In a major shift, 2 in 3 Indian women are now actively saving and investing for retirement, leaving behind both the national average and men, as revealed by the fourth India Retirement Index Study (IRIS) by Max Life Insurance. This is a heartening change from earlier times when women were rarely part of retirement conversations, as they often depended on family for financial security.
Today, women are rewriting the narrative, taking charge of their futures with confidence and determination. This growing trend reflects their desire to be financially independent and secure a peaceful life in their later years, breaking away from old traditions and creating a new path for generations to come.
“Preparing for retirement is a critical priority for the future of Indians, especially as life expectancy rises with advancements in healthcare, emphasising the need for long-term financial planning. Notably, urban Indian working women are taking the lead in investments, actively securing their financial futures. These trends highlight a positive shift towards proactive retirement planning and financial independence among urban Indians,” said Prashant Tripathy, CEO & Managing Director, Max Life Insurance.
Key Findings from IRIS 4.0 Highlight Significant Progress in Women’s Retirement Planning
Retirement Ready
The Women’s Retirement Index climbed to 50, a notable rise from 47 in the previous edition. This places women ahead of both the men’s and the national average of 49. Supporting indices also showed growth: the Finance Index rose from 50 to 53, and the Health Index increased by 2 points to 47. Meanwhile, the Emotion Index remained steady at 59.
Shift Towards Risk-Based Investments
Women are increasingly favouring risk-based financial products, with more than 1 in 3 having invested in mutual funds/SIPs (27%) and the stock market (20%). The study highlights that 68% of women have invested in retirement products, surpassing the national (63%) and men’s (61%) averages. Other popular investment avenues include life insurance, health insurance, and fixed deposits, showcasing a diversified approach to retirement planning.
Prioritising Financial Independence
Financial independence during retirement emerged as the primary motivator for women’s investments. Maintaining their lifestyle and recommendations from family were also significant factors, with 46% of women citing advice from loved ones as a major influence. This demonstrates the vital role of community support in shaping women’s financial decisions.
Health and Emotional Well-Being
Health and wellness remain integral to women’s retirement plans. While only 4 in 10 women engage in regular physical activities, over 80% exercise at least three times a week. Nearly half (49%) have health insurance, and 82% feel optimistic about maintaining good health during retirement. On the emotional front, 73% associate retirement with positive aspects like independence and a stress-free life. However, concerns about loneliness and financial dependence persist.
Challenges and the Way Forward
Despite these advancements, barriers remain. Over half (55%) of women believe their financial investments may not last beyond a decade of retirement. Reliance on family wealth, children, and competing priorities hinder long-term planning. Yet, awareness is growing: 45% of women now recognise the importance of starting retirement investments before the age of 35, up from 39% in the previous edition.
The study emphasises the need for greater awareness and education around financial planning, particularly addressing inflation, rising medical costs, and environmental concerns like global warming.
The India Retirement Index Study, conducted annually by Max Life in partnership with KANTAR, delves into the retirement preparedness of urban India. KANTAR, a global leader in marketing data and analytics, collaborates on this survey to uncover insights into the awareness, aspirations, and challenges consumers face when planning for retirement.
The India Retirement Index measures how ready Indians feel for life after retirement, scoring on a scale of 0 to 100. It evaluates India’s preparedness for a healthy, peaceful, and financially independent retired life.
Mamta Sharma is a freelance journalist committed to sharing stories on talent management, DEIB, workplace culture alongside narratives on leadership, entrepreneurship, tech innovation and employee wellbeing.
