Grant Thornton Bharat's Financial Resilience Report 2026 finds that 83% of respondents could sustain living expenses for less than a year without income, highlighting vulnerabilities in emergency savings, retirement planning and income diversification.

India's workforce is increasingly confident about its financial position, but a significant gap remains between perceived financial security and the ability to withstand a prolonged income disruption. According to a new survey by Grant Thornton Bharat, 63% of respondents consider themselves financially stable, while 83% say their emergency savings would support them for less than a year if their income stopped.

The findings highlight the financial pressures facing Indian households despite growing participation in investments, insurance and formal financial services. Inflation, family responsibilities, limited income diversification and uncertainty about future earnings continue to challenge long-term financial preparedness.

The report, titled India's Financial Resilience Report 2026: Insights into Income, Savings, Insurance and Household Financial Preparedness, draws on responses from 528 people across different age groups, occupations and geographical locations. The responses were collected between November 2025 and February 2026.

Nearly 87% of respondents work in the private sector, while approximately 71% live in Tier 1 cities. The findings offer insight into how salaried professionals and other workers perceive their financial position and prepare for unexpected expenses, employment disruptions and retirement.

Financial Confidence Does Not Always Translate Into Resilience

The survey reveals a significant distinction between feeling financially secure and having sufficient resources to manage an extended period without earnings.

Although 63% of respondents described themselves as financially stable and confident, 83% said their savings would last less than 12 months if their income stopped. This suggests that many households may remain vulnerable to job losses, medical emergencies or other unexpected financial shocks.

An emergency fund is intended to cover essential expenses during periods when regular income is disrupted. Its adequacy depends on monthly household expenditure, outstanding debt, dependants, insurance coverage and the availability of alternative income sources.

For households with substantial fixed obligations, even several months of savings may be insufficient to provide lasting financial security.

The survey also found that 84% of respondents had fully or partially funded emergency funds. However, the relatively short period for which these savings could sustain them indicates that having an emergency fund does not necessarily mean having adequate financial protection.

Inflation and Salary Dependence Increase Household Pressure

Income growth remains a major concern for India's workforce. Approximately 62% of respondents believe their salary increases will not be sufficient to keep pace with future inflation.

The concern is particularly pronounced among younger workers. Around 70% of respondents aged 25–34 said their income increases would not adequately match future inflation.

Rising living costs can gradually reduce purchasing power even when salaries increase. Expenses related to housing, education, healthcare, transportation and household consumption can absorb a substantial portion of monthly earnings, leaving less money available for savings and investments.

The survey also found that 82% of respondents believe their compensation does not adequately reflect their skills. This proportion rises to 85% among those who identify themselves as experts and 83% among respondents who consider themselves highly skilled.

The findings indicate that financial dissatisfaction extends beyond lower-income groups and includes professionals who believe their earnings do not correspond to their capabilities.

If salary growth fails to keep pace with living costs, households may find it increasingly difficult to build emergency reserves, invest for long-term goals and prepare for retirement.

Heavy Reliance on Salaries Highlights Need for Income Diversification

Dependence on a single income source is another important vulnerability identified in the report.

Approximately 91% of respondents rely on salaries as their primary source of income, while only 29% report receiving income from investments. Fewer than 10% report income from business or self-employment, rental assets or secondary employment.

This concentration creates financial risk because the loss of a job can simultaneously affect household consumption, savings contributions, loan repayments and investment plans.

Income diversification does not necessarily require running a business or taking on additional employment. Depending on an individual's financial circumstances, it may involve developing additional professional skills, establishing a side business, generating rental income or gradually building an investment portfolio.

However, alternative income sources often require time, capital and risk management. Investment income, in particular, is not guaranteed and may fluctuate with market conditions.

The objective is to reduce dependence on a single source of earnings without taking on financial commitments that could weaken household stability.

Women Face Greater Dependence on Employment Income

The survey identified a particularly high dependence on employment income among women.

Around 94% of female respondents rely on employment income, compared with 89% of men. Approximately 69% of women reported having no secondary income source, while 20% said they earned income from investments.

The findings suggest that a large proportion of women may have limited financial buffers if their primary source of earnings is disrupted.

Building independent savings and investments can be particularly important for individuals who face career interruptions, caregiving responsibilities or other constraints on their earning capacity.

Financial preparedness also involves ensuring that insurance policies, savings accounts and investments are accessible to the individual and aligned with their long-term needs.

The survey results highlight the importance of improving financial planning awareness and encouraging greater participation in suitable savings and investment products across different demographic groups.

Family Responsibilities Limit Savings Potential

Household obligations are another factor affecting financial resilience. Approximately 74% of respondents said they supported at least one family member, while 32% identified themselves as the sole financial provider in their household.

Supporting parents, children, spouses or other dependants can significantly influence the amount available for personal savings and investments.

The report also found that respondents in Tier 2 and Tier 3 cities were more likely to support multiple dependants than those living in Tier 1 cities.

When a household depends heavily on one individual's earnings, an unexpected loss of income can affect several family members simultaneously. Fixed expenses, including rent, equated monthly instalments (EMIs), insurance premiums, education costs and healthcare expenses, can further reduce financial flexibility.

For such households, financial planning must account for both personal goals and the needs of dependants.

Maintaining adequate emergency savings, reviewing insurance coverage and avoiding excessive debt can help reduce the pressure associated with unexpected financial obligations.

Retirement Preparedness Remains a Major Weakness

The survey points to substantial gaps in retirement planning, particularly among younger respondents.

