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<div type="image" title="Are Indians depositing less money in banks, or more in mutual funds? Turns out, it&amp;#39;s neither of those." msid="113663806" hostid="261" sizebytes="1121785"></div> Over the past few months, there’s been a lot of brouhaha about the lagging pace of <keyword id="20202062" type="General" weightage="20" keywordseo="bank-deposits" source="keywords">bank deposits</keyword> in India. Simply put, the rate at which Indians are depositing their hard-earned money in banks has been falling constantly, and some blame the increasing financialisation of <keyword id="20751315" type="General" weightage="20" keywordseo="household-savings" source="keywords">household savings</keyword> in the country or the rising preference of Indians towards <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword> and shares. So, the hypothesis is that people are choosing to invest more in mutual funds and the Indian <keyword id="19949641" type="General" weightage="20" keywordseo="equity-markets" source="keywords">equity markets</keyword> through direct investments, IPOs, or NFOs, the money flowing into Indian banks in the form of deposits is slowing down. But is that really the case? <h2>A crisis or a phase?</h2><keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="261" meta.entityid="RBI">RBI</keyword> data suggested that for the quarter ended June 2024, bank deposits grew at 11.7%. On the other hand, credit growth has outpaced this at 15%. This means that the outflow from banks as loans is far greater than the inflow into them in the form of deposits in Q1 of FY 2024-25. The situation largely saw cut-copy-paste in the first week of September as well, with loans registering a 13.3% YoY growth during the period, while deposits rose only 11.1%. This gap has only been widening for the last 3 years. Since deposits are how banks gather assets to further lend and earn interest income as a consequence, even a slight dip could set the alarm bells ringing for banks, and rightfully so. And truth be told, mutual funds are indeed taking on bank deposits in a big way. Per a report by Franklin Templeton, in August 2024, the AUM (assets under management) of Indian mutual funds, or the total funds managed by them, stood at 31.3% of total bank deposits in the country, up from 24.20% during the year-ago period. As of August 2024, the AUM of mutual funds stood at Rs 66.17 lakh crore, an all-time high. But all said and done, is this really the reason why the rate of bank deposits is falling behind? SBI has dismissed this to be a “statistical myth”, and experts point out that since equity and fund houses also keep the cash in their respective bank accounts, there’s no cause for concern. So, is financialization really to be blamed for the trailing tempo of deposits? Or is something else happening behind the scenes? We take a closer look: <h2>First, are household deposits really slowing down? And is that a cause of concern?</h2>Data from Motilal Oswal suggests the contrary. Deposits grew by around 10.4% between March 2020 and August 2024. Data from RBI also highlights that as of August 9, 2024, bank deposits witnessed a YoY growth of 10.8%. The loan-to-deposit ratio for the retail segment, which indicates what percentage of its total deposits the banks lend out as loans, has stayed at 77.5%, above the 77% mark for the tenth straight month. <div type="image" title="Yes, household deposits (as % of total deposits) have dipped, but the drop is far from significant" msid="113663882" hostid="261" sizebytes="306706"></div> Also, we can’t forego the fact that the share of Indian households in bank deposits has indeed slowed down. However, data from Axis AMC shows that the dip is marginal—from 63% in 2022 to 62% in 2023 and 61% in 2024. What has slowed down even more considerably is the share of government deposits in the aggregate bank deposits, which has dipped from 14% in 2018 to 9% in 2024. So, it's not just household deposits, you see. Moreover, as of March 2024, the collective CASA ratio (current and <keyword id="114757" type="General" weightage="20" keywordseo="savings-account" source="Orion">savings account</keyword> deposits) of all commercial banks in India stood at 41.00%, down from 43.1% in March 2023 and 45.2% in March 2022, marking a nearly 5% point decline over the past year, while still staying over the 10-year average of 39.2%. This implies that Indian banks are relying more on higher-cost funds (savings accounts), which can limit their profitability. <h2>What is this financialisation of savings we are talking about?