A growing gap between financial awareness and actual planning is leaving many Indian households vulnerable in their retirement years, according to insights drawn from the India Retirement Index Study (IRIS) 5.0. Despite widespread familiarity with financial products and investment tools, experts warn that most Indians continue to treat retirement planning as a non-urgent priority, creating what is described as an “Awareness–Action Divide.”
The report highlights behavioural patterns such as optimism bias and dependency bias, where individuals rely on future windfalls or family support, even as traditional joint family structures decline. Inaction bias further delays decision-making, with many waiting for the “perfect time” to begin saving.
The data underscores the growing impact of inflation, with monthly expenses of ₹50,000 today projected to rise to nearly ₹2.87 lakh over 30 years. While India’s retirement index score has improved to 46, the financial preparedness pillar remains weak, indicating that savings are insufficient to counter long-term inflation.
Healthcare costs, rising faster than general inflation, have added urgency to retirement planning, shifting focus from income replacement to medical security. The study also flags the “liquidity trap,” where retirees remain asset-rich but cash-poor due to investments in gold or land that fail to provide regular income.
In Guwahati, there is a gradual shift in investor behaviour, with rising interest in annuity and pension products. However, traditional preferences for physical assets continue to dominate, indicating that deeper financial engagement and product ownership are still evolving in the region.