Retirement planning is increasingly moving from intention to action, with purchases rising more than 50% in September 2026 compared with April 2026, according to Policybazaar. The growth points to a shift in consumer behaviour, with more people starting early, opting for regular contributions and prioritising long-term financial security during their working years.
The trend extends across age groups, income brackets and geographies. Consumers aged 26–50 account for 75.5% of purchases while Tier II and Tier III cities together contribute 60%. Consumers earning below ₹5 lakh annually account for 35% of purchases, matching the share of those earning above ₹10 lakh.
The most key behavioural shift is towards systematic savings. The share of customers choosing monthly contributions has doubled from around 40% in January 2026 to 80% in September, indicating a growing preference for integrating retirement savings into regular household budgets.
Retirement planning gains ground among younger consumers
Consumers aged 26–50 account for 75.5% of purchases on Pensionbazaar, with those aged 36–50 contributing 38% and the 26–35 age group accounting for 37.5%. Another 16% of buyers are aged 25 or below, suggesting that retirement planning is beginning well before consumers approach the later stages of their careers.
Those aged 51–60 account for 8% of purchases, while consumers above 60 contribute just 0.5%.
Starting early allows individuals to spread their investments over a longer period, potentially reducing the monthly contribution required to build a retirement corpus. The data suggests that retirement planning is increasingly becoming part of financial decisions made alongside other goals, such as buying a home, funding children's education and building wealth.
Participation broadens across income groups
Consumers earning below ₹5 lakh annually account for 35% of purchases, the same share as those earning above ₹10 lakh. Another 30% fall in the ₹5–10 lakh income bracket.
The distribution indicates that retirement planning is not restricted to higher-income households with substantial investible surpluses. Smaller, recurring contributions could make long-term savings more manageable for consumers with limited disposable income.
Geographically, Tier II cities account for 35% of purchases and Tier III cities for 25%, taking their combined share to 60%. Tier I cities contribute the remaining 40%.
The growing contribution from smaller cities highlights the potential of digital platforms to expand access to retirement products beyond established financial centres, allowing consumers to explore and purchase products without depending entirely on physical distribution networks.
Monthly contributions emerge as preferred option
Monthly contributions accounted for 80% of purchases in September, up from approximately 40% in January 2026. Annual contributions and lump-sum payments together made up the remaining 20%, compared with around 60% in January. The shift suggests that consumers increasingly prefer a disciplined, cash-flow-linked approach to retirement savings rather than making occasional investments.
A monthly contribution model can help break down a long-term financial goal into manageable payments. It also allows consumers to build a regular savings habit during their prime earning years, although the eventual retirement corpus will depend on contribution amounts, investment returns and the time horizon.
Salaried individuals account for 65% of purchases, while self-employed consumers contribute 30%. Homemakers account for the remaining 5%.
The self-employed share is notable because these individuals may not have access to employer-linked retirement benefits and often need to build their retirement savings independently. Their participation points to the growing importance of individual financial preparedness across employment categories.
Women, however, remain underrepresented, accounting for 15% of purchases compared with 85% for men. The gap highlights the scope to expand retirement planning among women as financial independence and the need for dedicated retirement savings gain prominence.
Regular retirement plans account for 90% of purchases, while child-focused plans make up the remaining 10%, indicating that most buyers are prioritising their own long-term financial security.
Vishwajeet Goel, head of Pensionbazaar, said retirement planning was increasingly moving from a distant, end-of-career consideration to a financial habit built during the prime earning years. “What stands out is not just that consumers are starting earlier, but also how they are planning, with monthly contributions becoming the preferred approach,” Goel said, adding that participation across income groups and smaller cities indicated a broadening of retirement awareness.