The cost of living in Pakistan has increased significantly as compared to the early 2000s. Inflation had been on the rise until it faced a slight dip in 2025. Even with the rise in job opportunities due to growing e-commerce and technological advancement, the decrease in the purchasing power of the rupee has made it difficult for people to have a secure source of income once they reach the age of retirement. Economic volatility further creates a lot of problems if a person has not done proper retirement planning.

Why people are not inclined towards retirement planning becomes a prime question for anyone exploring the topic of retirement planning. According to a Dawn report, around 65 million Pakistani workers are not registered in any pension scheme at all and face a demeaning and despondent old age with zero pension.

There could be multiple reasons for people not opting for retirement savings. Primarily, cultural norms are a hindrance in the way of retirement planning. For instance, cultural and societal reliance on family support is preferred over personal savings.

Moreover, there seems to be a general mistrust in non-Islamic financial institutions and investment products, which keeps people from investing for their future consumption. Furthermore, there is a lack of financial literacy and awareness........

© Dawn Business