Scripbox announced the results of its annual Financial Freedom Survey earlier today. The survey has been conducted ahead of Independence Day and is now in its fourth edition. It attempts to understand the readiness to become financially free among Indians this year with a special focus on retirement planning. Most of the respondents are in the age group of 34-55 years. Scripbox polled 1400+ adults in this pan-India survey.
This year’s study has established a growing maturity towards financial planning in general. More than 75% of the respondents understand the value of a financial plan to achieve their life goals and have started building one. In fact, one out of every two Indians has prioritized a financial plan to ensure their wealth grows, from 28% in 2020 and 41% in 2021.
The maturity of financial planning also corresponds to action. 40% of the respondents say that they prefer to take the help of digital investment platforms because of the accuracy of technology and aid in decision making. There is also a growing willingness not to leave financial planning to chance—a post-pandemic event. 32% of respondents aim to create a financial plan to help them meet their long-term goals.
This year there is more awareness among the respondents about long term investments and a growing sense of achieving financial independence. However, the study has highlighted a lack of preparedness around retirement planning, even though it is cited as the second most important priority after financial planning. 80% of people are not sure about their post retirement plans. Studies show that 65% manage their finances on their own, and only 20% are considering seeking professional advice. The combination of managing their own finances, and their lack of confidence in their retirement planning further highlights the importance of professional advice.
Our survey also establishes that 62% of the respondents have started actively saving for retirement only after the age of 30. Among the financial instruments used for investment for the golden years, Equity Mutual Funds emerged as the No. 1 choice among 75% of all respondents. This was followed by Employees’ Provident Fund (EPF), which is used by 44% and Personal Provident Fund (PPF), with 43% voting. Insurance is the last option as an investment option for retirement and was chosen by only 23%. This suggests that there is a growing understanding of insurance being more protection and not investment.
“It is heartening to see that more people understand the need for financial planning and focusing on long-term goals like retirement. ‘Stay invested and keep investing’ is something that Scripbox as a consultant has been offering and deeply believes in. ‘Financial independence’ can mean different things to different people, but it is a long-term and important goal that requires a trusted partner. Thus, it is always better to start investing from an early age with guidance, especially for retirement, as it provides you the cushion to take more risk to fulfill all your dreams,” says Scripbox Founder and CEO CEO Atul Singhal said.
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