Kochi leads the way in proactive financial planning: Survey

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Kochi residents have demonstrated a strategic approach to financial planning, with 70 per cent proactively investing in insurance policies for financial security, according to Anishchit Index 2024 prepared by Aditya Birla Sun Life Insurance (ABSLI).

This contrasts with the national trend, where 42 per cent depend on business or pensionable income. In Kochi, only 22 per cent depend on these sources, opting for structured financial instruments, the report said. Life insurance (68 per cent) and diversified portfolios (52 per cent) are favoured for emergency preparedness, highlighting a commitment to long-term stability. Only 41 per cent utilise savings accounts for emergencies, compared to 69 per cent nationally, reflecting a preference for growth-oriented financial strategies, the report added.

In financial uncertainty, 72 per cent of Kochi respondents expect high levels of uncertainty over the next five years, slightly more optimistic than the national average of 88 per cent. However, 49 per cent of Kochi’s workforce contends with unpredictable work schedules, higher than the national average of 43 per cent, indicating a more challenging work environment in the city.

The survey showed that just 47 per cent of Kochi residents believe their parents’ financial habits significantly influenced their own approach, compared to 63 per cent nationally. This suggests a weaker generational transfer of financial behaviours in Kochi. Additionally, 33 per cent believe financial planning for higher education is unnecessary, while 83 per cent view it as crucial before competitive exams, indicating varied attitudes toward early financial preparation for education.

Health-related uncertainties in Kochi highlight access to healthcare services (56 per cent and mental health (51 per cent) as top concerns. Nationally, the primary concerns are serious illness or injury (62 per cent) and mental health (55 per cent). Business owners in Kochi are more cautious, with 69 per cent confident in their business’s stability and growth, compared to 82 per cent nationally.