A 2026 survey by Finnovate of 1,218 individuals across more than 20 Indian cities found that 75.5 percent of respondents did not have a detailed retirement plan. Many people struggle because they lack clear goals or track too many funds. Experts said, "Start early and give your investments a clear direction."
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Retirement planning is often viewed as simply accumulating a corpus. But is that always enough? Some professionals with substantial earnings still struggle to build a retirement corpus that meets their needs, while others lack a clear picture of their investments because they don't track them systematically. A 2026 survey by Finnovate of 1,218 individuals across more than 20 Indian cities found that 75.5 percent of respondents did not have a detailed retirement plan.
Take the example of Vikrant (name changed), a 40-year-old sales professional earning Rs 35 lakh annually. He had clear goals of retiring early, by age 50, and funding his child's education. However, his investment portfolio had grown to include 43 different mutual fund schemes over 15 years. While he had been investing with retirement in mind, the large number of funds made it difficult to assess whether his portfolio was aligned with his goals.
On the other hand, Leena, a 50-year-old gemologist approaching retirement, had accumulated substantial savings. However, more than Rs 1.5 crore was lying idle across her family's accounts. She had also invested primarily in traditional financial products, some of which struggled to beat inflation. Although she had built a sizeable corpus, a more structured investment approach could have helped her put her savings to better use.
These examples highlight two common challenges in retirement planning:
Losing track of investments: Accumulating too many funds without regular reviews can lead to overlapping investments and make it difficult to assess whether the portfolio is aligned with retirement goals.
Lack of clarity on financial goals: Without a defined retirement timeline, target corpus and investment strategy, it becomes difficult to know whether savings will be sufficient. So, how can investors make retirement planning a meaningful part of their investment journey?
Start early and give your investments a clear direction
One of the biggest advantages of starting early is time. The longer money remains invested, the greater its potential to grow through compounding.
For example, if two investors each invest Rs 10,000 every month at an assumed annual return of 12 percent, one starting at age 25 and the other at 35, the first could accumulate approximately Rs 6.43 crore by age 60, compared with Rs 1.88 crore for the second. These are illustrative figures based on monthly compounding, but they show how delaying retirement planning can increase the savings required later.
It is equally important to identify the goals your investments need to support during retirement. Do you want to maintain your current lifestyle, travel extensively or meet financial responsibilities such as your child's education or marriage? Defining these goals can help determine how much you need to save and invest.
Always account for inflation
Your retirement target cannot be based only on what you spend today. Inflation gradually reduces purchasing power, meaning the same lifestyle can cost considerably more in the future.
For instance, if a household spends Rs 75,000 a month today and inflation averages 6 percent for 25 years, the equivalent expense could be around Rs 3.22 lakh a month at retirement. NISM also identifies inflation as one of the key risks retirement planning needs to address.
Healthcare and longevity matter
Retirement planning also needs to account for expenses that may increase with age, particularly healthcare. Health insurance can provide protection, but policy terms, waiting periods, exclusions and out-of-pocket costs also need to be considered.
Longevity is another important factor. A retirement corpus may need to support several decades of expenses. Planning only up to a fixed age could therefore leave a significant gap. NISM identifies longevity, inflation and sequence-of-returns risk among the key risks retirees need to consider.
Review your retirement plans regularly
Retirement planning is not a one-time investment decision. Your income, expenses, family responsibilities, retirement age, health and portfolio can change over time.
Regular reviews can help determine whether you are still on track and whether your savings, asset allocation or retirement timeline need to be adjusted.
Building the corpus is only half the journey
Reaching your retirement corpus target is not the end of the plan. You also need to decide how that money will support your expenses after retirement.
This makes the withdrawal strategy important. Poor investment returns during the early years of retirement, combined with regular withdrawals, can increase the risk of depleting the portfolio.
Ultimately, retirement planning is about more than reaching a number. It is about creating a financial plan that can support your lifestyle, prepare for uncertainties and provide financial independence throughout your retirement years.