We present RAFTformer, a real-time action forecasting transformer for latency aware real-world action forecasting applications. RAFTformer is a two-stage fully transformer based architecture which consists of a video transformer backbone that operates on high resolution, short range clips and a head transformer encoder that temporally aggregates information from multiple short range clips to span a long-term horizon. Additionally, we propose a self-supervised shuffled causal masking scheme to improve model generalization during training. Finally, we also propose a real-time evaluation setting that directly couples model inference latency to overall forecasting performance and brings forth an hitherto overlooked trade-off between latency and action forecasting performance. Our parsimonious network design facilitates RAFTformer inference latency to be 9x smaller than prior works at the same forecasting accuracy. Owing to its two-staged design, RAFTformer uses 94% less training compute and 90% lesser training parameters to outperform prior state-of-the-art baselines by 4.9 points on EGTEA Gaze+ and by 1.4 points on EPIC-Kitchens-100 dataset, as measured by Top-5 recall (T5R) in the offline setting. In the real-time setting, RAFTformer outperforms prior works by an even greater margin of upto 4.4 T5R points on the EPIC-Kitchens-100 dataset. Project Webpage: https://karttikeya.github.io/publication/RAFTformer/