We are living longer. Across the globe, and particularly in India, advances in healthcare, improved sanitation, and greater health awareness have steadily pushed life expectancy upward. This is undeniably a triumph of modern medicine and public policy. However, living longer presents a unique, deeply personal challenge that economists and financial planners call the “Longevity Paradox.” Simply put, while we have successfully extended our lifespans, we are now facing the very real and terrifying risk of outliving our retirement savings.
According to Anurag Gupta, Chief Business Officer Partnership Channels Axis Max Life Insurance Limited, The scale of this challenge is brought into sharp focus by the fifth edition of the Axis Max Life India Retirement Index Study (IRIS 5.0), conducted in partnership with Kantar. The study reveals a sobering reality: India’s national retirement readiness score stands at a meagre 48 out of 100. While this represents a marginal improvement from previous years, it highlights a profound state of unreadiness. Beneath the surface of this average score lie the deep-seated anxieties of urban Indians who are staring into a financially uncertain future.
Even more pressured is the “Sandwich Generation.” These are middle-aged individuals caught in a financial vise, simultaneously supporting aging parents and financing the education and upbringing of dependent children. They bear a double burden of responsibility, and their own future is often sacrificed to meet immediate family needs. IRIS 5.0 shows that only 38% of this cohort believe their retirement fund will survive past 10 years. This emotional anxiety is directly tied to flawed financial behaviour, creating a cycle of worry and under-preparation.
The awareness is clearly there, but widespread inertia must be broken. Currently, 24% of urban Indians admit to having made absolutely zero progress toward saving for their golden years. Waiting until your 40s or 50s to begin saving drastically narrows your options. It forces you into a corner where you must either invest aggressively in high-risk assets or drastically lower your post-retirement lifestyle expectations.