A recent Stable Money-YouGov survey, released on November 5, highlights a significant divergence in financial priorities across generations in India. While younger Indians, specifically Gen Z, are increasingly focused on acquiring homes, older investors from Gen X are predominantly planning for retirement.
Generational Financial Goals Diverge
The survey, based on responses from 1,003 savers and investors across urban India, found that 26% of Gen Z respondents identified buying a home as their primary financial objective. For this younger demographic, retirement ranked fourth, trailing homeownership, building an emergency fund, and travel aspirations. This suggests a balanced approach to immediate desires and long-term financial stability.
In contrast, 35% of Gen X respondents indicated that retirement planning was their foremost financial goal. The findings underscore how financial aspirations evolve with age and life stage, even as digital tools increasingly facilitate saving and investing.
Indians Embrace Earlier Saving Habits
A notable trend revealed by the survey is the earlier adoption of saving and investing habits among Indians. A substantial 65% of all respondents reported starting their financial journey by the age of 30. Breaking this down further, 39% began between 18 and 25 years old, with another 26% starting between 26 and 30.
By age 35, the proportion of individuals engaged in financial planning rose to 82%, indicating that these practices are becoming an established part of early adulthood. Digital platforms are playing a crucial role in this shift, with 80% of surveyed savers utilizing online channels for their financial activities.
Popular Investment Choices and Financial Independence
Despite the growing appeal of market-linked instruments, traditional savings products maintain their popularity. Mutual funds emerged as the top investment choice for 23% of respondents, closely followed by bank fixed deposits and recurring deposits at 21%.
When asked to rank their top three preferred products, mutual funds garnered 57% support, with FDs and RDs close behind at 56%. Gold and silver were also prominent, featuring in the top three preferences of 45% of respondents, ahead of insurance/savings plans (39%) and equities (36%).
The survey also shed light on increasing financial independence among women. Approximately 46% of women respondents reported making household financial decisions independently, while an additional 29% made decisions jointly with a partner. Across all respondents, 56% reported independent financial decision-making.
Disciplined Approach to Windfalls
Indians also demonstrated financial discipline when faced with unexpected money. About 32% stated they would invest additional funds in equities or mutual funds, and 25% preferred fixed-income products. Furthermore, 19% would deposit the money into savings accounts, and 11% would use it to repay debt. Only 13% chose to spend windfalls on travel, experiences, or luxury items.
Saurabh Jain, Co-founder of Stable Money, remarked, "Indians have always been savers, and that habit is intact. Today it lives on the phone." He added that 93% of respondents either currently use digital platforms or intend to adopt them for their financial needs.