Millennials are improving their wealth management strategies to prepare for future contingencies, according to the ‘Millennial Mood Index 2021’ survey report by CASHe, an AI-driven financial wellness platform.
According to the survey, over 84 per cent of millennials across India said they have stepped up their wealth management strategies in a bid to prepare for future contingencies, while looking at opportunities for stronger and sustainable growth in the post-pandemic world.
The survey focused on the impact of the Covid-19 pandemic and how it has changed the everyday behaviour of millennials across a variety of aspects, including health, travel, shopping, savings, and credit appetite.
While the majority have become more cautious about finances amid the pandemic, awareness regarding saving and insurance have also improved among the cohort.
While 52 per cent of the respondents said they have grown their savings, 35 per cent have purchased comprehensive health and life insurance plans. Further, 13 per cent have committed to more extensive investment programmes.
Remote work and health
Indian millennials have become more health cautious amid the pandemic that has also led to remote work.
According to the report, over 71 per cent of millennials have grown more health conscious amid the pandemic. Around 54 per cent respondents said they now prefer eating home-made healthy food, 28 per cent have adopted a routine, including regular walks or some form of daily exercise, 11 per cent of respondents said they have adopted yoga and meditation, while 7 per cent have registered at a gym.
On going back to work in the post-pandemic order, 68 per cent of the respondents stated that they are more than eager to get back to the physical world and operate from their offices. While 15 per cent preferred to continue with the work-from-home system, 17 per cent favoured a hybrid model of functioning, visiting the office once or twice a week.
When asked about eating out at restaurants, more than 52 per cent of the respondents said even if they eat outside, they would prefer restaurants that observe health, safety and social distancing norms.
Twenty-two per cent indicated getting habituated to ordering food online and preferring it that way as they could enjoy it from the comfort of their homes, while observing the necessary safety norms. The study found 26 per cent of the respondents continue to be cautious and have been avoiding eating outside at all.
After around two years of uncertainties and travel ban, there is also a huge pent-up demand among millennials for a “getaway vacation.”
More than 56 per cent of the respondents said they are planning a vacation early this year, as soon as the current surge in Covid-19 cases decreases. In terms of travel destination preferences, 71 per cent indicated a preference for a domestic destination, 9 per cent preferred an international destination, while 20 per cent of the respondents hadn’t yet made up their mind.
There has been a clear shift in millennial shopping behaviour altered by the pandemic, according to the survey. While 38 per cent of the respondents have permanently shifted to shopping online as they now prefer it that way, 17 per cent still favoured the idea of physical shopping, and 45 per cent preferred a mix of both, depending on what they wanted to buy.
V Raman Kumar, Founder Chairman, CASHe said, “The Covid-19 pandemic has radically altered our everyday behaviour, perhaps forever.”
According to Kumar, it has been one of the most resilient generations despite various challenges and economic upheavals over the last two years.
“Millennials, who also represent the country’s largest workforce, have showcased the grit and resolve to bounce back and kick-start the economy. Millennials have the potential to redefine India’s investment and consumption story, which will play a critical role in shaping our country’s economy in the post-pandemic era,” said Kumar.
The report is based on a pan-India survey conducted by CASHe among more than 30,000 customers. More than 65 per cent of the responses were received from the metro markets of Mumbai, Delhi, Kolkata, Hyderabad, Bengaluru, Ahmedabad, Pune and Chennai, while the remaining 35 per cent were received from other tier-II and tier-III towns.