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According to a recent HSBC Asian Insurance Monitor, 58 per cent Indians feel vulnerable because insufficient savings, of which 11per cent said they have no savings. Across the region, Mainland Chinese (69 per cent) rank highest with insufficient savings followed by Taiwanese (64 per cent), and South Koreans (64 per cent). In Hong Kong, 24 per cent say they have no savings, the biggest proportion in the region.
The HSBC Asian Insurance Monitor surveyed 3,563 individuals in seven countries and territories, the largest of its kind in Asia’s key markets.
David Fried, group general manager and group head of insurance, HSBC Holdings, said, “India, traditionally has had a strong savings culture, with Indians savings a third of their monthly income in various financial instruments. This stood the economy in good stead during the recent financial crisis.”
Indians are saving around a third (34 per cent) of their monthly income in financial services – pensions, savings in banks, insurance and investments in stocks and mutual funds.
In India, 51 per cent of the respondents said that saving regularly through a monthly instalment plan is the priority savings strategy in the next six months.
Close to half (43 per cent) of Indian respondents are likely to buy products that offer capital protection, 42 per cent are interested in products that allow for monthly payments and 40 per cent plan to buy products that provide retirement income.
“Our survey shows that Indians will continue to rely heavily on savings to meet retirement goals and to build up emergency funds. People are feeling the pressure to save more in an era where people are living longer, supporting extended families and coping with escalating medical costs,” Fried added.
Over a third (38 per cent) in India say their family will need to use savings for daily and medical expenses in the event of critical illness, death or
accident.
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