63% of Indian workers feel financially confident despite thin savings: Grant Thornton
Synopsis
Six in ten Indian workers feel financially confident — but four in five would exhaust their emergency savings within a year if income stopped. A new Grant Thornton Bharat report lays bare a dangerous gap between perceived financial security and actual resilience, with 92% of workers under 34 unprepared for retirement and women facing the sharpest income diversification deficit.
Key Takeaways
63 per cent of Indian workers consider themselves financially stable, according to a Grant Thornton Bharat report released on 27 October 2026 .
83 per cent of respondents said emergency savings would last less than a year without income.
92 per cent of workers below age 34 are unprepared for retirement.
62 per cent believe salary hikes are insufficient to keep pace with inflation; the figure rises to 70 per cent among those aged 25–34 .
94 per cent of women rely solely on salary income, versus 89 per cent of men; 69 per cent of women have no secondary income source.
Only 29 per cent of respondents earn any investment income, and fewer than 10 per cent have income from business, rentals, or secondary employment.
Nearly 63 per cent of Indian workers describe themselves as financially stable and confident — yet 83 per cent admit their emergency savings would run out in under a year if their income stopped, according to a new report by Grant Thornton Bharat released on Tuesday, 27 October 2026. The findings expose a striking gap between perceived financial wellbeing and actual resilience among India's salaried workforce.
Key Findings from the Report
The report reveals that 91 per cent of respondents rely on employment income as their sole or primary source of earnings, while 74 per cent support at least one dependent family member. Perhaps most starkly, 92 per cent of respondents below the age of 34 were found to be unprepared for retirement — a figure that points to a looming long-term financial crisis among younger workers.
Income adequacy also emerged as a pressing concern. Around 62 per cent of respondents believe salary increments are insufficient to keep pace with future inflation. That figure climbs to 70 per cent among those aged 25–34. Separately, nearly 82 per cent felt their compensation did not adequately reflect their skill levels.
Heavy Dependence on a Single Income Source
The data underscores a fragile income structure among Indian workers. Only 29 per cent earned any investment income, and fewer than 10 per cent received income from business activities, rental properties, or secondary employment. This concentration risk means that a single job loss or health emergency could destabilise the finances of the majority of respondents.
The gender gap in income diversification is particularly pronounced. Among women, 94 per cent rely on salary as their primary income source, compared with 89 per cent of men. Additionally, 69 per cent of women reported having no secondary income source at all, and only 20 per cent earned any income from investments.
Retirement the Biggest Blind Spot
The report identifies retirement planning as the single largest financial blind spot for Indian workers. This comes even as respondents show growing engagement with savings, investment products, and insurance — suggesting awareness without adequate action. Investors are reportedly increasingly embracing market-linked instruments and artificial intelligence tools for market insights, the report noted.
On the insurance front, nearly 61 per cent reported life insurance coverage between ₹50 lakh and ₹1 crore, while 21 per cent held coverage below ₹20 lakh. Health insurance penetration appears relatively stronger, with close to six in ten respondents reporting coverage between ₹25 lakh and ₹50 lakh, and 61 per cent expressing confidence in their policy's adequacy.
What Experts Say
'As financial markets become more accessible and participation continues to expand, preparedness, protection and long-term sustainability will become increasingly important measures of financial resilience,' said Ramkumar Subramanian, Partner, Financial Services Risk Advisory, Grant Thornton Bharat.
What This Means Going Forward
This comes amid India's broader financial inclusion push and rising retail participation in equity markets — yet the data suggests that access alone has not translated into preparedness. With inflation pressures persisting and household dependencies high, financial literacy and diversification will be critical levers for India's working population in the years ahead.
Frequently Asked Questions
What did the Grant Thornton Bharat financial report on Indian workers find?
The report found that while nearly 63 per cent of Indian workers feel financially confident, 83 per cent said their emergency savings would last less than a year if their income stopped. It also highlighted heavy dependence on a single income source and a major retirement preparedness gap, particularly among workers under 34.
How prepared are younger Indian workers for retirement?
According to the Grant Thornton Bharat report, 92 per cent of respondents below the age of 34 are unprepared for retirement. The report identifies retirement as the single biggest financial blind spot for India's workforce.
Are Indian workers earning enough to keep pace with inflation?
No, according to the report. Around 62 per cent of respondents believe salary increases are insufficient to match future inflation, and that figure rises to 70 per cent among those aged 25–34. Nearly 82 per cent also felt their compensation did not reflect their skill levels.
How does income diversification differ between men and women in India?
The gap is significant. Around 94 per cent of women rely entirely on salary as their primary income source, compared with 89 per cent of men. Additionally, 69 per cent of women reported no secondary income at all, and only 20 per cent earned income from investments.
What is the state of insurance coverage among Indian workers?
Nearly 61 per cent of respondents have life insurance coverage between ₹50 lakh and ₹1 crore, while 21 per cent hold coverage below ₹20 lakh. Health insurance penetration is relatively stronger, with close to six in ten reporting coverage between ₹25 lakh and ₹50 lakh.
