Retirement landscape in India
In this chapter: Demographic transition, dependency ratio · Sources of retirement income
India is ageing rapidly. The dependency ratio (older non-workers / working-age) will rise sharply over the next 30 years. Most Indians retire with inadequate savings — pension coverage is low (under 30% of workforce in formal pension systems). Retirement income comes from: pension/annuities, EPF/superannuation, personal investments, real estate income, family support.
India's formal pension stack: NPS (~25 million subscribers, growing), EPF/EPS (employees of larger formal-sector firms), older defined-benefit schemes (pre-2004 government), Atal Pension Yojana (lower-income workers, ₹1000-5000 monthly). Personal: PPF, equity-debt SIPs, real estate, gold. Most middle-class Indians under-save for retirement and over-rely on children/property. The "longevity gap" — life expectancy of 80+ vs retirement at 60 — means 20-year retirement funding is the new norm, not exception.
A practitioner insight: the "second retirement" phenomenon. Many Indians cease formal employment at 55-60 but continue some income (consulting, rental, family business) for years. This creates a phased retirement, not a binary one. Planning should account for this — partial drawdown in 60s, full drawdown in 70s+. The traditional "annuitise everything at 60" strategy is rarely optimal.