New Delhi, Oct 27 — Nearly 63 per cent of Indian workers consider themselves financially stable and confident, while 83 per cent said their emergency savings would last less than a year if their income stopped, a report said on Tuesday.
Around 91 per cent relied on employment income as their primary source of earnings, 74 per cent supported at least one family member and 92 per cent of respondents below the age of 34 were unprepared for retirement, the report from Grant Thornton Bharat said.
The report showed growing engagement with savings, investments and insurance products, while also navigating challenges relating to inflation, dependence on a single source of income and household financial responsibilities.
Income growth was a key concern with 62 per cent of respondents believing salary increases were insufficient to keep pace with future inflation. Among those aged 25-34, the figure rose to 70 per cent.
Nearly 82 per cent felt their compensation did not adequately reflect their skill levels.
The report further highlighted heavy reliance on a single source of income, as only 29 per cent earned investment income and less than 10 per cent received income from business activities, rentals or secondary employment.
Income diversification among women remains limited, with 94 per cent relying on salary as their primary income source, compared with 89 per cent of men. Further, 69 per cent of women reported no secondary income source, while only 20 per cent earned income from investments.
“As financial markets become more accessible and participation continues to expand, preparedness, protection and long-term sustainability will become increasingly important measures of financial resilience," said Ramkumar Subramanian, Partner, Financial Services Risk Advisory, Grant Thornton Bharat.
The report also highlighted that retirement remains the biggest financial blind spot and that investors are increasingly embracing market-linked products and AI tools for market insights
Nearly 61 per cent reported life insurance coverage between Rs 50 lakh and Rs 1 crore, 21 per cent had coverage below Rs 20 lakh. Health insurance coverage is relatively stronger, with nearly six in ten respondents reporting coverage between Rs 25 lakh and Rs 50 lakh, while 61 per cent expressed confidence that their health insurance would provide the expected coverage.