PGIM India Mutual
Fund Unveils the Third Edition of Retirement Readiness Report 2025
India’s Retirement Revolution: Aspirations Rise, Readiness Falls - A Call to Action for a New Era of Financial Well-being.
Mumbai / Chennai, December
29, 2025:
PGIM India Mutual Fund today released its third edition of Retirement Readiness
Research Report 2025, a study that holds a mirror to the evolving hopes,
anxieties, and ambitions of Indian households. In a nation where incomes are
rising and self-identity is being redefined, the report reveals a striking
paradox: Retirement has surged to become the No. 1 financial priority for the
first time ever, yet actual preparedness, having a plan in place has sharply
declined to just 37%, down from 67% in 2023 report.
Here are some key findings
from the research:
1.
Retirement
climbs to #1 priority in 2025, a leap from 8th place as lifestyle and
entrepreneurial goals overshadow family-centric concerns.
2.
Planning
collapses despite intent surge. Only 37% have a retirement plan in 2025 vs 67%
in 2023, as people seems to predominant shift from insurance-led approaches to
clearer separation between protection and wealth creation.
3.
India’s
money mindset flips from fear-driven security to aspiration-driven ambition
blending protection with progress and lifestyle freedom.
4.
Mutual
funds dominate retirement planning. Mutual fund distributor preference jumps to
62% (from 44% in 2023), adoption rises to 35% (from 24% in 2023) with NPS, PPF,
and Retirement-focused funds gain traction. New age products like REITs make a
beginning.
5.
Alternate Income Adoption Slows to 25%, But Intent Jumps to
44%—lifestyle goals and ‘Never Retire’ mindset fuel new earning aspirations.
A New Financial
Mindset: From Security to Self-Focus
The report also
uncovers a striking shift in priorities. Family security and health
emergencies, once dominant, have slipped down the list. In their place,
aspirations such as lifestyle upgrades, starting a business, and personal fulfilment
are rising rapidly. Is this because family and health have become “hygiene
factors” in a more affluent India? Indians are beginning to give themselves
permission to dream beyond mere survival, envisioning a retirement that
reflects personal aspirations rather than just financial security? While the
answer is still unfolding, the trend is unmistakable: Indians are moving from
security-first thinking to aspiration-driven planning, embracing a future where
personal goals and self-actualization are as important as traditional notions
of safety.
“While
the retirement became no. 1 priority, but readiness has declined. This is not a
setback but a sign of positive evolution. Indians are beginning to distinguish
between safeguarding against risks and actively building future for themselves.
With rising sense of surplus and families moving beyond simply providing for
children to planning for their own retirement, reflect a maturing mindset
focused on self-driven security and dignity. To truly close the gap between
aspiration and action, every stakeholder—investors, advisors, regulators, and
fund houses—must work together to create an inclusive, supportive ecosystem
that empowers individuals to take the next step. If we succeed, India will move
from heightened intent to a future where active retirement planning is the
norm,” said Abhishek Tiwari, CEO, PGIM India Asset Management Private
Limited.
“Having witnessed the
evolution of India’s financial landscape, I see this report as capturing a
dramatic shift in household priorities. For years, the average Indian pursued a
‘catch-all’ number with no specific goal. Now, rising affluence and the impact
of the pandemic have propelled specific, self-oriented goals like retirement
planning, lifestyle upgrades, and entrepreneurship to the forefront, running
parallel to traditional family-centric concerns. This marks a profound mental
evolution, from ‘it’s all about the family’ to also asking ‘what about me?’ As
financial planning grows more complex, the role of professional advice becomes
even more critical. While the rise of DIY investing is encouraging, I strongly
believe that even the most confident investors should seek a qualified
advisor’s second opinion. This not only stress-tests plans and eliminates
biases, but ensures that true preparedness is never left to chance, ” said Ajit
Menon, Senior Advisor, PGIM India Asset Management Private Limited.
“Our research
highlights that anxiety and negative emotions are far more prevalent among
those who have not planned for retirement, underscoring that financial wellness
is as much psychological as it is monetary. The gap between awareness and
action remains significant, with many Indians struggling to translate intent
into concrete steps. What stands out is the enduring collective mindset—Indians
continue to look to employers as anchors of stability. In this context,
employer-led programs can become default enablers, bridging the gap by offering
education, tools, and especially the flexibility to earn passive income. When
organizations step up to make financial wellness achievable, workplace-led
initiatives become true game-changers for retirement readiness across the
workforce,” said Dr. Sagneet Kaur, SVP – Behavioural Finance & Consumer
Insights, PGIM India Asset Management Private Limited.
The Retirement
Readiness Research Report 2025 brings clarity to the often overwhelming world
of retirement planning. For investors, the Retirement Readiness Research Report
2025 demystifies retirement planning, replacing abstraction and anxiety with
actionable insights, practical benchmarks, and real-life stories. By
highlighting the behavioural barriers and emotional realities that shape
financial decisions, the report empowers individuals to move from uncertainty
to informed action, making retirement planning a tangible and achievable goal.
For advisors and distributors, the report is a catalyst for deeper engagement, offering
behavioural insights and real-world data that enable more meaningful,
goal-based conversations and help clients stress-test their retirement
readiness against common biases. For employers and regulators, the findings
highlight the transformative potential of workplace-led financial wellness,
showing how education, tools, and flexibility to earn passive income and
policies around the same can behaviourally bridge the gap between intent and
action.
Download the
PGIM India Retirement Readiness Research Report 2025 here: https://www.pgimindia.com/Upload/2025-2026/December/PGIMIndias-Retirement-Readiness-Report-2025-Third-Edition.pdf
About PGIM India
Mutual Fund:
PGIM India Asset
Management is the full service investment manager of PGIM India Mutual Fund,
offering a broad range of equity and fixed income solutions to retail and
institutional investors throughout the country. PGIM India Mutual Fund is a
wholly owned business of PGIM, the global investment management business of the
US based Prudential Financial, Inc. (PFI). We manage 25 open-ended schemes as
of December 2025. In addition to managing our investors assets through domestic
Mutual Funds, we also offer Offshore Funds, Portfolio Management Services and
Alternatives. The fund house leverages the strength and stability of PGIM’s
150-year shared legacy to build on its decade long history in India.
Headquartered in
Mumbai, PGIM India Mutual Fund has a presence in 25 cities across the country
including branches in Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata
and Pune. PGIM India Mutual Fund brings a rich blend of global resources,
intellectual acumen and local investment expertise and is committed to
designing superior and meaningful, wealth-building solutions for our investors.
PGIM India provides unique training and educational programs for building
exceptional capabilities and best business practices for its business associates.
For more information, please visit https://www.pgimindia.com/mutual-funds/
About PGIM
PGIM is the global
asset management business of Prudential Financial, Inc. (NYSE: PRU), a leading global
investment manager with more than US$1.5 trillion in assets under management as
of 30/09/25. With offices in 19
countries, PGIM’s businesses offer a range of investment solutions for retail
and institutional investors around the world across a broad range of asset
classes, including public fixed income, private fixed income, fundamental
equity, quantitative equity, real estate and alternatives. For more information
about PGIM, https://www.pgim.com/
Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com
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Financial, Inc. (PFI) and its related entities. PGIM, the PGIM logo, and the
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