Indians are setting higher financial targets for their retirement, but the amount they believe they will need remains lower than the corpus suggested by their income levels and expected post-retirement expenses, according to the HDFC Pension NPS Preference Index Study 2026.
The study found that respondents now consider ₹1.5 crore to be the ideal retirement corpus, up from ₹1.34 crore in 2023. Despite the increase, the report highlighted a gap between the retirement savings people expect to need and the amount they may actually require after leaving the workforce.
Retirement Planning Remains a Major Financial Concern
Retirement planning continues to be an important financial priority for Indian consumers. It was cited by 34% of respondents, placing it behind medical expenses at 45%, emergency preparedness at 39% and children’s education at 35%.
Healthcare after retirement also emerged as a significant concern. Rising medical costs were identified by 47% of respondents, while 44% were worried about health problems and ageing. Another 36% pointed to inadequate savings after retirement as a key concern.
The findings also show that many Indians continue to expect support from their families. Around 69% of respondents said they expect some financial assistance from their family or children after retirement, suggesting that retirement finances are still not viewed entirely as an individual responsibility.
| Retirement Planning Indicator | 2023 | 2026 |
|---|---|---|
| Ideal retirement corpus | ₹1.34 crore | ₹1.50 crore |
| NPS Preference Index | 54 | 57 |
| NPS consideration | 53 | 59 |
| NPS familiarity | 55 | 58 |
| NPS appeal | 54 | 56 |
Source: HDFC Pension NPS Preference Index Study 2026
Interest in NPS Continues to Increase
The study found that awareness and interest in the National Pension System (NPS) have improved alongside the growing focus on retirement preparedness.
The NPS Preference Index climbed to 57 in 2026 from 54 in 2023. The index measures consumer familiarity, appeal and consideration of NPS on a scale of 0 to 100.
Among the three components, consideration recorded the largest increase, rising six points to 59. Familiarity increased to 58, while appeal reached 56.
According to the study, the improvement suggests that consumers are moving beyond simply being aware of NPS and are increasingly considering it as an option for retirement investment.
The index also varied across regions. North India recorded the highest score at 60, followed by East India at 58, South India at 57 and West India at 54.
NPS Changes Become a Key Reason for Consideration
Recent changes and enhancements to NPS emerged as the most commonly cited reason for considering the product. Around 39% of respondents identified product enhancements as a trigger, followed by tax savings at 38% and better returns at 36%.
However, certain concerns about NPS continue to remain. The lock-in period was identified as the biggest barrier by 26% of respondents, while 25% cited the mandatory annuity purchase requirement.
Interestingly, lack of knowledge has become less of a concern. It was the biggest barrier in the 2023 study but has now dropped to fifth place.
The HDFC Pension study was based on face-to-face interviews with 1,812 NPS-aware consumers across 13 Indian cities. The respondents were between 30 and 55 years of age and belonged to SEC-A households.
Disclaimer: The information in this article is based on findings from the HDFC Pension NPS Preference Index Study 2026 and is intended for general informational purposes. Retirement requirements and financial circumstances can differ from person to person. Readers should assess their own financial needs and seek advice from a qualified financial professional before making investment or retirement-planning decisions.