A new study from HDFC Pension reveals that while Indians are raising their financial targets for retirement, their perceived needs still fall short of the actual funds likely required. The HDFC Pension NPS Preference Index Study 2026 found that the ideal retirement corpus estimated by respondents has increased to ₹1.5 crore, up from ₹1.34 crore in 2023.
Despite this increase, the report highlights a persistent gap between what individuals believe they will need and their actual post-retirement requirements. This suggests many Indians may be underestimating the financial demands of their golden years.
Understanding the Retirement Savings Gap
Retirement planning continues to be a significant financial priority for Indians, ranking at 34% among other concerns. However, it trails behind more immediate worries such as medical expenses (45%), emergency preparedness (39%), and children's education (35%).
Post-retirement healthcare costs emerged as a major concern, cited by 47% of respondents. Additionally, 44% expressed apprehension about health issues and ageing, while 36% worried about having insufficient savings. A notable finding was the continued reliance on family, with approximately 69% of respondents expecting some financial support from their children or other family members after retirement, indicating that individual financial independence in retirement is not yet a universal expectation.
Growing Interest in National Pension System (NPS)
The study also tracked increasing interest in the National Pension System (NPS). The NPS Preference Index, which measures familiarity, appeal, and consideration, rose to 57 in 2026 from 54 in 2023. Consideration for NPS saw the biggest improvement, increasing six points to 59, while familiarity reached 58 and appeal stood at 56. This trend suggests that more consumers are moving beyond basic awareness and actively evaluating NPS as a viable retirement investment option.
Regional Trends and Adoption Triggers
Regionally, North India recorded the highest NPS Preference Index score at 60, followed by the East at 58, South at 57, and West at 54. Recent enhancements to NPS products were identified as the biggest trigger for considering the scheme (39%), surpassing tax savings (38%) and better returns (36%).
However, certain product-related concerns persist. The lock-in period was cited as the biggest barrier by 26% of respondents, followed by the mandatory annuity purchase requirement at 25%. Interestingly, a lack of knowledge, which was the primary barrier in the 2023 study, has now fallen significantly.
The HDFC Pension NPS Preference Index Study 2026 was based on face-to-face interviews with 1,812 NPS-aware consumers aged 30-55, from SEC-A households across 13 Indian cities.