Material aspirations take back seat in pandemic: BankBazaar

In a year when no one is immune to the virus, India has made it very apparent that its primary objective now is relationship. Separated from our loved ones, sometimes by distance, and perhaps by death, we now want community—something we took for granted in the pre-Covid era. In this materialistic age, many people are possessed by their possessions.

However, the pandemic has changed many things along with people’s aspirations. As per India’s premier source of free credit scores and online marketplace for financial products, BankBazaar.com’s fourth edition of the BankBazaar Aspiration Index, the National Index for 2021, is 84.4, up from a dismal 79.9 last year.

The aspiration increased on the back of the most non-material aspirations. That said, the relationship (89.6) has surpassed Health (88.5) as India’s #1 aspiration Bangalore (85.8) was named the most aspired city, closely followed by last year’s winner, Mumbai (85.7).

“This year’s Aspiration Index lays bare the physical, emotional, and financial impact of the pandemic on young India in the last one year. To say that the pandemic has been tough on everyone would be an understatement. Even those who have not been directly affected have felt the strain of living through these times. This is clearly reflected in the way people prioritised their goals for this year and the next,” said Adhil Shetty, co-founder and CEO, BankBazaar.com.

Let’s take a look at nine takeaways from the survey:

1)    According to historical data, ambitions, and readiness to fulfil them vary by age, resulting in three separate cohorts of respondents. BankBazaar categorises these individuals as Early Jobbers (ages 22–27), Moneymooners (ages 28–34), and Wealth Warriors (ages 35-45). Earlier research established a clear distinction between how aspirations change with ageing. This year, Moneymooners and Wealth Warriors’ top objectives stayed the same—relationships, followed by health.

“Early Jobbers flipped the priority, putting health before relationship. Early jobbers are also most conscious of their mental health, and 39% are considering going in for counselling in the coming year,” noted the report.

2)    Despite the setbacks, the outlook for the following year remains optimistic. People are eager to make up for lost time and plan for the future. Deferred ambitions from the previous year, such as purchasing a house, traveling, and starting their own business, are among the top priorities.

Future-proofing goals such as increasing retirement savings and purchasing supplementary insurance and personal care goals such as a greater emphasis on nutrition and fitness are also high on the list. However, the most crucial goal for the coming year puts the pandemic into perspective: spending time with family and friends.

3)    The national aspiration index stood at 84.4, as the Indian working class struggles to recover from the pandemic’s economic and emotional toll. Notably, it has been predominantly motivated by non-materialistic objectives.

4)    Bangalore surpassed the previous year’s leader, Mumbai, as the most aspirational city. While Mumbai ranked first in relationships, Bangalore ranked highest in health. Bangalore also ranked highest in terms of wealth ambition.

5)    Women have continued to do better than men, and their objectives appear to have survived the test of time better than men’s. Women, on the other hand, were more ambitious about health and placed larger importance on wealth. Men, on the other hand, outperformed women in terms of relationship goals. In a surprise reversal of trends, younger women and men of the same age group were more aspirational.

6)    Between economic instability and the resulting losses in life savings, income, and health due to the pandemic, the capacity to set aside income for asset acquisitions and retirement corpus diminished. In aggregate, wealth demonstrated a high level of importance but a low level of readiness.

7)    Early jobbers continue to be the hardest hit, with an average score of 83.7. 60% of early jobbers had their objectives delayed by one to five years as a result of the pandemic. 28% stated that they had lost their jobs and were forced to borrow to support themselves and their family. Almost a quarter was unable to obtain insurance or credit products in a timely manner. All of this may have affected their aspirations.

8)    Socialising (43%) appears to be the overarching topic for the future year as people anticipate the end of the pandemic and the implementation of restrictions. In terms of aspirations, spending time with family and friends (81%) outweighed all other future plans.

9)    Mental health has emerged as the most critical health aim, scoring 90.6 on the importance scale. Maintaining a fitness regimen and eating a nutritious diet come in second and third place, respectively, with a score of roughly 88.

The study was conducted using quantitative research on salaried men and women across prominent Indian cities to better understand their personal financial aspirations. The survey sampled the core salaried population aged 22 to 45. Five areas of life goals were identified: wealth, fame, relationships, personal growth, and health.