youth, the government has also introduced the NPS Vatsalya scheme. This child-focused pension-linked product allows minors and NRIs to enroll, with annual contributions beginning at just ₹1,000. The initiative aims to build financial discipline and early security for future generations.
A Call for Inclusive Reform
Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat, emphasized the importance of a strong policy framework. “As India’s working population continues to grow, the gap between retirement expectations and actual savings is widening. We need a robust and inclusive pension ecosystem that supports capital formation, economic stability, and the lifecycle needs of all citizens,” said Iyer.
Looking Ahead
The survey results underscore a major generational shift in attitudes toward retirement and financial planning. As aspirations rise and economic conditions evolve, India’s policymakers may need to recalibrate retirement and pension policies to accommodate the changing expectations of its youth-driven economy.
