Tackling low savings rate: Automate with SIPs, retirement accounts

Control lifestyle inflation and avoid excessive reliance on debt by automating savings, budgeting better, aligning investments to goals and tracking progress regularly

A recent survey conducted by Marcellus Investment Managers in collaboration with Dun & Bradstreet India highlights that even those with good incomes struggle to save adequately: 43 per cent of respondents were found to have a savings rate of less than 20 per cent of their post-tax income. The survey covered 465 respondents from metros, tier-1 and tier-2 cities, all aged above 30 years and earning a post-tax household income of over ₹20 lakh annually.

Lifestyle inflation, high fixed costs

Lifestyle inflation is a key reason for the low level of savings. As incomes rise, people upgrade their lifestyles. “Premium education, luxury