Approximately 92% of respondents below the age of 34 reported being unprepared for retirement. Among those aged 35–54, around 77% remained inadequately prepared.

The findings suggest that retirement planning is often postponed despite the importance of starting early. Individuals who delay retirement investments may need to contribute larger amounts later to reach the same financial target, depending on investment returns and the time available.

Retirement preparedness requires more than accumulating savings. Individuals must consider future living expenses, inflation, healthcare costs, life expectancy and the income they may receive from pensions or other assets.

Long-term investment options, including retirement-oriented schemes and diversified investment portfolios, may help individuals prepare for future needs, depending on their circumstances and risk tolerance.

However, market-linked investments can fluctuate, and returns are not assured. A suitable retirement strategy should balance growth opportunities with the need to preserve sufficient resources as retirement approaches.

Insurance Coverage Shows Progress but Leaves Questions

The report presents a mixed picture of insurance preparedness among respondents.

Approximately 61% reported life insurance coverage of ₹50 lakh to ₹1 crore, while 21% had cover below ₹20 lakh. Nearly six in 10 respondents reported health insurance coverage of ₹25 lakh to ₹50 lakh.

Despite these coverage levels, confidence in insurance adequacy varied. Around 61% of respondents believed their health insurance would provide the expected coverage, while confidence in life insurance was comparatively lower.

The survey also found that 16% of respondents did not spend on insurance, medical bills or parental care. Of this group, 91% earned less than ₹15 lakh annually.

These findings underline the importance of assessing insurance coverage against actual financial responsibilities rather than relying only on the size of a policy.

For life insurance, the amount required generally depends on outstanding liabilities, dependants' future expenses and the income that would need to be replaced. Health insurance requirements can vary according to family size, medical history, existing employer-provided coverage and potential healthcare costs.

Insurance can reduce the financial impact of certain unexpected events, but policies have specific terms, exclusions and limits. Reviewing these conditions is an important part of household financial planning.

Market Participation Is Growing, but Preparedness Still Lags

The survey found that 61% of respondents invested in market-linked products, including stocks, cryptocurrencies and mutual funds.

Among investors, mutual funds were the most widely held investment product, with 82% reporting exposure. Direct equity and stock investments were reported by 23% of investors.

The findings indicate growing participation in financial markets, but investment participation alone does not guarantee financial resilience.

Investors may hold market-linked assets while lacking sufficient cash reserves to manage an immediate emergency. They may also face difficulties if they need to sell investments during a market downturn to meet household expenses.

A balanced financial plan generally separates short-term liquidity needs from long-term investment goals. Money required for near-term obligations may need to be held in relatively accessible and lower-volatility instruments, while longer-term investments can be structured according to an individual's goals and risk tolerance.

The report also found that 69% of respondents occasionally used artificial intelligence tools to obtain market insights. This points to growing interest in technology-assisted financial decision-making.

However, AI-generated information should be evaluated carefully. Investors should verify important claims, understand the risks of financial products and avoid making decisions solely on the basis of automated suggestions or unverified online information.

Practical Steps to Strengthen Financial Resilience

The survey's findings highlight several areas where households can improve their financial preparedness.

Build an adequate emergency fund: Calculate essential monthly expenses and establish a savings target that reflects household obligations, employment stability and the number of dependants.

Review debt commitments: High EMIs and other fixed payments can reduce flexibility during income disruptions. Borrowing decisions should account for repayment capacity and the possibility of unexpected expenses.

Diversify income carefully: Additional professional skills, a side business or suitable investments may provide alternatives to salary income, although none guarantees additional earnings.

Review insurance coverage: Assess life and health insurance against current responsibilities, existing protection and potential financial liabilities.

Start retirement planning early: Establish clear long-term goals and make regular contributions to suitable retirement and investment products.

Separate short-term savings from long-term investments: Maintaining accessible emergency reserves can reduce the need to sell market-linked investments during unfavourable conditions.

Use financial technology responsibly: Digital tools can help with budgeting and research, but important decisions should be based on verified information and an understanding of the risks involved.

Financial Confidence Must Be Backed by Financial Planning

Ramkumar Subramanian, partner in Financial Services Risk Advisory at Grant Thornton Bharat, highlighted the distinction between financial confidence and financial resilience.

The survey findings indicate that while respondents are increasingly participating in formal financial systems, many continue to face pressure from inflation, family responsibilities, retirement preparedness and dependence on a single income source.

The broader challenge is to convert growing participation in investments and insurance into a more comprehensive approach to household financial security.

For individuals, this means looking beyond current income and investment balances to assess how long they could manage without earnings, whether their insurance is adequate and whether their savings are aligned with future obligations.

For employers and financial services providers, the findings also highlight opportunities to improve financial education, workplace financial wellness initiatives and access to appropriate savings and protection products.

Market Outlook

The survey highlights a growing need for stronger household financial planning in India as workers navigate inflation, rising responsibilities and uncertainty over future earnings. Although participation in mutual funds and other market-linked investments is increasing, the ability to withstand an income shock remains a critical measure of financial health.

For the financial services sector, these gaps may create opportunities to expand financial education, insurance coverage, retirement planning and suitable investment solutions. However, improving resilience will require more than increasing product participation; households also need adequate emergency savings, manageable debt and a clear understanding of their long-term financial needs.

The central takeaway is that financial security should not be measured solely by salary levels or investment ownership. The ability to meet essential expenses, manage unexpected disruptions and remain on track towards future goals is equally important.