A recent study conducted by Tata AIA Life Insurance and NielsenIQ found that Generation Z in North India, aged 21-29, are setting new standards in financial protection. The study, titled “New Age Habits, Traditional Values: Gen Z’s Approach to Financial Planning,” discovered that 25% of Gen Z respondents in the region already own term insurance policies, which is one of the highest adoption rates nationwide. This demonstrates a high level of financial awareness and proactivity among young adults in North India.
The study’s key findings reveal that Gen Z in North India prioritize early protection and long-term security. In terms of financial planning, 63% of respondents aim to build an emergency fund as their primary short-term objective, while 50% prioritize adequate retirement savings through life insurance as their key long-term goal. Additionally, 58% of respondents aim for financial independence and early retirement, which is higher than the 47% in South India.
The study also examined investment and spending patterns among Gen Z in North India. It found that 49% of respondents are willing to allocate more than Rs 2,000 monthly for life insurance coverage, and 55% have invested in gold, demonstrating an appreciation for traditional value-preserving assets. Furthermore, 61% of respondents strongly favor conventional savings instruments like fixed and recurring deposits.
When choosing life insurance products, Gen Z in North India prioritize value optimization and tax efficiency. The study also found that 22% of respondents rely on social media platforms like Instagram and YouTube for financial guidance and insights. According to Girish Kalra, Chief Marketing Officer of Tata AIA Life Insurance, the findings suggest that Gen Z in North India are financially aware and proactive in investing, and are committed to empowering them with simplified, tech-led insurance products that support their aspirations and long-term financial well-being.
The study’s conclusions highlight that North India’s Generation Z is redefining protection planning through early adoption of term insurance, balanced investment portfolios, and clear long-term financial objectives. Their sophisticated approach to financial security presents a significant opportunity for insurers to develop tailored solutions that address both their immediate needs and future aspirations. The study surveyed working Gen Z individuals across eight major cities in India, with an equal split between metro and non-metro regions, and an average age of 25. Overall, the study provides valuable insights into the financial habits and priorities of Gen Z in North India, and highlights the importance of developing tailored insurance solutions to meet their unique needs.