88% anticipate high financial uncertainty in next 5 years, including job loss: A-Nishchit Index 2024

A recent survey has shown that about 88% people in India feel there could be high or very high levels of financial uncertainty over the next five years, mainly due to uneven economic factors, like inflation, jobs and others. The survey, A-Nishchit Index 2024, revealed that about 36% cited economic uncertainty, such as potential job loss, as their top worry, adding that technological advancements, including AI and tools like ChatGPT, are next in the list.

To safeguard their future, the survey showed that people have opted for different insurance polices to tackle crisis situation. According to survey data, 76.57% of individuals have taken insurance policies as a financial safeguard. Furthermore, 69.28% have a dedicated savings account for emergencies, and 48.95% have invested in fixed deposits to prepare for financial uncertainties. Interestingly, 34.87% of respondents admitted to not engaging in financial planning or review, instead relying solely on professional guidance.

Other major highlights showed 83% of individuals believe that engaging in financial planning is crucial for effectively managing financial uncertainty in the long run. About 47% of people support the idea that investing in Fixed Deposits (FDs) presents a wiser choice compared to splurging on a costly new smartphone.

Around 77% of respondents prefer stable investments such as bank FDs, prioritizing security over the allure of high returns. About 40% of investors are inclined towards high-risk, high-return options despite their inherent inclination towards financial stability.

Around 72% of individuals opt to diversify their portfolio by including traditional assets like Gold and real estate, maintaining confidence in these well-established investment avenues. About 68% of participants actively seek investment opportunities that offer a combination of financial growth and protection.

On investments, 70% of the surveyed individuals exhibit a preference for long-term investments, indicating a shift towards patience and sustainable growth in investment practices. About 75% of respondents express confidence in their investment decisions, attributing it to their past experiences and optimistic outlook on financial matters.

Around 73% of participants rely on recommendations from friends and family members when navigating insurance investments. About 68% of individuals place their trust in their intuition when making investment choices, underscoring the significant influence of gut feelings in the realm of finance.

Financial Planning Study Findings

i. A significant percentage of both females (39.69%) and males (45.22%) acknowledge the importance of financial planning for higher studies, attributing it to educational inflation and financial constraints.

ii. Another notable finding reveals that 42.24% of females and 38.13% of males emphasize the significance of securing funds for their children's future higher education endeavors.

iii. Furthermore, 14.68% of females and 13.37% of males encourage their children to explore scholarship opportunities or consider education loans as part of their financial planning for higher studies.

iv. However, a small proportion of respondents, with 3.39% females and 3.28% males, expressed a belief that financial planning is unnecessary, assuming that everything will naturally fall into place without proactive measures.

Health-related uncertainties

Health-related uncertainties are a prevalent concern among both females and males. According to recent data:

i. 59.81% of females and 62.88% of males worry about experiencing serious illness or injury.

ii. 55.62% of females and 54.23% of males express concerns about access to healthcare services.

iii. 53.42% of females and 56.00% of males have reported mental health concerns.

iv. 40.54% of females and 38.39% of males are troubled by genetic predispositions to diseases.

v. 39.04% of females and 36.28% of males are anxious about aging-related health issues.