Income-related anxiety high as inflation erodes savings, salary lag costs, finds अ-Nishchit index 

Aditya Birla Sun Life Insurance Company Limited (ABSLI), the life insurance arm of Aditya Birla Capital, has released the second edition of its nationwide uncertainty tracker, the अ-Nishchit Index 2.0, offering insights into how Indians perceive risk and insecurity in 2025. The index places India’s overall uncertainty score at 79, highlighting persistent anxiety across economic, health, financial and social dimensions.

The index draws on 11 parameters and 49 attitudinal statements, covering both uncontrollable external risks and potentially controllable personal factors. These include economic stability, health and safety, emotional wellbeing, digital security, family responsibilities and environmental concerns. Validation checks show that 73 per cent of respondents describe themselves as extremely worried about their future, reinforcing the robustness of the findings.

Personal finance remains a key source of uncertainty, driven more by preparedness gaps than income levels. Economic and financial instability scores 80, led by fears of inflation eroding savings (81) and incomes failing to keep pace with rising living costs (80). Long-term concerns are also pronounced, with respondents uncertain about their ability to build adequate wealth (80), maintain emergency buffers for job loss or medical shocks (79), and ensure sufficient health insurance coverage for serious illnesses (78).

Retirement-related anxiety remains elevated, with an index score of 78. Rising elderly care costs (79), doubts over financial independence in old age (78) and inadequate retirement planning (78) underscore a shift in priorities from wealth accumulation to long-term financial resilience.

The study finds a clear link between financial preparedness and lower perceived uncertainty. Individuals holding up to three insurance or investment products record scores close to the national average. However, uncertainty drops sharply among those with four or more products, with index scores falling to 73 for insurance holders and 75 for investors, suggesting that diversified and layered financial protection significantly improves confidence.

Uncontrollable risks dominate the uncertainty landscape, with economic and financial instability and environmental and climate risks emerging as the top drivers, followed by health and medical concerns. Digital and cybersecurity threats, public safety issues, and policy and geopolitical factors also feature prominently. Among controllable factors, emotional wellbeing, income and debt management, career pressures and family responsibilities contribute materially to overall anxiety.

While uncertainty cuts across age, gender and occupation, regional and urban differences are more pronounced. The index is lowest in southern India at 71 and highest in the east at 83. Uncertainty also rises as city size decreases, peaking at 86 in Tier-3 towns.

Commenting on the findings, Kamlesh Rao, MD and CEO of Aditya Birla Sun Life Insurance, said the index highlights how converging economic, health, climate and digital risks are shaping everyday anxieties, and that proactive, well-understood financial preparedness is key to helping individuals regain control over their future.