Gen Z: A report has revealed that India’s Gen Z generation is very active in earning money and investing, but they are still dependent on their parents for one thing. Which is his biggest mistake.
New Delhi: Today’s young generation, i.e. Gen Z, is far ahead in terms of making money, but when it comes to their security, they are left behind. According to a new report, almost 51% of Gen Z youth are investing heavily in mutual funds and systematic investment plans (SIP), but they are still dependent on their parents’ insurance. Because of this they are delaying in making their own security cover.
According to this research report by Bajaj Capital, 29% of the youth of this generation use financial apps for information and 26% follow influencers. However, his discovery remains limited to research only. Despite having the information, the number of people actually purchasing the policy is very less.
Youth are active investors, but financial foundation is weak
A shocking thing has come to light in the report. Even though these young people are active investors, their financial foundation is quite weak. About 65% of Gen Z youth can lose all their savings due to any one major medical emergency.
At the same time, the remaining 35% feel that they are completely protected by their parents’ or company’s policy, but in reality they are under-protected, that is, they are not adequately protected. This is the class that looks rich on paper due to their growing investment portfolio, but even a single major health incident can derail their entire financial planning.
Gen Z not alert about security
Venkatesh Naidu, CEO, Bajaj Capital Insurance Broking Limited, said, “The data has made clear what we had suspected. India is taking insurance, but not at the speed and adequacy that is required. The youth are saving a lot, but are not alert about security.”
What is the real benefit of insurance?
She added, “Women are economically independent, yet dependent on others for insurance decisions. And across all groups, protection in a real crisis costs more than people believe their policies cover.”
It has been said in the report that the reason for postponing insurance is not that the youth reject it, but rather they do not feel the immediate need for it. They see returns in mutual funds and feel their money growing, but the real benefit of insurance is understood only at the time of claim.
What is the first thing people do when an emergency occurs?
- For this reason, they avoid taking their own personal insurance for 5 to 7 years. According to the report, if a medical emergency occurs, 24% people will use their fixed deposits or savings, 14% will borrow from family, 9% will sell their investments at losses and 6% will take a loan.
- “This is not a crisis of information. This is a crisis of confidence, autonomy, advice and design. And all these can be solved,” Naidu said.
- The report emphasizes that Gen Z is very money savvy, understands market fluctuations and handles them well. But in the case of insurance, this pattern is completely reversed, where they depend on others and believe what they hear.