Retirement savings of Indians drop this year from 45 percent in 2022 to 38 percent in 2023, with women comprising the biggest numbers who cut back on their plans for other goals, according to a survey by online financial services marketplace Bankbazaar.com. Retirement Savings Drop In India in 2023 due to a sharp decline in women’s participation. 

The “How India Saves: Dwindling Retirement Planning” survey shows that women’s savings and investing dropped 34.3 percent in 2023 from 48.45 percent last year. However, the number is roughly the same for men at 40.1 percent in 2023 compared to 41.86 percent last year, suggesting men continue to prioritize their retirement planning.

Not only did the retirement savings of Indians drop as per the survey but the data also throws light into age-specific savings patterns. For instance, it shows that serious retirement saving usually starts between the late 20s and early 30s.

Regarding retirement savings, the survey shows that nearly 9 percent of respondents aim at a corpus of Rs. 50-Rs.75 lakh in 2023, closely followed by another 8 percent planning a retirement corpus of Rs.75 lakh-Rs. 1 crore.

In both the corpus bands, the number of people aiming at these financial targets dropped considerably from last year’s percentage at 18 percent and 17 percent, respectively.

The study covered 1,675 working professionals aged 22-45 from six metros and more than 18 Tier 2 cities in India. Of those interviewed, 43 percent were women and 57 percent were men.

Women’s Participation In Retirement Planning

In the case of women, the survey finds a reversing trend in retirement planning.

The number of women working towards retirement planning dropped by 11 percent to 57 percent in 2023 compared to 2022, at 68 percent. In contrast, the number of men working towards a retirement corpus rose marginally from 54 percent to 55 percent this year.

The study also finds that the percentage of women without a retirement corpus has risen considerably from 32 percent in 2022 to 43 percent in 2023. In the case of men, this figure dropped to 45 percent in 2023 from 46 percent in 2022.

Age-Wise Retirement Corpus Target

Women aged 28-34, or the MoneyMooners, comprised the largest segment working towards a retirement corpus of Rs. 50–75 lakh at 22 percent. 

Also, early jobbers, aged 22-27 years, and MoneyMooners, comprising 7 and 13 percent, respectively, were aiming at a corpus of Rs.1.5–2 crore compared to men in the corresponding cohorts, early jobbers at 6 percent & MoneyMooners and 9 percent.

Furthermore, 67 percent of the respondents, across three age groups: early jobbers, MoneyMooners, and wealth warriors (35-45 years), said they chose savings bank accounts as an essential financial product for retirement planning, followed by fixed deposits and mutual funds at 57 percent. Further, data shows that the reliance on savings bank accounts as a retirement savings instrument across age cohorts and regions only varied marginally.