The habit of saving grows with age, says a survey, pointing out that people in the age bracket of 56 to 65 years save the most, almost 25 per cent of what they earn.
"The highest savings (in terms of per household) are in the 56-65 age group where savings are Rs 21,196 per household, or 25 per cent of the annual income," said a recent Max New York Life-NCAER survey on 'How India Earns, Spends and Saves'.
The two main factors responsible for higher savings with growing age, according to the survey, were motivation to save and the need to meet old-age requirements. The survey also suggested a direct link between the education and savings by pointing out that households headed by graduates had highest level of savings in both absolute terms and as a percentage of income.
The salaried class households, which constitute only 18 per cent of the total households in the country "accounted for greatest proportion of savings" as compared to other categories of persons, it said.
The survey further said households managed by persons in 56-65 age group, kept bulk (57 per cent) of their savings in liquid assets, though they also parked the surplus funds in shares and debentures.
Interestingly, it pointed out the households headed by persons in the age group of 26-35 years, paid more insurance premium than their senior counterparts.
Households headed by graduates spent more on buying insurance around 10.2 per cent, while merely 3.5 per cent preferred investing in shares or debentures, the survey report said.
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