Financial Wellness at Every Career Stage

Achieving Financial Wellness at different Career Stages

Since 2020, corporate India's average annual salary increase has been 9%, while inflation has remained at 6%. At the same time, personal income tax rates have risen to approximately 40%.

In India, the middle class isn't defined solely by salary range but rather by a mix of extrinsic factors. This unique classification has led many companies to focus on mental well-being as part of their corporate offerings. However, it’s equally important to address employees' financial well-being and mental health.

To truly support our employees, it’s essential to recognize how their needs and aspirations evolve. Financial goals and challenges shift at different stages of life, so we should approach financial well-being in phases. These phases can be broadly categorized as follows:

1. Budding: Young professionals earning ≤ 12 lakhs annually, with upto 5 years of work experience.

2. Growing: Professionals earning between 12.75 – 25 lakhs annually, with upto 10 years of experience, entering new life stages with added responsibilities such as EMIs and growing financial commitments.

3. Thriving: Professionals over 35 years old, 10+ years of experience, with responsibilities for retirement and long-term goals, earning 25+ lakhs annually and managing multiple financial obligations including home loans.

For all the three phases, here are some financial parameters to refer to achieve financial wellness -

	Budding	Growing	Thriving
Tax (FY 25-26)	No tax	Comparison between the old and new regime	Old Regime, factor in capital gains
Expense Ratio  (% of salary)	60% - 70%	45% - 60%	35% - 50%
Saving Ratio (% of salary)	10% - 20%	15%-25%	20%-30%
Loan Ratio (% of salary)	Upto 15%	Upto 20%	Upto 30%
Emergency Funds	3 months	6 months	12 months
Health Insurance	5 Lakhs	10 Lakhs	20 Lakhs
Investment Plan	Start small, focus on Compounding	Goal-based Investments	Long Term Investments
Loan	Payback Student Loan/ Avoid others	Short term - Vehicle	Long term - Home

Disclaimer: Every individual's needs, situation, responsibilities, aspirations are different. These parameters should be referred as an input to create personalized plan for employees.

At TrueXwealth, we’ve designed tailored pathways for each of the three career phases mentioned above, helping employees achieve financial security and peace of mind. To learn more about how we can support your financial journey, reach out to us at advisor@truexwealth.com