Indians raise retirement corpus target to ₹1.5 crore, but still underestimate their needs

Indians are raising the amount they believe they will need for retirement. Still, their perceived target remains below the level suggested by their income and expected post-retirement requirements, according to the HDFC Pension NPS Preference Index Study 2026.

The study found that the ideal retirement corpus estimated by respondents has increased to ₹1.5 crore, from ₹1.34 crore in 2023. However, the report said the ₹1.5-crore target remains below the suggested retirement corpus, highlighting a gap between what Indians think they will need and what they may actually require.

Retirement planning remains a priority

The findings come as retirement planning continues to feature among Indians’ key financial priorities. It ranked at 34%, behind medical expenses at 45%, emergency preparedness at 39% and children’s education at 35%.

The study also showed that post-retirement healthcare is a major concern. Rising healthcare costs were cited by 47% of respondents, while 44% were concerned about health issues and ageing. Another 36% cited insufficient post-retirement savings as a concern.

The reliance on family remains significant. About 69% of respondents said they expect some financial support from their family or children after retirement, indicating that retirement planning is not yet entirely viewed as an individual financial responsibility.

Source: HDFC Pension NPS Preference Index Study 2026

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NPS consideration is rising

The gap in retirement preparedness comes even as interest in the National Pension System (NPS) is increasing.

The NPS Preference Index rose to 57 in 2026 from 54 in 2023. The index measures familiarity, appeal and consideration of NPS on a 0–100 scale.

Consideration recorded the biggest improvement, rising six points to 59, while familiarity increased to 58 and appeal to 56. The study said this indicates that consumers are moving beyond simply knowing about NPS and are increasingly evaluating it as a retirement investment option.

There were also regional differences. North India recorded the highest index score at 60, followed by East at 58, South at 57 and West at 54.

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NPS changes gain traction

Recent changes to NPS have emerged as the biggest trigger for considering the product. 39% of respondents cited recent product enhancements, ahead of tax savings at 38% and better returns at 36%.

At the same time, some product-related concerns persist. Lock-in was the biggest barrier at 26%, followed by the mandatory annuity purchase requirement at 25%. Lack of knowledge, which was the biggest barrier in the 2023 study, has now fallen to fifth place.

The study was based on face-to-face interviews with 1,812 NPS-aware consumers across 13 Indian cities, covering 30–55-year-old consumers from SEC-A households.

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