Are the Days of Retiring at 60 Over? Survey Reveals Young Indians Aim to Retire Early

43% of youth under 25 want to retire by 55 but their savings habits may not support that dream.

The traditional idea of retiring at 60 may soon be outdated. A new report by Grant Thornton India has revealed that 43% of Indian youth under the age of 25 aspire to retire between 45 and 55 years, signaling a shift in how the younger generation views work and life.

In India, the official retirement age ranges between 60 and 65 in government services and up to 60 in the private sector. However, a growing desire for early retirement is now reshaping the landscape, especially among young professionals just entering the workforce.

Ambitious Goals, But Unprepared Finances

While the dream of an early retirement is strong, financial readiness tells a different story. The survey found that:

• 75% of respondents contribute only 1–15% of their income towards retirement savings.
• 56% of high-income earners (above ₹20 lakh annually) still invest conservatively in pensions.
• 30% of them expect a monthly pension of over ₹2 lakh, highlighting a gap between expectation and preparation.

This growing aspirational mismatch was flagged as a concern by the report, which warned of a potential retirement planning crisis in the coming decades.

Low Awareness, Limited Satisfaction

The study also uncovered significant gaps in financial literacy and awareness:

• 50% were unaware of the Atal Pension Yojana (APY).
• 30% didn’t understand how their pension amount is calculated.
• Only 32% were satisfied with the performance of the National Pension System (NPS).
• Despite EPF being the most trusted option, less than half were satisfied with its returns.

Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat, stated:

“As India’s working population grows, the gap between expected retirement needs and actual savings is widening. A strong and inclusive pension system is needed to bridge this divide.”

The Road Ahead

While early retirement dreams reflect a desire for freedom, better work-life balance, and mental well-being, experts caution that without adequate planning and awareness, many young Indians may face financial insecurity in their later years.

The report calls for enhanced pension planning, greater public awareness, and more robust investment mechanisms that can support early retirement goals without compromising long-term financial stability.