Despite Financial Planning, Indians Feel Unprepared For Future, Survey Finds

A study by YouGov, an Internet-based market research and data analytics firm, revealed that more than half of Indians feel unprepared for their future, even though many have a detailed financial plan or have done some degree of financial preparation. 

This anxiety is particularly prevalent among individuals in the age group of 35 to 54 years who are financially responsible for both their aging parents and growing children.

Widespread Concern Over Insufficient Savings

The study, conducted by YouGov, found that 60 per cent of respondents in this demographic believe their savings will not be enough for the future. Despite their efforts to save and invest, many report that it always feels like there is never enough. This sentiment reflects a deeper financial insecurity, with individuals expressing concerns about their long-term economic well-being.

High Levels Of Financial Planning, Yet Persistent Worry

Although 94 per cent of respondents indicated they either have a detailed financial plan or have engaged in some level of financial planning, more than half are still deeply worried.

The study, which surveyed over 4,000 individuals across 12 cities in India, revealed that over 50 per cent of participants are anxious about running out of money, feeling perpetually behind, or not doing well enough despite their efforts.

Over-Reliance On Credit And Savings To Meet Short-Term Needs

The study highlights a concerning trend in financial behavior, showing that 64 per cent of respondents fund their short-term goals through credit. Additionally, 49 per cent rely on their savings, and 47 per cent use their regular income to meet these immediate needs. This suggests a high reliance on credit, and that many are tapping into both savings and income to cover basic expenses and desires.

Credit Use Extends To Both Essentials And Luxuries

In order to meet both critical needs (like healthcare and education) and wants (such as vacations or home renovations), respondents have resorted to using credit. This pattern illustrates how financial pressure extends beyond the basics and into discretionary spending, further straining their financial security.

Long-Term Financial Goals At Risk

The study also revealed that respondents’ long-term financial aspirations are vulnerable, with 79 per cent expecting to fund these goals through returns or gains from financial instruments. This reliance on uncertain returns highlights the fragility of their long-term financial planning, as they are dependent on market conditions and investment outcomes.