The Hindu Business Line : Indians spend more than they save: Survey

"Around 57 per cent of Indians are happy to have a short-term debt to allow them to have a higher spending power than 40 per cent of their global counterparts. However, compared to other economies such as some Southern European countries and Russia, India still continues to be favourably inclined towards savings," the survey, titled Consumer Attitude towards Savings, said.

The survey also stated that Indian consumers understood the importance of saving regularly. "When it comes to reasons for saving, family and healthcare are particularly important savings motivations, while the lack of choice and advice are barriers to savings," it said.

The survey also revealed that 24 per cent of Indians stated that they were more prepared to take financial risks than they were five years ago, compared to 18 per cent globally. "This demonstrates a strong trend towards higher performance potential products and away from lower guarantee style products," the survey added.

Retirement

The survey also showed that Indians were more likely to trust companies and institutions than the global average. It also showed that there are signs of concern about retirement. "Around 57 per cent of pre-retirees think they are going to have to work beyond their normal date of retirement to fund their retirement and 59 per cent state they are taking steps now to ensure they have an adequate level of income during retirement," it noted.

"It is heartening to find that Indians continue to save keeping the future in mind. While there might be an abrasion in the near term, over a longer term horizon savings does play a very important part in their lifestyle," Mr Bert Paterson, Managing Director and CEO, Aviva India said. Aviva also launched a Web site to provide advice on retirement planning.

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