</h2>Then again, there is no doubt about the growing affinity of Indians towards mutual funds and stock markets. Recent data from CBDT (Central Board of Direct Taxes) highlights that India’s net direct tax collection surged by around 22%, driven exclusively by the significant uptick in the collection of Securities Transaction Tax (STT), which doubled to Rs 26,154 crore, from Rs 13,352 crore in the year-ago period. Why does this matter? STT is levied when you buy or sell equity shares on stock exchanges, sell <keyword id="6361918" type="General" weightage="20" keywordseo="equity-mutual-funds" source="Orion">equity mutual funds</keyword>, and trade in futures and options in the equity segment. Such taxes, including the multiple other taxes in equity market investments, are considered as leakages as the money moves out of the economy into government coffers. Data from a ValueQuest report explains that over the last 20 years, the markets have handsomely rewarded the investors, generating over $900 billion in incremental value for them. This is the major driver behind the dramatic rise in investment flowing towards the equity markets. There’s further proof of this budding romance, if you check the demat pudding. The number of demat accounts, which are a primary requisite for participating in the stock markets, also burgeoned by 42.3 lakh in August 2024, taking India’s total tally of demat accounts beyond 17 crore. To put this in perspective, this is almost equivalent to the population of just 8 nations in the world, including China, the US, Brazil and more. Vivek Iyer, Partner, Grant Thornton Bharat thinks it's rather important, as well. “Financialisation of household savings in India is an indication of deepening capital markets in the market, especially from a retail investor standpoint. Bank deposits with a modest rate of return are no longer the only option for savings for investors. Investors today have more avenues for wealth creation in the form of public capital markets, which have democratized wealth creation and provided equality of opportunity to retail investors”, he says. Yes, Indians are investing more and more in the markets, and in mutual funds. But is it a sin to look out for inflation-beating returns, which the stock markets offer, and vanilla bank deposits don't? After all, the allure of 12-13% annual returns offered by <keyword id="45369" type="General" weightage="20" keywordseo="equities" source="Orion">equities</keyword> can certainly pale the stability offered by good old deposits, which generally do not go beyond 9% when it comes to annual returns. But all of this is not what is behind the slowdown. India is still a toddler in the school of savings financialization, with less than 10% of the population holding a demat account, and less than 5% of us saving in equities. That's a drop in the ocean of deposits, far inadequate to trigger a tsunami. <h2>Tell me why lagging deposits have nothing to do with Indians investing more in mutual funds!</h2>Says Shweta Rajani, Head - Mutual Funds, Anand Rathi Wealth Limited, “Households' equity holdings composition grew from 11.1% in FY 23 to 14.7% in FY 24. This trend reflects a growing awareness of investment options, empowering individuals to take control of their financial futures. Despite this transition towards equities, banks still hold a significant share of household financial savings—33.5% in FY24 compared to 34.9% in FY23”. Also, household savings and their subsequent financialization do not have much to do with deposit creation, which is entirely made by banks. What actually drives increased deposits is credit growth or increased lending. When interest rates are eased, people tend to borrow more and spend more, which circulates more money in the economy. For the past 4 years, RBI has been tightening the screws on interest rates, which raises the cost of borrowings, and makes it more expensive to take loans, putting a dampener on credit growth, but effectively curbing inflationary pressures. The last time RBI cut the repo rate by 40 basis points was back in May 2020, 4 years ago. The lag in <keyword id="19998084" type="General" weightage="100" keywordseo="deposit-growth" source="keywords">deposit growth</keyword> we’re witnessing is almost 3 years old. Coincidence much, or just good old economics at work? But with the Fed recently setting a rate cut precedent by slashing 50 bps off its interest rate, RBI is expected to follow suit in the next MPC (Monetary Policy Committee) meeting, scheduled for November 2024. A rate cut would ease the aforementioned high cost of borrowing, and increase loan-taking for corporates and institutional investors, thereby stoking consumption in the economy. And then, deposit creation in banks is likely to return to its former glory. If not, then that would be a curious case to unravel! But that worry is for another day. Do you have insights or personal experience to share on your personal finances or money? Contact us at <a target="_blank" class="c-link" href="mailto:businessinsider@timesinternet.in">businessinsider@timesinternet.in</a>.

