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9 in 10 Indians Fear Running Out of Savings: Case Study

Running Out of Savings


People always have this insatiable need to have a savings fund for their future which by all means is the right thing to do. For this, they often choose a savings plan or retirement plan as a backup fund. And in case of an emergency, they utilize these funds. But due to several reasons, 9 out of every 10 people in India fear running out of savings. This is a much worse case for the urban population, who depend on savings for sustenance. Here you will know everything about the causes of these fear and remedies to avoid putting yourself in such similar situations.

Top 6 Causes of Financial Worries

Financial worries during uncertain times are common. But sometimes, even minor things are enough to nudge a person towards mental distress. However, the worries of these people are genuine as necessary savings are the only thing providing financial safety for the future. There are several occasions when people fear that their savings funds won’t be enough or will deplete. Below are six familiar occasions where people fear running out of savings.

Day-By-Day Increasing Inflation Rates

Rising inflation rates are something to fear. Because when the inflation rate increases without any significant increase in income, it will deplete the savings. And people who have limited savings are always afraid of this.

Seeing Someone Face Such Savings Shortages

Seeing someone you know go through a financial crisis can trigger this fear. Several people start having this fear when they see someone leading the same lifestyle as they go through a financial crisis. And the closer the relationship with the person, the more will be the fear of something same happening to them. They always think that if this problem of savings running out can happen to them, it can also happen to me.

High Cost of Living

People who have a high cost of living also fear their savings running out. They see from their day-to-day lives how much excessive money they require for sustenance and worry about what would happen if their income or savings cease. And as they are more dependent on money, their fear is also extreme and rational.

Limited Income

People with limited income are always vulnerable to most financial adversities. And when something like that occurs, they have to rely on their savings, well, if they have one. With the high expenses of a family, these savings also deplete fast enough, so they fear a lot for their savings. Several people live with limited income in India, more so between the middle class and the below poverty line categories. This makes up a huge number of families and is the major reason why the ratio of people who fear running out of savings is so high.

Multiple Dependents

A person with several dependents also has this fear. When they have spouses, elder parents, dependent relatives, and children, their expenses are the person’s responsibility. So, the income they generate is the only livelihood for several people. And with so many things to take care of, such as high expenses of living, healthcare for elders, and education for children, the risk factor also increases intensively. So, any emergency could easily result in higher expenses and savings running out.

Increased Responsibilities and Debts

People with several responsibilities and debts have greater fear for their savings. They have some fixed expenses in the form of business payments, repayments, or debts. And if they don’t have a fixed income flow, these expenses can easily savour all their savings.


If any of the occasions mentioned above apply to you, there is no need to worry. Because for every problem, there is a solution. And the solution to every financial woe is to invest in investment and savings plans. Below are some best savings plans that allow even as low as INR 500 of investment per annum. You can use any of these to increase your savings funds, so you will never have to worry about them running out again.

  • Government Savings Plans
  • High-Returns-High-Risk Investment Plans
  • Retirement Plans
  • Insurance Plans
  • Post Office Savings Schemes
  • Banking Instruments

You can make wise investment choices if you clearly understand the remedies to avoid the fear of the savings running out. Investing your excess money in any of these funds will ensure funds growth rather than just keeping it aside as savings in cash or banks. Life insurance plans have the highest benefits among all these savings plans.

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