Indian millennials are financially savvy: Survey

Even as Covid-19 hit the country and the world in recurring waves, over 64% of respondents across the age group either maintained or increased their savings during the pandemic. While 70% of those in the 30-35 age group increased or maintained the proportion of savings, 68% of those in the 22-25 age group displayed similar behavior. This indicates that people are showing responsible financial behavior from an early age.

Ensuring a healthy savings ratio, Indian millennials across the age group believe in planning their own investments rather than relying on others. This shows their level of confidence in themselves. Given their convenience in accessing online platforms and researching the entire process, this trend is set to continue in the future. It was only in the youngest band within the millennium, i.e. 22-25 years, that one in five respondents showed reliance on their parents in making the right financial investment decisions. On the other hand, 90% of 26-29 and 96% of 30-35 made their own decisions regarding financial planning and investment.

When one looks at geographic differences, the findings are not surprising. People in metropolitan cities showed a high degree of independence with 93% in making their own decisions regarding financial planning. This behavior was marginally lower for those in Tier 1 and 2 cities, with 89% making their own financial decisions. Interestingly, a small percentage of respondents in metro and tier 1 cities were dependent on financial experts, while in tier 2 they were completely dependent on their parents when they decided to channelize their hard earned money into the right resources. did not make a decision about it.

Amidst encouraging habits towards financial prudence, Indian millennials are yet to be fully aware and understand about solutions such as life and health. Insurance, While 57% of people in the 30-35 age group knew about life insurance, only 20% in those 22-25 years old confirmed this aspect. Similarly, when it comes to health insurance, 57% of people between 30-35 years of age were aware of this category, but only 19% between the age group of 22-25 years responded positively.

Of those who had protected themselves with life insurance, 43% believed they were adequately protected. However, a similar 41% felt the other way around, it was unsure whether they had taken a policy with adequate cover. This clearly indicates the need to equip Indian Millennials with the right information and understanding of the level of insurance as they go through different stages of life.