88% of Indians anticipate financial uncertainty over next 5 years: Survey

As many as 88 per cent of Indians expect financial uncertainty over the next five years and many are taking "proactive steps" to secure themselves, said a survey by a life insurance company on Wednesday.

 

A little more than 35 per cent respondents cited job loss would be their worst financial uncertainty, according to Aditya Birla Sun Life Insurance Company's (ABSLI) ‘A-Nishchit Index 2024’ survey of 7,978 people. As many as 33.95 per cent of respondents said they worry about the impact of technological advancements, particularly in artificial intelligence, on work.

 

Proactive financial safeguards

 

Minding such uncertainties, 76.57 per cent of respondents reported having insurance policies as a financial safeguard. Almost 70 per cent maintain savings accounts for emergencies, and 49 per cent have invested in fixed deposits. A noteworthy 34.87 per cent of participants admitted they do not engage in financial planning and rely on professional guidance instead.

 

“The A-Nishchit Index 2024 underscores the widespread concern among Indians about their financial future. With 88 per cent of respondents anticipating significant financial uncertainty, it’s clear that many are feeling the pressure of today’s volatile environment,” said Kamlesh Rao, managing director and chief executive officer, Aditya Birla Sun Life Insurance Company Limited.

 

Survey's key findings

 

- 83 per cent of respondents believe that financial planning is essential

 

- 77 per cent prefer steady investments like bank fixed deposits

 

40 per cent are drawn to high-risk, high-return options

 

72 per cent diversify their investments into traditional assets like gold and real estate

 

- 68 per cent seek investments that offer both financial growth and protection

 

70 per cent favour long-term investments over short-term gains.

 

73 per cent rely on recommendations from friends and family when choosing insurance investments, 68 per cent trust their intuition

 

Financial planning for higher education

 

The survey also highlighted the importance of financial planning for higher education. 39.69 per cent of females and 45.22 per cent of males believe that financial planning for higher studies is crucial due to the rising cost of education. Additionally, 42.24 per cent of females and 38.13 per cent of males emphasise the need to ensure funds for their children’s higher education.