A majority of Indians believe that there will be more financial uncertainty in the world in 5 years, according to the Anischit Index report by Aditya Birla Sun Life Insurance.
The report is based on interviews with 7,978 respondents, of which 5,320 were salaried individuals and 2,658 were business professionals. Out of these, 87 per cent of Indians believe that there will be more financial uncertainty, with family expenses, like children’s education, being the top concern for the next 5 years.
As per the report, financial uncertainty causes stress and anxiety, stemming from factors like fluctuating income, debt, unexpected expenses, or sub-par investments.
Individuals are continuously reevaluating priorities, making sacrifices, and adjusting long-term goals. In uncertain times, building a strong financial safety net, managing debt wisely, and cultivating effective budgeting and saving habits are important.
Currently, family expenses, with an uncertainty score of 78, are the biggest concern among Indians, followed by health and life-related worries. Other factors include economic, job, climate change, and political uncertainties.
Health and life are ranked second among the top uncertainties, with an Uncertainty Index of 75. As per the findings of the report, out of the total working professionals, 59 per cent are uncertain about the future health and well-being of themselves and their family. Among all health-related uncertainties, serious illness and injury are foremost on people’s minds, closely followed by mental health concerns.
When it comes to financial uncertainty, economic factors and advancements in technology are key concerns for people. Fluctuations in the stock market are another emerging area of concern.
Financial planning is regarded as a key measure to counter financial uncertainty by 84 per cent of respondents. However, 35 per cent have never approached a financial advisor who can help them with these plans.
Meanwhile, people are aware of multiple instruments available to mitigate this uncertainty, with most respondents relying on savings accounts for emergencies and investment in life and health insurance policies to mitigate these risks.
Furthermore, consumers appear to concur that life insurance is currently a cornerstone of comprehensive financial planning. Today, life insurance means securing peace of mind, making it particularly important to consumers, the report said.
First Published: Aug 26 2024 | 8:04 PM IST
