The amount of money invested along with the financial goals varies from one person to the other. For a college student, the priority will be to save for her/his future studies. If it is a parent, the priority would be to save enough for their children’s education and marriage, while for senior citizens it will probably be for fulfilling their dreams of visiting new places.
The kind of investments made will also vary according to the age group. For instance, if it is someone young, he/she can take risks and opt for investments such as SIPs, mutual funds, and shares. While if it is a senior citizen or someone who has children, they would opt for safer options even if the returns are lower such as fixed deposits. The true intent of all these investments remains the same - to build a sufficient corpus which would help not just in long-term financial goals but also for covering day to day expenses. By Country Apart from the age, country and demographics also play a crucial role in deciding the investment goals. The differences arise due to the varying attitudes and approaches when it comes to saving money. In India for instance, of the retired individuals only 22% have a diversified investment plan. The number increases to 50% in Brazil and 74% in Australia. By Age There are three age groups who invest for the future which are - Baby Boomers (born in 1945 – 1964), Generation X (born in 1965 – 1980), and Millennials (born in 1980 – 2000). Each of these age group has it own priorities when it comes to investment. For instance more than 65% of the Baby Boomers invest for their retirement more than anything else. For about 40% of the Millennials, retirement is just a priority. The difference between Baby Boomers and Generation X is just 5% when it comes to saving for retirement. Yet the one thing which is common across countries and age groups is the kind of investment which people prefer - safe investments which offer the highest returns. If you are also searching for one, then the best option is to go for fixed deposits. This is because it is not linked to the market and offers guaranteed returns of 8.75%. If you are a senior citizen, you get an additional 0.35%. Most lenders including NBFCs also offer an FD calculator using which you can calculate the amount which you stand to receive at the end of the lock-in period. Also, Read Related Article: How To Investment Goals Vary by Country and Age
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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