Financial Freedom eludes Indians: HDFC Life survey

An Indian consumer’s sense of financial freedom is low. According to HDFC Life’s Life Freedom Index, while Indian consumers are jittery about their ability to meet their goals, they are making efforts to improve their state. The key findings:

Complete financial freedom still far
Financial freedom is low due to poor awareness, bad planning and a feeling more needs to be done to ensure adequate finances.

Extremely free: 100
Free: 75
Neither insecure nor free: 50
Insecure: 25
Extremely insecure: 0

Score of Indian consumers: 57.9


Consumers not very financially aware
Financial literacy is low. Consumers making financial choices based on low awareness of future financial needs.

Aware with full knowledge: 100
Aware with fair knowledge: 75 Aware with very little knowledge: 50
Aware with no knowledge: 25
Not at all aware: 0
Score of Indian consumers: 51.9

Financial planning not comprehensive
Consumers plan for child’s education, retirement and health, but external economic factors are not accounted for while planning.

Comprehensive plan, high realignment and review: 100
Planning, realignment and review need improvement: 75
Basic plan, realignment and review: 50
Poor planning, realignment and review: 25
No financial plan: 0

Score of Indian consumers: 61.8

Sense of liberty exaggerated
There is difference between financial freedom and security. The sense of financial freedom is not supported by adequate resources.

High freedom and security: 100
Freedom and security need improvement: 75
Low freedom and security: 50
Poor freedom and security: 25
No freedom and security: 0

Score of Indian consumers: 67.7


(Source: HDFC Life’s Life Freedom Index, which surveyed over 1,600 respondents across 10 Indian cities.)