75% Indians Increased Savings & Investments Since Jan 2021 Due To Covid, Claims Survey

The latest findings released through SBI Life¡¯s Financial Immunity Survey 2.0--in collaboration with Nielsen IQ (India Pvt Ltd)--have thrown light on how people¡¯s lives and financial decisions have changed due to the pandemic.

Let¡¯s look at the findings from the survey which covered up to 5,000 respondents.

What Worries Indians The Most?

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Against the backdrop of the Covid pandemic, rising medical costs and job instability are the top worries for 59% of the respondents, whereas 58% are concerned about their health and that of their family members.

Other areas of concern, as per the survey, were economic slowdown, mental health due to increased workload, loss of life during the pandemic, inadequate life/health insurance and inflation.

Also Read: Why Insurance Companies Are Insisting On A Mandatory Waiting Period For Covid Recovered Applicants

What Does Financial Immunity Mean To Indians?

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57% of Indian respondents associate financial immunity with the ability to maintain financial security and stability, followed by 48% who associate it with earning income from multiple sources.

Whereas 35%-43% associated financial immunity with having a secure job or business, the ability to generate income in the pandemic, living independently without relying on loans and the ability to live one¡¯s dreams without compromising on responsibilities.

Also Read: 7 Benefits Of Buying Health Insurance Right Away

How Has Covid Impacted The Financial Lives Of Indians?

As per the SBI Life¡¯s survey findings, for 44% of Indians, income was reduced due to Covid but is now restored back to normal, whereas for 35% reduced income still remains low and hasn't been restored. 14% saw no impact on their income, while 7% had in fact reported an increase in income.

What Are The Milestones Most Impacted Due To Covid?

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According to the survey report, 41% of respondents feel the goal to save and accumulate wealth was hit the most, whereas 37% have seen domestic and international travel plans jeopardized.

Other milestones that were impacted include providing for children¡¯s education, starting their own business or venture, buying durables and gadgets they want, buying a car, buying a home, self or child¡¯s marriage and retirement planning.

Also Read: F(N)AQ: How To Be Financially Prepared Before You Start Investing

How Have People Tackled Covid Financially & Built Financial Immunity?

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The steps taken by Indians to financially tackle Covid include 68% getting vaccinated (single/double), 56% have accumulated emergency funds, 53% bought health insurance policies and an equal percentage bought life insurance policies.

Also Read: What The Common Man Can Expect From Budget 2022

Behavioural Change Towards Savings, Insurance & Investments Changed

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Also Read: Over 50% Indians Fear Running Out Of Savings Within Just 10 years Of Retirement

The survey shows that 78% of Indians feel that it is extremely important to have insurance in their financial planning process. 44% and 46% of Indians have bought life and health insurance respectively, for the first time during COVID-19 pandemic.

And that¡¯s not all.

3 out of 4 Indians have increased their saving/investing since January 2021 and 56% of the Indians will use this accumulated amount of saving/investment to buy life insurance, invest in mutual funds and buy health insurance in the next 6 months, respectively, whereas 46% aim to keep it as an emergency fund.

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