Most Indians believe there will be more financial uncertainty in the world in 5 years, according to Anischit Index report Aditya Birla Sun Life Insurance.
The report is based on interviews with 7,978 respondents, of whom 5,320 were salaried employees and 2,658 were business professionals. Of these, 87 per cent of Indians believe that there will be more financial uncertainty and that family expenses such as children’s education will be the main concern over the next five years.
According to the report, financial uncertainty causes stress and anxiety, resulting from factors such as fluctuating income, debt, unexpected expenses or poor investments.
People are continually re-evaluating their priorities, making sacrifices, and adjusting their long-term goals. In times of uncertainty, it’s important to build a strong financial safety net, manage debt wisely, and cultivate effective saving and budgeting habits.
Currently, household expenses, with an uncertainty index of 78, are the biggest concern among Indians, followed by health and life-related concerns. Other factors include economic, job, climate change and political uncertainty.
Health and life are ranked second among the top uncertainties, with an uncertainty index of 75. According to the report’s findings, 59 percent of all working professionals are unsure about their future health and well-being and that of their family. Among all health-related uncertainties, serious illness and injury are the ones that people are most worried about, closely followed by mental health concerns.
When it comes to financial uncertainty, economic factors and technological advancements are key concerns for people. Fluctuations in the stock market are another emerging area of concern.
84 percent of respondents consider financial planning to be a key measure to deal with financial uncertainty. However, 35 percent have never turned to a financial advisor who can help them with these plans.
Meanwhile, people are aware of the multiple instruments available to mitigate this uncertainty and most respondents turn to emergency savings accounts and investments in life and health insurance policies to mitigate these risks.
In addition, consumers seem to agree that life insurance is now a cornerstone of comprehensive financial planning. Today, life insurance means ensuring peace of mind, making it especially important for consumers, the report states.
First published: August 26, 2024 | 20:04 IS
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