Millennium Post

Indian households’ economic optimism on the rise: Report

Though there has been an increase in overall optimism about economic outlook as against last year, unemployment, inflation, fuel prices and corruption continue to be top concerns in the economy in the next one year, the report by Principal Financial said.

Except Jaipur, optimism has increased across all 10 cities covered in the study and measured by the Principal Financial Well Being Index in India. There has been significant improvement in Delhi, Mumbai, Bangalore, Pune and Chandigarh, it added.

Moreover, a positive perception of the Indian rupee as against the US dollar also improved compared to last year. Around 22 per cent of the respondents believe that the rupee would gain compared to only 9 per cent of respondents last year.

“It is exciting as well as encouraging to see optimism in Indians, reaching a new high as we enter 2015. While the sentiment is upbeat, it is very crucial for households to continue focusing on taking concrete steps towards building their financial future,” Principal International Country Head - India Rajan Ghotgalkar said.

Overall, respondents feel that they are financially prepared for retirement showing an increase in savings and investments. Children’s goals and buying a house are the top financial priorities across all the age-groups.

The report said that around 49 per cent people claim to know how much money they require post retirement. Only 53 per cent keep inflation in mind for retirement planning.

The Principal Financial Well Being Index, helps to gauge the financial well-being of Indian workers. The study has been conducted along with its research partner Nielsen Company and this is the second year of the study.
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