According to a DSP Pension Fund analysis, India's retirement savings gap—the difference between what retirees need and have—is expanding at a 10% yearly rate and is expected to reach $96 trillion by 2050.

A retirement catastrophe is quietly growing in India. With pension assets accounting for barely 3% of GDP, the country falls far behind wealthy countries such as Japan (31%), and the United States (98%). For most Indians, this means one thing: the state will not take care of you in your old age; you must do so yourself.

"Most Indians cannot rely on structured pension systems and will need to fund their own retirement," writes Mumbai-based retirement adviser Milind Deogaonkar on LinkedIn. "Which is why personal retirement planning is more critical than ever."

According to a DSP Pension Fund analysis, India's retirement savings gap—the difference between what retirees need and have—is expanding at a 10% yearly rate and is expected to reach $96 trillion by 2050. In contrast to countries with extensive pension coverage, Indian retirees face an uphill battle, frequently having to rely on personal savings, family, or continuous employment.

The gaps are structural. "India's pension market remains underdeveloped because most people either don't have access to formal pension schemes or are unaware of their importance," Deogaonkar says. The Economic Survey echoes this, stating that only 12% of India's workforce is covered by a formal retirement savings plan.

He also discusses how cultural assumptions have contrasted with changing reality. "Traditionally, Indian retirees have depended on their children for financial and emotional support," he says. "But changing family structures are disrupting this pattern." With nuclear families and urban migration becoming the norm, many elderly parents are losing access to the support structures they traditionally relied on.

A lack of awareness worsens the situation. According to Deogaonkar, many people misjudge how much money they will require after retirement. Medical expenses, rising inflation, and longer lifespans can deplete even large funds. "Yet most Indians don't plan for these expenses until it's too late," he says.

The message is clear: whether you are in your thirties, forties, or fifties, the time to plan is now. "A person retiring at 60 today might need to fund 25-30 years of living expenses," Deogaonkar adds. "Without a well-structured pension plan or investing strategy, the money may run out long before you do."