Simply Put: A Deposit Dilemma — What's the fuss about a crisis in Indian bank deposits? Are mutual fund investments to blame?

Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword> hailed the seven-year journey of <keyword id="19922145" type="General" weightage="20" keywordseo="Goods-and-Services-Tax" source="keywords">Goods and Services Tax</keyword> (<keyword id="19951327" type="General" weightage="100" keywordseo="GST" source="keywords">GST</keyword>). Quoting a newspaper report, PM tweeted on the social media platform "X" that GST has improved the lives of 140 crore <keyword id="19916609" type="General" weightage="20" keywordseo="Indians" source="keywords">Indians</keyword>. "For us, reforms are a means to improve the lives of 140 crore Indians. After the introduction of GST, goods for household use have become much cheaper." The PM also highlighted that after the implementation of GST, the <keyword id="20044873" type="General" weightage="20" keywordseo="savings" source="keywords">savings</keyword> of the poor and the common man have increased as the GST has reduced <keyword id="20018720" type="General" weightage="20" keywordseo="taxes" source="keywords">taxes</keyword> on various <keyword id="20447338" type="General" weightage="20" keywordseo="household-items" source="keywords">household items</keyword> like flour, curd, detergent, etc. He said, "This has resulted in significant savings for the poor and common man. We are committed to continuing this journey of reforms to transform people's lives". The Goods and Services Tax will complete its seven years on July 1, it was implemented in 2017. After its implementation, the tax has reduced on several products and services used by the common man. As per the Central Board of Indirect Tax and Customs, post GST various daily household items have become cheaper. It includes items like flour, television, detergent, hair oil, soap etc. The GST has amalgamated a large number of central and state taxes into a single tax. It also mitigated the ill effects of cascading or double taxation in a major way and paved the way for a common national market. From the consumers' point of view, the biggest advantage is in terms of reduction in the overall tax burden on goods. The Introduction of GST has also made Indian products more competitive in the domestic and international markets owing to the full neutralisation of input taxes across the value chain of production. On June 22, <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> announced that the next meeting of the Goods and Services Tax (GST) Council is tentatively scheduled for mid-to-late August. The GST Council proposed exemptions for specific services offered by <keyword id="19909154" type="General" weightage="20" keywordseo="Indian-Railways" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian Railways" meta.hostid="261" meta.entityid="Indian Railways">Indian Railways</keyword> to the general public, as well as for intra-railway transactions. The GST Council recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20. This section pertains to cases not involving fraud, suppression, or misstatement. Taxpayers who pay the full tax amount demanded in the notice by March 31, 2025, will benefit from this waiver.The Council approved an extension for availing input tax credit (ITC) on any invoice or debit note.

Seven years of GST has lowered taxes and improved lives of 140 crore Indians: PM

India is poised to remain the fastest-growing major economy in 2024-25, Chief Economic Adviser V Anantha Nageswaran said in a press conference after the tabling of the <keyword id="20613906" type="General" weightage="20" keywordseo="economic-survey" source="keywords">Economic Survey</keyword> in the Parliament on Monday. The Economic Survey tabled today projected India to grow at 6.5-7.0 per cent in 2024-25. Global institutions, including <keyword id="19896779" type="General" weightage="20" keywordseo="IMF" source="keywords" meta.keywordsubtype="org" meta.entityname="IMF" meta.hostid="261" meta.entityid="IMF">IMF</keyword>, OECD, World Bank, S&amp;P, ADB, and Fitch, have projected India to grow in a range of 6.6-7.2 per cent. The International Monetary Fund (IMF), in its latest outlook, has raised India's growth projections for 2024 from 6.8 per cent earlier to 7 per cent, with the country maintaining the fastest-growing status in emerging markets and developing economies. According to official data of the Indian government, the country's GDP grew at an impressive 8.2 per cent during the financial year 2023-24. India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22 respectively. Further, the CEA in his press conference projected that India's <keyword id="20089672" type="General" weightage="20" keywordseo="per-capita-income" source="keywords">per capita income</keyword> is expected to increase from around Rs 2 lakh in 2022-23 to Rs 14.9 lakh in 2046-47. Further, CEA said <keyword id="20751315" type="General" weightage="20" keywordseo="household-savings" source="keywords">household savings</keyword> of Indians in physical assets have been increasing over the past three financial years through 2023-24. The CEA, addressing the press conference, said household savings in physical assets rose from 8 per cent in 2020-21 to 12.9 per cent in 2022-23. "Households are not in distress, they are investing in <keyword id="20792385" type="General" weightage="20" keywordseo="financial-assets" source="keywords">financial assets</keyword> that have done very well. Financial assets of households are not marked to market so households are doing quite well in the aggregate," he said. India needs both banks and capital markets to provide the required finances sourced from a sustained high level of household savings, according to the Survey. <keyword id="20385790" type="General" weightage="20" keywordseo="Union-Finance-Minister" source="keywords">Union Finance Minister</keyword> Nirmala Sitharaman on Monday tabled the economic survey in Parliament, a day ahead of the full Budget presentation for 2024-25. The Economic Survey document, prepared by the Economic Division of the Department of Economic Affairs in the Ministry of Finance and formulated under the supervision of the chief economic adviser, gives insights into the state of the economy and various indicators of 2023-24 (April-March) and some outlook for the current year. The Economy Survey document also gave some idea about the tone and texture of the actual Budget for 2024-25, to be presented on Tuesday. (ANI)

