Report: Post-COVID-19, Saving for the Future Has Grown Significantly, with 62% Choosing SIPs for Investment
BankBazaar’s ‘Moneymood’ report reveals a surge in saving habits after the COVID-19 pandemic, with 62% of individuals now investing in SIPs. The report highlights the reasons behind this change: 47% of people are saving for profits, 44% for a better lifestyle, 42% for travel, 31% for retirement, 28% for luxury products, and 27% for skill development.
The pandemic has prompted a significant increase in the trend of saving for emergency expenses. Now, 61% of people save to cover essential household expenses in times of crisis. Following this, 48% are saving for the better upbringing of their children.
In response to long-term savings, more people are now opting for mutual fund SIPs over fixed or recurring deposits. This year, 62% of individuals have invested in SIPs, marking a 5% increase from 57% in 2022. Meanwhile, the number of people investing in fixed and recurring deposits has risen to 57% from 54%.
Record Spending During Diwali
This Diwali season saw a spending surge of over Rs 2 lakh crore, up from Rs 1.6 lakh crore in 2023. A total of 43.3 crore transactions occurred, compared to 29.7 crore in 2023. The average expenditure per person during Diwali was Rs 4,659, a decrease from Rs 5,577 in 2023. However, the average expenditure per credit card rose from Rs 16,734 in 2023 to Rs 18,878.
Retirement Savings: 58% Have Enough Funds for a Comfortable Life After Retirement
According to the Moneymood report, 58% of people have saved enough for a comfortable post-retirement life, while 42% have not yet set aside any retirement funds.
Retirement Savings Goals:
- 6% of people aim to save over Rs 25 lakh for retirement.
- 19% consider Rs 25-50 lakh sufficient.
- 17% aim for Rs 50-75 lakh.
- 14% have set a target of Rs 75 lakh to Rs 1 crore.
- 12% plan to save between Rs 1 to 1.5 crore.
- 10% believe Rs 2 to 5 crore will be enough.
Ideal Retirement Age:
The report also reveals that 54% of people believe the ideal retirement age is between 51-60 years, while 21% wish to retire between 41-50 years.
