“It’s never enough”: 60%* India’s Sandwich Gen. worries about future financial security: study

Mumbai: Focused on offering the best to their parents and children, India’s Sandwich Generation feels unprepared for their own future. An Edelweiss Life Insurance study shows 60% respondents agree, “no matter how much I save or invest, I feel like it’s never enough for future.”

Sandwich Generation is defined as individuals in the age of 35 – 54 years, financially providing for two generations of dependents – their ageing parents, and growing children. The life insurer, in collaboration with YouGov, surveyed 4,005 respondents in this generation across 12 cities to understand their attitudes, beliefs, and level of financial preparedness.

Sumit Rai, MD & CEO, Edelweiss Life Insurance said, “Through our customer interactions over the years, we have closely seen how Sandwich Generation is living in a cycle of caring for their parents and children. They want to enable the essentials like healthcare and education while providing an aspirational life where ‘needs’ don’t come at the cost of ‘wants.’ This is primarily driving their financial decision making. And, in the process, they often end up relegating their own dreams to the background, leaving them feeling they are unprepared for the future.”

With their duty and love for family driving financial decisions, our study indicates financial misalignment or money dysmorphia within this generation (money dysmorphia, simply explained, is feeling unhappy about one’s financial situation). Over 50% agree with varying statements including worrying about running out of money, feeling always behind and like they are not doing well enough.

“This generation knows their key aspirations and believes to be adequately planned through investments in their preferred product categories. But our study has brought up some curious facts. They display low intent on sticking with these active investments over next 1 – 2 years. They also have accessed their investments, which are earmarked for pre-defined goals, ahead of time. No wonder they are feeling they are on shaky ground,” Rai added.

Across their top 5 preferred product categories – Life Insurance, Health Insurance, Mutual Funds, Equities, and Bank FDs – less than 60% currently have active investments across categories, and even fewer expect to persist with them over the next 1 – 2 years. On further probing, the study revealed that all these product categories have been prematurely liquidated, meaning accessed before their pre-defined goals were met. While essential needs dictated this liquidation, non-critical needs like vacation, spending during festivities, and more also emerged as the drivers.

This generation’s key aspirations are focused on child’s future (providing for education and marriage), healthcare needs of parents, and improving the family’s standard of living. They show reasonably high confidence in financial planning, with 94% saying that they either have a detailed plan or have undertaken some degree of planning. A majority 72% also believes that their investments are linked to specific aspirations.

Yet, 64% said they use some form of credit to fund their short-term needs, while 49% savings. The study indicates that credit coupled with cash/income is allowing them to address critical needs like healthcare and education, but also providing them flexibility to meet non-critical needs like vacation, home renovation, etc.

For long-term aspirations, 79% expect to rely on returns or gains from financial instruments, and 71% on regular future income. It is interesting to note that this generation considers retirement among their top 3 long-term aspirations, a period wherein one stops receiving regular income.

View the research report here: https://www.edelweisslife.in/documents/d/guest/sg_report_for_website

About Edelweiss Life Insurance

Edelweiss Life Insurance (formerly Edelweiss Tokio Life Insurance) established nationwide operations in July 2011 with an immovable focus on protecting people’s dreams and aspirations. The company has been focussed on bringing innovation, simplicity, and a new-age approach to life insurance, aligned with the expectations of the customer today. It has been offering need-based and innovative life insurance solutions to help customers live their #zindagiunlimited. With a customer-centric approach, the company has been operating as a multi-channel distribution business to effectively serve its customers across the country. As of March 2024, the company has 109 branches in 88 major cities.

Awards:

The company has earned recognition from several reputed industry forums over the years. Here are some noteworthy awards:

• Organ donation initiative recognised as Best CSR initiative – Life Category at FICCI Insurance Industry Awards 2023
• ‘Bolt’ recognised under ‘Public & Private Collaboration’ category at NASSCOM Foundation TechForGood Awards 2024
• Recognized as Great Place to Work for 4 consecutive years
• Golden Peacock Award 2023 for Risk Management
• Most Trusted BFSI Brands in 2023-2024 by the Marksmen Network
• GUINNESS WORLD RECORDS title for collecting the highest number of pledges for organ donation in a single day