New Wealth Expectancy report reveals Indian savers are looking ahead to life after work, and the majority have a financial strategy in place
MUMBAI: Standard Chartered’s new Wealth Expectancy Report 2019 – which focused on emerging affluent, affluent and high-net-worth individuals (HNWIs), reveals that three in five Indian savers (60 per cent) have a financial strategy for the future that includes investment products. The study also shows that close to four in five (77 per cent) of these savers in India see money as essential to happiness, more than in any other market in the study.
Indian affluent savers are a lot more positive about digital banking than their counterparts elsewhere: nearly four in five of the emerging affluent (78 per cent) and affluent (79 per cent) in India feel more in control of their finances by managing their money digitally, and 81 per cent of both groups believe this has also helped them achieve a better quality of life.
The Wealth Expectancy Report 2019 examines the saving and investment habits of 10,000 emerging affluent, affluent and high-net-worth individuals (HNWIs) across 10 fast-growing economies, revealing a universal challenge: people’s aspirations outstrip their ‘wealth expectancy’, or their total net wealth at age 60.
The findings for India show that those with enough disposable income to save and invest have a huge opportunity to realise their aspirations for retirement. Already, almost one-third (32 per cent) are on track to achieving more than half of their wealth goal at age 60. For the 68 per cent that are further away, it is still possible to narrow the gap with well-defined goals and a considered wealth management approach.
What are Indians saving for?
Funding their children’s education, establishing or funding their own business, investing in property and supporting parents or relatives financially are the most common aims for savers in Indi.
India’s wealth expectancy
The average wealth expectancy of those in India with enough disposable income to save and invest is INR 3.6 crore (USD518,000), or INR 1.3 crore (USD195,000) for the emerging affluent, INR 2.6 crore (USD374,000) for the affluent and INR 6.9 crore (USD986,000) for HNWIs.
On average, this would give Indians INR 93,000 (USD1,332) to live on per month during retirement, which is less than both their current income and their wealth aspiration. If they were to spend at the average monthly rate to which they aspire, their wealth expectancy would last the emerging affluent 6 years of retirement, and the affluent 9 years, while HNWIs would be able to fund 5 years.
However, our study also shows that this is a strong appetite among Indian savers to learn more from reputable sources and experts when it comes to making their money go further. Nearly three-quarters (73 per cent) of India’s emerging affluent say they would be open to using a range of investment products if they had a better level of financial knowledge
Nakul Jain, Managing Director, Head, Priority, Deposits and Branch Banking, Standard Chartered Bank, India said: “For those who want to avoid disappointment with their wealth in retirement, the time to take action is now. Large international banks, such as Standard Chartered, have an important role to play in helping people to narrow their ‘wealth expectancy gap’. It starts with understanding what our clients really need, then using our wealth expertise and franchise to educate and empower them to manage their wealth in line with their aspirations.”
The Standard Chartered Wealth Expectancy Report 2019 is available to download at: https://av.sc.com/corp-en/content/docs/wealth-expectancy-report-2019.pdf
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