India to remain fastest growing major economy in 2024-25, says CEA Nageswaran

<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, Global brokerage <keyword id="19906485" type="General" weightage="20" keywordseo="goldman-sachs" source="keywords">Goldman Sachs</keyword> has flagged multiple headwinds to deposit growth in Indian banks as it loses its attractiveness. It has cited head winds like strained financial savings, the rise of alternatives such as stock market investments and strong growth in alternate government savings schemes (<keyword id="20699846" type="General" weightage="20" keywordseo="ppf-and-small-savings" source="keywords">PPF and Small Savings</keyword>), size of which has grown to 21 per cent of the total deposits. Interestingly, increase in alternative government savings schemes is equivalent to 34 per cent of the increase in deposits over FY21-23, Goldman Sachs said. It said: "We believe the system would need to offer attractive rates to make bank-deposits attractive. "We believe consumer lending is nearing the consolidation phase driven by large volumes of unsecured lending with an estimated 120mn unsecured personal loans which increased 4X over the last three years; rising financial leverage at <keyword id="20319599" type="General" weightage="20" keywordseo="households" source="keywords">Households</keyword> with gross-financial-liabilities to gross-financial-assets increasing to all time peak of 40 per cent, a sharp reduction in net financial assets (financial savings minus financial assets) from 11 per cent+ of GDP to less than 5 per cent of GDP and deteriorating performance of portfolio on boarded over the last 12 months." Bank deposits also see competition from government small savings investments which have now grown to 20 per cent of the total deposit pool in the system, and offer higher interest rates compared to bank TD. The share of deposits in the household financial asset mix has decreased to only 45 per cent in FY23 (compared to 48 per cent in FY21), with incremental flow of only 35 per cent going towards deposits. This has led to flows of net financial assets as a proportion of GDP to more than halve from FY21 to FY23, Goldman Sachs said. --IANS biz/san/svn

Bank deposits losing attractiveness as govt savings schemes see strong growth

<ul><li>Compared to 15.9 per cent in 2020-21, the gross financial savings of households stood at 10.8 per cent in 2021-22. In the three previous fiscal years, it was 12 per cent.</li><li>According to a consultancy firm, high <keyword id="22195" type="General" weightage="20" keywordseo="inflation" source="Orion">inflation</keyword> has been the major reason behind fall in savings and in order to increase investments, savings need to be encouraged.</li><li>Indian households account for about 60 per cent of the country's savings, but this is falling gradually. </li></ul> Indian households' savings fell to a five-year low in 2021-22 as rising inflation gnawed into the <keyword id="15631502" type="General" weightage="20" keywordseo="purchasing-power-of-the-middle-class" source="Orion">purchasing power of the middle class</keyword>. Also, due to the Coronavirus-induced lockdowns, people were forced to dig into their savings, as the pandemic also led to severe job losses and in the absence of steady incomes, savings were the last resort for people to run their households. Compared to 15.9 per cent in 2020-21, the gross financial savings of households stood at 10.8 per cent in 2021-22. In the three previous fiscal years, it was 12 per cent. Though initially during the lockdowns, people saved their funds, keeping in mind the possibilities of having to spend on healthcare, once the restrictions eased, they went on a spending spree, what economists termed as "revenge spending". This led to depletion of their savings and a situation arose when spendings exceeded income and there were cases when despite having no jobs, expenditures rose, and savings bore the brunt of this excess or revenge spending, economists explained. According to official data, <keyword id="382273" type="General" weightage="20" keywordseo="Household-savings" source="Orion">household savings</keyword> figures were down to 2.5 per cent of the GDP in 2021-22, while share of other savings avenues like insurance, provident fund and pension funds went up to 40 per cent of gross financial savings. In 2021-22, shares and debentures' portion were also at a five-year high of 8.9 per cent, while the share of small savings hit a 16-year high of 13.3 per cent, according to reports. According to a consultancy firm, high inflation has been the major reason behind fall in savings and in order to increase investments, savings need to be encouraged. Indian households account for about 60 per cent of the country's savings, but this is falling gradually. Lower domestic savings exposes borrowers to overseas markets, weakening India's external position and raising external debt. India's savings rate had touched a 15-year-low as gross domestic savings stood at 30.9 per cent of GDP in FY20, down from a peak of 34.6 per cent in FY12. Household savings fell from 23 per cent of GDP in 2012 to 18 per cent in 2019. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/a-year-after-market-debut-paytm-is-the-worst-performer-among-recent-large-ipos-cartrade-policybazaar-and-lic-join-the-party/articleshow/95762071.cms">A year after market debut, Paytm is the worst performer among recent large IPOs – Cartrade, Policybazaar and LIC join the party</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/bikaji-stocks-why-investors-continue-to-snack-on-this-stock/articleshow/95757704.cms">Bikaji Foods: Investors continue to snack on the stock that’s up 35% since listing</a>

