While Indians dream big, real action and financial planning to fulfil the dreams is poor, says a study by Aviva Life Insurance
Young Indians are most aware about financial investments and show a faster adoption of digital modes, shows a study by Aviva Life Insurance. Millennials, or people in the age group of 25-29 years, are more responsible than their previous generation when it comes to planning about their future. They score 31 on Plan Index as compared to all-India score of 24. They also have a higher risk appetite.
The survey was conducted by Aviva Life Insurance in SEC A and B segments in top eight cities of India with a sample size of 5,572 people.
The survey consists of two indices—The Dream Index, which connotes how Indians are aware of their life goals and 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, indicating that while Indians dream big, real action to fulfil the dreams is poor.
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.
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Couples without kids are better financial planners: Couples without kids are doing better financial planning compared to those with kids. Couples without kids score 31 on Plan Index contrary to 21 of those with kids.
Higher income doesn’t drive financial acumen: People earning above `1 lakh a month are not better financial planners. They score 59 on Dream Index compared to 61 of All India.