Bridging the Gap: India's Financial Readiness Reality Check

HDFC Life's 'Ready for Life Index' reveals a significant gap between perceived and actual financial preparedness among India's urban populace. The study highlights retirement planning as a critical weak spot, with many relying on family support. The need for improved financial literacy and action is emphasized.

The 'Ready for Life Index' released by HDFC Life draws attention to a major disconnect in perceived and actual financial preparedness among urban Indians. Despite high perceived readiness, with an index of 85, the actual readiness stands at a modest 59, spotlighting a 26-point disparity.

The study identifies retirement planning as a crucial area with a 37-point gap in confidence versus tangible action. Many individuals still anticipate family support during retirement, stressing a transition towards independent financial security planning.

While awareness and optimism regarding financial health are prevalent, the study underscores the urgent need for long-term planning and financial literacy. Regional disparities further highlight variations in readiness across the country.

(With inputs from agencies.)