Revenge spending effect: Household savings dip to 5 -year low

<ul class="summary-list"><li>The US economy doesn't have any dry powder left as inflation has eaten through household savings.</li><li>Cash savings as a percentage of total consumption have returned to 2019 levels for most Americans.</li></ul>The dry powder of cash savings that was expected to cushion the economy has run out, as inflation has practically wiped out US households' excess savings, according to an analysis from Bespoke.Consumers built up "huge cash balances" during the pandemic, partly due to a pullback in spending as well as government-issued stimulus checks. That cash was thought to be a buffer to the slowing US economy, giving consumers some leeway to keep spending despite tightening financial conditions.But those expectations are actually misplaced, the investment firm said in a note, as inflation has eaten away the spending power of household savings for most Americans.Though households nominally have a higher amount of savings than they did before the pandemic, that picture changes when looking at cash savings as a percentage of total consumption, which factors in the added pressure on consumers from rising prices. When counting money market and deposit assets as a percentage of total consumption, most Americans have the same amount of savings they did in 2019.<h3>Money Market + Deposit Assets, % of Total Consumption, Change From 2019 Average (%)</h3><div type="image" title="Household savings taken as a percentage of consumption" height="389" width="934" msid="106525028" hostid="261" sizebytes="24378"></div>"For all but the highest earning and most wealthy households … cash holdings relative to consumption are basically back to where they were in 2019. In other words, there is no dry powder of cash left to fund consumption growth," the firm said. "That's especially true given the fact that the highest and wealthiest consumers are not cash-constrained for consumption in the first place."Consumers have been flashing other signs that their financial health is starting to deteriorate. Credit card debt hit a fresh all-time high last year. Meanwhile, student loan payments have restarted after a three-year hiatus, meaning <a href="https://www.businessinsider.com/paying-bills-credit-card-debt-student-loans-2023-8">it'll be difficult for many to pay keep paying bills</a> while maintaining a robust pace of spending.A slower pace of spending could spell trouble for the US economy, which still faces a decent risk of recession in 2024. A <a href="https://www.businessinsider.com/economy-consumer-spending-credit-card-debt-delinquencies-retail-hiring-2023-11">pullback in spending could result in a consumer-led slowdown</a>, Macquarie strategists said in a November note.

The economy has run out of dry powder as inflation has slashed excess household savings, investment firm says

