Ask any working professional in their 30s or 40s about retirement, and the answer comes almost instantly. “I’ll retire by 60.” Some say 55. A few even dream of 50.
But beneath this confidence lies a growing reality that many Indians are uncomfortable acknowledging — most people will work longer than they plan to, not by choice, but by necessity. Retirement, as traditionally imagined, is slowly turning into a myth.
This shift is not accidental. It is the result of longer life spans, rising costs, late financial starts, and changing family structures. Together, they are reshaping what retirement truly looks like in modern India.
Idea of retirement vs. Today’s reality
For decades, retirement followed a predictable script. You worked for 30 to 35 years, saved through provident funds, gratuity, and fixed deposits, and then slowed down after 60. Expenses reduced, family support was available, and medical costs were manageable.
That script no longer fits today’s India. Families are nuclear, children live in different cities or countries, jobs are less secure, and healthcare has become one of the biggest expenses in later life.
As a result, the question has changed. It is no longer “When will I retire?” but “Will I be financially prepared to retire when I want to?”
Longevity has changed the math
Life expectancy in India has steadily increased. A person retiring at 60 today may easily live till 85 or beyond. That means funding 25 to 30 years of post-retirement life — almost as long as an entire working career.
However, most retirement planning still assumes a much shorter retirement period. Many people mentally budget for 10 to 15 years, not realising that longevity multiplies the financial requirement.
A longer life without adequate planning turns retirement from a reward into a financial risk.
Silent enemy: Healthcare inflation
Healthcare inflation in India is rising faster than general inflation. While daily expenses may be manageable, a single medical emergency can derail years of planning.
Lifestyle diseases, chronic conditions, regular medications, and hospitalisation costs add continuous pressure on post-retirement finances. Unlike earlier generations, retirees today cannot assume that family will always step in to manage medical needs.
Financial independence in healthcare is no longer optional — it is essential for dignity and peace of mind.
Real-life example
Ramesh, a 62-year-old former senior manager in a manufacturing company, planned to retire at 60. He had accumulated a provident fund corpus, maintained fixed deposits, and invested modestly in equity funds.
Initially, retirement felt comfortable. But within two years, rising medical expenses, inflation, and the need to support an adult child during a career transition began to strain his finances.
Today, Ramesh works as a part-time consultant. Not because he enjoys staying busy, but because his savings are insufficient to maintain independence without additional income.
His story reflects a growing reality among Indian retirees — working longer is often a necessity, not a choice.
Late starts, big consequences
One of the biggest reasons retirement plans fall short is delay. Many Indians begin serious retirement investing only in their late 30s or 40s, after buying a home, raising children, and upgrading lifestyles.
The lost years of compounding cannot be recovered. Someone who starts investing for retirement at 25 needs to save far less than someone who starts at 40 to reach the same outcome.
Time is the most powerful ally in retirement planning — and the most expensive mistake when ignored.
Illusion of ‘I’ll Manage Somehow’
There is a deeply rooted belief that things will somehow work out. Many assume expenses will fall after retirement, children will provide support, or fixed income will be enough.
These assumptions are risky. Expenses rarely fall meaningfully. Children face their own financial pressures. And fixed income instruments often fail to beat inflation over long periods.
Hope may offer comfort, but it is not a retirement strategy.
Why most Indians will work longer than planned
Several forces are pushing Indians to extend their working years:
Inadequate retirement corpus due to late or insufficient investing
Rising cost of living and healthcare inflation
Absence of pension-style income for most private-sector employees
Fear of outliving savings in a longer retirement phase
Desire to remain financially independent and avoid burdening family
Working longer is not inherently negative. The problem arises when working longer becomes compulsory rather than optional.
Redefining retirement
Retirement today does not necessarily mean complete inactivity. It means financial flexibility.
A well-planned retirement allows individuals to work because they want to, not because they have to. It provides the freedom to pursue part-time roles, consulting, or passion projects without financial stress.
The goal is not early retirement. The goal is prepared retirement.
What to do differently
To break the retirement myth, a shift in mindset and action is required:
Start early and invest consistently to harness the power of compounding
Maintain adequate equity exposure to beat inflation over long periods
Plan explicitly for healthcare through insurance and medical contingency funds
Focus on retirement income generation, not just corpus accumulation
Review and adjust retirement plans periodically as life circumstances change
Final thought
There is nothing wrong with working beyond 60 if it is driven by passion, purpose, or choice.
But being forced to work because planning fell short can be emotionally and financially exhausting.
The true success of retirement is not stopping work early. It is knowing that you can stop when you want to.
That freedom is built quietly, patiently, over decades — starting today.
(Viral Bhatt is the Founder of Money Mantra, a personal finance solutions firm)
