2 out of 5 Indians say savings key goal of financial planning: Report

People older than 30 likely to save almost 25% of their monthly income and those younger save only 10-15%

More than 70 per cent of people earning more than Rs 50,000 monthly say they are “actively” saving, according to a survey on Indians financial practices.

As many as 51 per cent of those earning less than Rs 30,000 say they are making savings, said Moneyview’s report ‘Savings Index 2024’ report. The survey was conducted among 5,000 respondents of various income levels in Tier-I, Tier-II, and Tier-III cities. As many as two out of five respondents said saving is as a key financial goal. As many as 63 per cent of respondents said they make monthly saving.

Respondents older than 30 said they save almost 25 per cent of their monthly income and those younger saved 10-15 per cent.

Individuals earning less than Rs 25,000 allocate nearly half of their total income for household expenses, a quarter to pay loan installments and 10 per cent for savings and investments. Those earning more than Rs 25,000 spend 35 per cent on household expenses, 15 per cent on loan installments and between 25 per cent to 35 per cent for savings and investments.

Around 75 per cent of respondents had specific saving goals, with future property acquisition ranking highest at 21 per cent, followed by education, emergency funds, marriage expenses, and children’s education.

Lower-income groups opt for safer options like savings accounts and those who have higher incomes favoured fixed deposits, insurance, and mutual funds.

"The findings underscore the importance of savings in achieving financial security and realising personal aspirations. As we observe diverse saving behaviour across income groups and demographics, it's evident that tailored financial solutions are essential to meet the evolving needs of the consumers," said Prasanth Naidu, chief marketing officer of Moneyview.