While around 83 per cent of people agree on the indispensability of financial planning, a surprising 35 per cent have never sought advice from a financial advisor, which is almost like acknowledging the benefits of exercise but never going to the gym, according to Aditya Birla Sun Life Insurance’s (ABSLI) A-Nishchit Index survey conducted in May-June 2024.

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“Uncertainty is no longer an occasional guest in today’s fast-paced world. We have all accepted the fact that it’s a constant companion we have to live with. It has also become a major challenge for a lot of individuals and societies, whether driven by political upheavals, climate change, or rapid technological advancements. As we fight with these complex dynamics, understanding and reducing uncertainty has never been more crucial,” the survey, which saw 7,978 respondents said.

Businesses in India, it said, leverage this growing uncertainty to create tailor-made services, products, and experiences for customers. According to the A-Nishchit Index, there are pockets of uncertainty in the professional and personal lives of people, and businesses, especially in the financial sector, can address these issues.

This survey included salaried employees and business professionals from 20 cities and explored the factors driving feelings of uncertainty among various demographics. The respondents were split into three age categories: Yuva (22-27 years), Grihasta (28-43 years), and Stapith (44-59 years). The findings show the overall impact of uncertainty on professional and personal lives.

Professional Uncertainty

As the professional arena continues to expand, there comes greater job-related uncertainty. According to the A-Nishchit Index, around 35 per cent of salaried employees refer to economic uncertainty as the primary reason for job-related stress. Thirty-four per cent mention technological advancements as a significant contributor to job insecurity. Also, 23 per cent attribute uncertainty in their professional growth to industry or market volatility.

The age-old ideas of job security and linear career progression are fading. While 68 per cent of professionals are uncertain about their career progression, 38 per cent are unsure about the stability of their current jobs. This uncertainty extends to daily work activities, with 50 per cent of professionals facing pressure to join unexpected meetings, and 43 per cent unsure about when tasks will be assigned. To overcome this environment, professionals in India need to be more adaptable, proactive, and resilient. Businesses, too, have a critical role to play to support their employees and customers in managing these uncertainties.

Personal Uncertainty: The Importance Of Financial Planning 

Uncertainty just does not remain confined to the workplace. It extends to personal lives as well. According to the A-Nishchit Index, 59 per cent of working professionals are uncertain about the future health and well-being of themselves and their families. Moreover, 39 per cent remain unsure about their relationship with their families and friends, revealing the larger impact of uncertainty on personal well-being. Education is also an area of concern. Around 83 per cent of respondents believe it is important to financially plan for their children’s higher education after exams. This stresses the importance of financial planning in reducing uncertainty and securing the future for the next generation.

Financial Ecosystem Uncertainty: A Major Challenge

For many individuals, financial uncertainty is a major source of stress and anxiety. The factors that contribute to a growing sense of insecurity include fluctuating income, mounting debt, unexpected expenses, and poor investments. According to the A-Nishchit Index, 35 per cent of respondents have never reviewed their finances and rely solely on professionals to manage their financial well-being. Also, around 88 per cent anticipate greater financial uncertainty in the next five years.

Says Kamlesh Rao, MD and CEO, Aditya Birla Life Insurance Company: “The traditionally stable middle-class population is now acutely aware of potential large-scale uncertainties. These uncertainties necessitate substantial preparedness. Our brand is committed to driving awareness and educating consumers about tools that can help mitigate and manage significant uncertainties.”

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Everyday Finances And Debt: A Major Concern

According to the A-Nishchit Index, everyday finances and debt remain a major concern, such as managing expenses and debt. Even as the economy is on a positive trajectory, there are always daily financial challenges faced by individuals. According to the survey, while major geographical events capture headlines, they rank lower in terms of driving personal uncertainty. For example, job-related uncertainty ranks fifth out of seven concerns. One of the main insights from the report is that many Indians expect to face greater financial uncertainty over the next five years. This anticipated uncertainty is linked to fluctuating income, rising costs, and the challenges of managing debt, which are compounded by inadequate financial planning and a lack of comprehensive financial literacy.

Age And Uncertainty: Different Life Stages

According to the A-Nishchit index, uncertainty impacts different age groups in India. Despite the overall economic growth, all age group cohorts report high levels of personal uncertainty, with issues that affect them directly. For the Yuva cohort (22-27 years), who are just starting their careers, job-related uncertainty and concerns about climate change are equally important. This is more so because this generation is entering the workforce at a time of rapid technological change and they are completely aware of the environmental challenges they inherit. When it comes to the Grihasta cohort (28-43 years), there is an acute experience of personal uncertainty, with a score of 80. As this a life transition marked by big life shifts such as marriage, parenthood, or career advancement, it becomes a pressure for them to balance these responsibilities. For this group, their pressing concerns remain managing family expenses, health, and life insurance needs.