Indian millennials are financially prudent: Survey

  • Amid the encouraging habits toward financial prudence, Indian millennials are yet to become fully aware of and understand solutions such as life and health insurance

Livemint
Published30 Mar 2022, 09:16 AM IST
While ensuring a healthy savings ratio, Indian millennials across age bands believe in planning their own investments rather than depending on others.. Photo: iStock
While ensuring a healthy savings ratio, Indian millennials across age bands believe in planning their own investments rather than depending on others.. Photo: iStock

Indian millennials seem to have realized the importance of following a healthy savings regime even as the external scenario remains uncertain and ever-changing, according to the key findings of a survey by Tata AIA Life Insurance. The survey covered 1,000 respondents in the age group of 22–35 years.

Even as covid-19 impacted the country and the world in recurring waves, more than 64% of the respondents in the age group either maintained or increased their savings during the pandemic. While 70% of those in the age group 30–35 increased or maintained the proportion of savings, 68% of those in the 22–25 years age band displayed similar behaviour. This indicates that people are showing responsible financial behaviour from an early age.

While ensuring a healthy savings ratio, Indian millennials across age bands believe in planning their own investments rather than depending on others. This shows their level of confidence in themselves. Given their comfort in accessing online platforms and researching the entire process, this trend is poised to continue in the future. It was only in the youngest age band within millennials i.e., 22–25 years wherein one in five respondents showed dependency on their parents in deciding on the right financial investment. On the other hand, 90% of those in 26–29 and 96% of those in 30–35 took their own decisions when it came to financial planning and investing.

When one looks at the geographical differences, the findings are not surprising. Those in metros did show a higher level of independence with 93% taking their own decision regarding financial planning. This behaviour was marginally lower for those in Tier 1 and 2 towns with 89% taking their own financial decisions. Interestingly, a small percentage of respondents in metro and tier 1 cities relied on financial experts whereas those in tier 2 relied completely on their parents when not taking their own decision regarding putting their hard-earned savings into the right instrument.

Amid the encouraging habits toward financial prudence, Indian millennials are yet to become fully aware of and understand solutions such as life and health insurance. While 57% of those in the 30–35 age group were aware of life insurance, only 20% among the 22 – 25 years affirmed this aspect. Similarly, when it came to health insurance, 57% between 30–35 years were aware of the category but only 19% responded in positive among the 22–25 years age band.

Among those who had secured themselves with life insurance, 43% believed they were adequately protected. However, a similar 41% felt the other way, being unsure if they had taken a policy with sufficient cover. This clearly indicates the need to equip Indian Millennials with the right information and understanding of the level of insurance required as they move through different life stages.

 

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First Published:30 Mar 2022, 09:16 AM IST
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