NEW DELHI (CU)_The COVID-19 pandemic has already disrupted the lives and livelihoods of hundreds of thousands of people across India, and the uncertainty of the situation is said to have made people see the benefit of savings. This has meant that people from the South Asian nation continue to save, despite job losses and salary cuts, a survey conducted by consulting firm KPMG has revealed. The study found that even with a 10 per cent fall in income, 85 per cent respondents are expected to stick to their savings plans, suggesting a ‘saving sentiment’ among the people.
The report, titled ‘Me, My Life, My Wallet 3.0’, further noted that 70 per cent of those who participated in the survey across all age groups in India are concerned about their future finances in comparison to 49 per cent globally.
“The unexpectedness, scale and severity of the global pandemic has led to increased anxiety about personal finances across all demographics. Especially for youths who were just making their foray into the job market, lack of prior work experience (and therefore savings) combined with the severely compromised economic outlook makes the situation particularly precarious,” KPMG noted.
In terms of demography, the largest portion was Generation X (Age 37 to 53), of which 78 per cent are more concerned about their future finances, while 70 per cent of Millennials (Age 17-36) and 50 per cent of younger demographics have also started investing more in saving instruments.
Other trends highlighted in the report was acceptance of digital channels which is gradually being embraced across India.
“By default, rather than by design, India’s older demographic has had to adopt a digital-first lifestyle. Indians, across all ages, have quite easily become conversant with video calling, net banking, online grocery shopping and streaming platforms. This was not a purely urban phenomenon, as the increase in digital sophistication of the older cohort was observed in smaller towns across India as well.”
The study included 2,164 participants from urban and semi-urban markets across the South Asian nation. It included two phases; the first was conducted between February and March last year, while the second phase was in September. Another online survey was conducted by KPMG in January and February this year, which included 1,191 participants.
