Wave of worry: Retirement savings plummet by 7% in 2023, shows survey

livemint.com:

financial literacy is apparent as an increasing number of individuals are now engaging in mutual fund investments. Mutual funds remain the preferred investment option for Indians, with fixed deposits following closely behind. Investors stuck to the trammels of convention when deciding how to invest their money for greater returns.

This year, individuals predominantly opted for conventional investment avenues, including fixed deposits, stocks, and mutual funds. Nonetheless, a significant majority still opt to keep their capital in savings bank accounts. Nevertheless, there were challenges on the savings front.

Geopolitical tensions and elevated inflation have significantly impacted global economies, and India is no exception. The stagnation of savings for the majority of Indians in 2023 is a worrisome trend, with only slight improvements for a select group indicating the uneven effects of these pressures. Reports may not capture attention without the infusion of intriguing names for the characters, which bestows upon them a unique and distinct identity.

Individuals within the age range of 22-27 years were labelled as “Early Jobbers", while those in the 28-34 years age group were identified as “Moneymooners". The last category, encompassing individuals aged 35-45 years, is referred to as “Wealth Warriors" for explanatory purposes. The survey data unveiled that among Wealth Warriors (61 per cent), Moneymooners (56 per cent), and Early Jobbers (45 per cent), mutual funds held the position of the second-most favoured investment.