Summary of this article
Gen Z prioritises home ownership, while Gen X focuses on retirement.
Mutual funds and fixed deposits lead investment preferences among Indians.
87 per cent would save, invest or repay debt with windfalls.
For many young earners in India, buying a home is a bigger priority than planning for retirement. Older savers, however, are more focused on building a retirement fund. While 26 per cent of Gen Z respondents put home ownership at the top of their financial goals, 35 per cent of Gen X respondents prioritise retirement, according to a study by Stable Money and YouGov.
The report, How India Saves 2026: Inside the Habits, Goals and Choices of the Indian Saver, has found that 83 per cent of adults save or invest, and 80 per cent of savers use digital platforms to manage their money. It also looks at when Indians start saving, their preferred investment options and who makes financial decisions at home.
Most Indians Start Saving Before 30
The survey found that 65 per cent began saving or investing by the age of 30. Around 39 per cent started between 18 and 25 years. Another 26 per cent began between 26 and 30.
The share rises to 82 per cent among those who started by the age of 35. Only about one in 10 respondents began saving or investing after turning 40.
Women Play A Key Role In Household Money Decisions
Around 56 per cent primarily make household financial decisions themselves; another 23 per cent take these decisions jointly with their spouse or partner.
Among women respondents, 46 per cent manage household financial decisions on their own, and 29 per cent make these choices jointly with their partners. Only 11 per cent of all respondents leave these decisions to their spouse or partner.
Mutual Funds And Fixed Deposits Top Investment Choices
Mutual funds (MFs) and bank fixed deposits (FDs) are the most preferred investment options among respondents. Around 23 per cent picked mutual funds as their first choice, and 21 per cent preferred bank FDs and recurring deposits (RDs).
When asked to name their top three investment choices, 57 per cent included MFs and 56 per cent selected bank FDs and RDs. Gold and silver ranked next, with 45 per cent.
Among fixed-income products, bank FDs and RDs were the most popular. They featured in the top three choices of 56 per cent, compared with 20 per cent for the Public Provident Fund (PPF), 19 per cent for government bonds and 7 per cent for corporate bonds.
Gen Z Wants A Home, Gen X Focuses On Retirement
Around 26 per cent of Gen Z respondents identified buying a home as their main financial goal. For Gen X, retirement planning was the top priority, with 35 per cent choosing it. Among Gen Z, retirement ranked fourth, behind home ownership, emergency savings and travel.
Most Would Save Or Invest Unexpected Money
The survey has found that 87 per cent would save, invest or repay debt if they received an unexpected lump sum. Around 32 per cent would invest in options such as equities and MFs; 25 per cent would choose fixed-income products. Another 19 per cent would put the money in a savings account, and 11 per cent would use it to reduce debt.
Only 13 per cent would spend the money on travel, experiences or luxury purchases.
Bond Investing Finds Takers Beyond Metros
Bond investment participation was almost the same in Tier-1 and Tier-2 cities. Around 45 per cent in Tier-1 cities invest in bonds, compared with 46 per cent in Tier-2 cities. Overall, 41 per cent invest in bonds, and another 45 per cent are interested in them. However, 14 per cent are unsure about what bonds are.
