A new Grant Thornton Bharat survey shows India's workforce feels financially secure, yet many lack enough savings. While 63 per cent of people feel stable, 83 per cent said their emergency funds would last less than a year. Most workers rely only on salaries, leaving them exposed to income shocks.
Despite growing participation in investments and insurance, India's workforce faces pressure from inflation, family responsibilities and limited income diversification, finds a survey.
India's workforce appears increasingly confident about its financial future, but many may still lack the savings needed to weather a prolonged loss of income, reveals a new survey by Grant Thornton Bharat. The findings point to a gap between perceived financial stability and the ability to withstand a prolonged income shock.
The report, titled India's Financial Resilience Report 2026: Insights into Income, Savings, Insurance and Household Financial Preparedness, found that 63 per cent of respondents consider themselves financially stable and confident and 83 per cent say their emergency savings would sustain them for less than a year if their income stopped.
The report is based on responses from 528 people across various age groups, occupations and geographies in India, collected between November 2025 and February 2026. Nearly 87 per cent of respondents work in the private sector, and around 71 per cent live in Tier 1 cities.
As many as 62 per cent of respondents believe their income increases will not be sufficient to keep pace with future inflation. At the same time, 91 per cent rely on salaries as their primary source of income, leaving them exposed to a disruption in employment.
Income pressures and dependence on salaries
India needs labour-intensive growth to address job challenges: Economists
BFSI sector must lead infra and manufacturing funding, says Shaktikanta Das
Nov Visa Bulletin: Green card dates advance for Indian family applicants
Buying train tickets at counters? Make digital payment for insurance
Agentic payments need clear consent and security rules: Industry leaders
Around 70 per cent of respondents in the age group 25-34 believe their income increases will not keep pace with future inflation, compared with 62 per cent across the sample.
The report also found that 82 per cent of respondents believe their compensation does not adequately reflect their skills. The proportion rises to 85 per cent among those who describe themselves as experts and 83 per cent among those who consider themselves highly skilled.
Dependence on a single income source is another vulnerability. While 91 per cent rely on salaries, only 29 per cent report income from investments. Fewer than 10 per cent report income from business or self-employment, rental assets or secondary employment.
The pattern is more pronounced among women. The report found that 94 per cent of female respondents rely on employment income, compared with 89 per cent of men. Around 69 per cent of women reported having no secondary income source, while 20 per cent earned income from investments.
Family responsibilities add to the strain
Around 74 per cent of respondents support at least one family member, while 32 per cent identify themselves as the sole financial provider in their household.
The report found that respondents in Tier 2 and Tier 3 cities were more likely to support multiple dependants than those in Tier 1 cities. Such responsibilities can limit the amount available for personal savings, insurance and long-term investments.
The survey also found that 84 per cent of respondents had fully or partially funded emergency funds. Yet 82.7 per cent said their savings would sustain them for less than a year if they lost their income.
The report identifies fixed obligations such as rent, equated monthly instalments (EMIs), insurance and support for dependants, along with moderate income growth and limited income diversification, as factors that can constrain the duration of these savings.
Retirement planning remains a weak spot
Around 92 per cent of respondents below 34 reported being unprepared for retirement. Among those aged 35-54, 77 per cent remained inadequately prepared.
Insurance coverage presents a more mixed picture. Around 61 per cent of respondents reported life insurance cover of ₹50 lakh to ₹1 crore, but 21 per cent had cover below ₹20 lakh. Nearly six in 10 reported health insurance cover of ₹25 lakh to ₹50 lakh.
While 61 per cent expressed confidence that their health insurance would provide the expected coverage, the report found lower confidence in life insurance. It also noted that 16 per cent of respondents did not spend on insurance, medical bills or parental care, with 91 per cent of this group earning less than ₹15 lakh annually.
Market participation grows, but preparedness lags
Respondents reported substantial participation in market-linked investments. Around 61 per cent said they invested in stocks, cryptocurrency and mutual funds. Among investors, mutual funds were the most widely held product, at 82 per cent, compared with 23 per cent investing directly in equities and stocks.
The report also found that 69 per cent of respondents occasionally used artificial intelligence tools for market insights, pointing to growing interest in technology-assisted financial decision-making.
Ramkumar Subramanian, partner, Financial Services Risk Advisory at Grant Thornton Bharat, said financial confidence and financial resilience were not always the same. While respondents were increasingly engaging with formal financial systems, many continued to face pressures from inflation, family responsibilities, retirement preparedness and dependence on a single income source.