Nearly 63% of Indian Workers Feel Financially Secure, but 83% Have Limited Emergency Savings: Report

The report found that 83 per cent of respondents said their emergency savings would last less than a year if their income stopped, highlighting a gap between perceived financial security and the ability to manage extended financial disruption.

It also found that 91 per cent of respondents relied on employment income as their primary source of earnings, while 74 per cent supported at least one family member. Among respondents under 34, as many as 92 per cent were unprepared for retirement.

The findings point to growing engagement with savings, investments and insurance products, alongside persistent challenges from inflation, dependence on salaries and household financial responsibilities.

Salary growth struggles to keep pace with inflation

Income adequacy emerged as a major concern among respondents. Around 62 per cent believed their salary increases were insufficient to keep pace with future inflation. Among workers aged 25–34, the proportion rose to 70 per cent.

Nearly 82 per cent also felt their compensation did not adequately reflect their skill levels, indicating concerns about the relationship between earnings, professional capabilities and rising living costs.

These pressures could make it harder for workers to build emergency funds, increase investments and prepare for long-term financial commitments while meeting everyday household expenses.

Heavy reliance on a single source of income

The report highlighted limited income diversification among Indian workers.

Only 29 per cent of respondents earned income from investments, while fewer than 10 per cent reported earnings from business activities, rental income or secondary employment.

The dependence on salaries was particularly pronounced among women. Around 94 per cent of women identified employment income as their primary source of earnings, compared with 89 per cent of men.

Additionally, 69 per cent of women reported having no secondary income source, while only 20 per cent earned income from investments.

The findings suggest that many workers remain financially exposed to disruptions in their primary employment, with relatively few alternative income streams available to cushion the impact.

Retirement planning remains a major concern

Retirement preparedness emerged as one of the report’s most significant concerns, particularly among younger respondents.

With 92 per cent of respondents below 34 reporting that they were unprepared for retirement, the findings highlight a gap in long-term financial planning among younger workers.

While participation in savings and investment products is increasing, the report underscores the importance of building sustainable financial plans that account for retirement, emergencies and other long-term obligations.

“As financial markets become more accessible and participation continues to expand, preparedness, protection and long-term sustainability will become increasingly important measures of financial resilience,” said Ramkumar Subramanian, Partner, Financial Services Risk Advisory at Grant Thornton Bharat.

The report also noted growing interest in market-linked investment products and the use of artificial intelligence tools to obtain market insights.

Insurance coverage offers some financial protection

The findings showed varying levels of insurance coverage among respondents.

Nearly 61 per cent reported life insurance coverage ranging from ₹50 lakh to ₹1 crore, while 21 per cent had coverage below ₹20 lakh.

Health insurance coverage appeared relatively stronger, with nearly six in 10 respondents reporting coverage between ₹25 lakh and ₹50 lakh. Around 61 per cent also said they were confident their health insurance would provide the coverage they expected.

However, insurance coverage alone may not address the wider financial vulnerabilities identified in the report, including limited emergency savings, dependence on a single income source and inadequate retirement preparation.

Overall, the findings highlight a contrast between workers’ confidence in their current financial position and their capacity to withstand prolonged income loss or meet future financial needs. Strengthening emergency reserves, diversifying income and improving retirement planning remain important considerations for long-term financial resilience.