Nuclear families have the most financial freedom: Survey

Nuclear families have the most financial freedom, while women are acutely aware about the need for a financial plan, states a recent HDFC Life’s Life Freedom survey. ET Wealth analyses the data.

66.6* Life Freedom Index score in 2019, an increase of 8.7 over 2016.
51.3 Financial Awareness Index (FAI)
71.5 Financial Sufficiency & Adequacy Index (FSI)
73.4 Financial Liberty Index (FLI)
71.9 Financial Planning Index (FPI)

* LFI is a reflection of the individual’s perception and his family’s current and future financial aspects based on their financial plans. It is measured on four indices: Financial Awareness (25%), Financial Sufficiency & Adequacy (50%), Financial Planning (20%) and Financial Liberty (5%).

Nuclear families feel the most free financially
financial-freedom

Financial Sufficiency & Adequacy
Most respondents are highly confident of meeting their financial needs
How confident are you of achieving future financial needs?
financial-sufficiency

Financial Awareness: Stark contrast in priorities of parents and youth
financial-awareness

Metros have the highest financial awareness
Financial Awareness Index

Tier I cities best at financial planning
Financial Sufficiency & Adequacy Index
Women are acutely aware of the need for a financial plan
What best describes your financial planning to meet your and your family’s goals?
financial-plan

Tier I investors are most meticulous about reviewing their plans
How often do you monitor/review your plans?
financial-review

Source: HDFC Life’s ‘Life Freedom Index’. The study was conducted in 2019-20 by Nielsen among 2,049 respondents in 14 metro, tier I and tier II cities. They were divided into four groups: Young Aspirants, Proud Parents, Wisdom Investors and Smart Women.