Indians are big dreamers, but when it comes to financial planning they lag behind by a distance, reveals the Aviva Plan India Plan survey 2017, a one-of-its-kind survey conducted by Aviva Life insurance. However, millennial are better financial planners, while women are catching up fast with men on financial awareness and planning.
It has often been reported that India fares poorly on financial literacy. However, so far, no one had endeavored to commission a specific research to ascertain the actual numbers when it comes to financial planning. Since, Aviva’s philosophy of ‘Good Thinking’ is all about real ideas that make a real difference to customers, Aviva India has undertaken a study with the topmost tier of SEC A & B segments in the top 8 cities of the country.
Trevor Bull, MD and CEO, Aviva Life Insurance, commenting on the study said, “The country is making rapid strides and is leaving its mark in many spheres. No dream is too big when it comes to Indians today, who are shining across the global stage. However, when it comes to planning for their life goals, most Indians don’t have any concrete financial plans towards achieving their life goals. At Aviva India, we are making this our Brand Purpose, to help India become financially literate and better planned towards achieving what they intend to, for their lives”.
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Aviva Plan India Plan survey consists of 2 indices:
– The Dream Index, which connotes how Indians are aware of their life goals; and
– The Plan Index, which connotes how well financially planned Indians are towards achieving their life goals.
The Dream Index for the topmost tier of Indians stands at 61, whist the Plan Index stands at a dismal 24. Clearly indicating that whilst we dream big, real action planning with regards to ascertaining the fulfillment of the dreams is poor.
Anjali Malhotra, Chief Customer Digital & Marketing Officer, Aviva Life Insurance, said, “The “Plan India Plan” study reveals a disturbing reality about financial awareness & planning in India. We lack the rigor to create robust financial plans for our own life goal objectives, which we consider dear to our heart, thereby leaving them open to chance! Therefore this study is a first step in assessing the gaps. In keeping with our Good Thinking philosophy, we shall now develop programs to help consumers plan better.”
The survey also reveals some interesting facts that are contrary to popular beliefs such as –
Millennials are better dreamers and planners
Indians between age group of 25-29 years are most aware about financial investments. Millennials score 31 on Plan Index, compared to All India score of 24.
Women are catching up fast
Contrary to popular belief, woman are catching up fast with men on financial planning. Women score 19 on Plan Index against 25 of men.
Sec B are better at financial preparedness than Sec A
People from Sec B are better informed about financial planning
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Couples without kids are better financial planners
Couples without kids are doing better financial planning compared to couples with kids. Couples without kids score 31 on Plan Index contrary to 21 of couples with kids.
Higher Income doesn’t drive significantly better financial acumen
People earning more than 1 lakh a month are not better financial planners. They score 59 on Dream Index compared to 61 of All India.