Despite high income, HNIs in India struggle with financial goals like retirement planning, childrens education: Report

Mint

5 days ago

New Delhi [India], June 5 (ANI): Despite India's booming economy and a strong bull run in the markets, a large number of High Net-Worth Individuals (HNIs) in India are falling short of achieving their financial goals.
The "India Wealth Survey 2025," conducted by Marcellus Investment and Dun & Bradstreet, revealed a worrying picture of limited savings, heavy debt burdens, and lack of financial planning among wealthy individuals.
The report said, "In spite of a record-breaking bull run, Indian HNIs remain frustrated by their limited success".
As per the survey report, one of the key takeaways is that many HNIs, despite high incomes, are not saving enough. About 43 per cent of HNIs are saving less than 20 per cent of their post-tax income, and the issue is worse among those aged between 30 to 45, half of whom fall into this category.
Additionally, 4 out of 10 HNIs reported having at least one active loan, and among the younger group (30-45 years), 50 per cent are burdened with loans. This financial stress is limiting their ability to plan for major life goals like retirement, children's education, or home purchases.
The survey, which covered 465 respondents across metro, Tier 1 and Tier 2 cities, focused on individuals over the age of 30 with post-tax incomes above ₹ 20 lakh annually.
The report showed that HNIs have high aspirations, 75 per cent aim to fund their children's education and marriage, 40 per cent wish to buy a house or start a business, and many desire early retirement. However, only a few have a structured financial plan in place.
It also highlighted that real estate continues to dominate asset allocation, with over half of HNIs having more than 20 per cent of their wealth in property (excluding their primary residence), while only a third have the same proportion in equities. A significant 14 per cent do not maintain any emergency fund, and nearly a quarter are not familiar with global investing.
While 87 per cent of HNIs depend on external financial advisors, a worrying two-thirds of them are unhappy with the advice they receive.
Many complain that advisors push products for commissions, don't offer personalized advice, and fail to explain the rationale behind investment choices.
The report stated, "The advisor doesn't fully understand my needs, and their recommendations are not tailored to my unique situation."
Encouragingly, 82 per cent of HNIs believe that professional financial planning can help them better achieve their goals. They seek advisors who can offer personalized asset allocation based on their specific goals and risk tolerance, assist with planning major life events, and provide unbiased and transparent advice.
To address these issues, the report proposed a three-step solution, free personalized goal planning and asset allocation, access to diversified portfolios (including global equities), and continuous handholding and support throughout the investment journey.
The report painted a clear picture: HNIs in India need to save more, diversify better, and seek reliable, personalized financial advice to turn their aspirations into achievable goals. (ANI)