<ul class="summary-list"><li>Eva Longoria saved "John Wick" by providing crucial gap financing at the last minute.</li><li>The film faced a financial crisis, risking shutdown before Longoria's intervention.</li></ul>"John Wick" is regarded today as a modern action classic. As it turns out, Eva Longoria played a large part in making that happen.A decade ago, when directors Chad Stahelski and David Leitch were putting the final touches on the Keanu Reeves revenge movie, they received news no filmmaker wants to hear: the production had run out of money."We were less than a week out and we lost almost $6 million on a gap financing," Stahelski <a target="_blank" class="" href="https://www.businessinsider.com/john-wick-keanu-reeves-popularity-chad-stahelski-david-leitch-interview-2024-10">told Business Insider in an interview celebrating the movie's tenth anniversary</a>. "We were financing independently to get the bond, but one of the investors couldn't raise the money in time."By that point, Stahelski, Leitch, and Reeves had put their own money into the movie — producer Basil Iwanyk had even maxed out three credit cards. It seemed like "John Wick" might never see the light of day.But behind the scenes, someone threw a Hail Mary. CAA, which was putting the financing together, offered some of its actors who had bankroll the opportunity to invest, Leitch explained to BI. It promised they'd be the first to get paid back.<div type="image" title="Eva Longoria in a shiny dress" height="2649" width="3532" msid="114478600" hostid="261" sizebytes="560870"></div>Eva Longoria answered the call, and "John Wick" became her first major producer credit.Since becoming a household name on the hit 2000s TV series "Desperate Housewives," Longoria has become a producing power player with her production company, UnbeliEVAable Entertainment, which she founded in 2005 (it was acquired in 2023 by Hyphenate Media Group, which Longoria cofounded). She's since produced the Lifetime series "Devious Maids," which ran from 2013-2016; the 2015 NBC series "Telenovela," and the 2019 ABC series "Grand Hotel.""She came to the rescue and she provided the gap financing, literally less than 24 hours before we had to lock the doors on the movie and walk away," Stahelski said, noting that producer Iwanyk never revealed who came through with the money until after "John Wick" became a hit."Basil took us out to dinner, and we were laughing about all the bullshit that happened, and he said, 'By the way, funny story, you know who gap financed you? Eva Longoria.' We were were like, 'What!'" Stahelski said.<div type="image" title="Chad Stahelski, David Leitch and Keanu Reeves in black suits standing next to each other" height="1993" width="3000" msid="114478599" hostid="261" sizebytes="130254"></div>Stahelski and Leitch had never met Longoria, so they took her to lunch at the Chateau Marmont."She was laughing going, 'I didn't think it was going to work,'" Stahelski said.When Leitch ran into Longoria last year at an event, they couldn't help but talk about "John Wick.""We were reminiscing," he said. "She was like, 'Wow, that was the best money I've ever spent.' It paid back significantly for her." ("John Wick" went on to earn over $86 million worldwide on a $20 million budget.)So, has this opened the door for Longoria to go on screen in an action movie?"She wants to for sure, she wants to do action," Leitch said. "I would love to work with her, we're trying to find something."

Eva Longoria invested $6 million of her own money to save 'John Wick' — and the directors didn't even know

<ul class="summary-list"><li>Some older Americans are sacrificing their life savings to pay for medical treatment.</li><li>It means they can't retire and are struggling to pay their bills or afford groceries.</li></ul>Kimberly Mullen, 61, is couch surfing.She drained her bank accounts paying out of pocket for <a target="_blank" class="" href="https://www.businessinsider.com/4-surprising-medical-costs-how-to-avoid-2023-4">cancer treatments</a> for two years, waiting for <a target="_blank" class="" href="https://www.businessinsider.com/poverty-line-leaves-behind-low-income-americans-snap-medicare-wic-2024-6">Medicare</a> to kick in. Plus, her mother had cancer at the same time."She didn't survive, but I did," Mullen said. "But it cost us our home and all of our life savings and everything — I'd say right around $400,000 between the two of us."Mullen now makes <a target="_blank" class="" href="https://www.businessinsider.com/jobs-labor-market-federal-minimum-wage-raise-small-business-2024-8">$10 an hour</a> cooking part-time at a truck stop in rural Kentucky. She drove trucks for 38 years before her diagnosis and would like to get back on the road, but she'll have to pay for more training. She can't afford a home, and she needs a local address to qualify for affordable housing. She's worried she'll have to work until the <a target="_blank" class="" href="https://www.businessinsider.com/retirement-crisis-social-security-pensions-student-loan-debt-2024-3">day she dies</a>.It's a story all too familiar for <a target="_blank" class="" href="https://www.businessinsider.com/boomer-retirement-social-security-insurance-cancer-diagnosis-2024-7">some older Americans</a>: An unexpected health crisis derails their retirement planning. With insufficient help from health insurance or Social Security, medical bills eat up any savings or income they have."People who are very wealthy, their savings are basically self-insurance," Nancy Altman, the president of advocacy group Social Security Works, told Business Insider. "Healthcare costs in this country are higher than anywhere else in the world, and we pay more for healthcare."Americans over 65 often have two options for health insurance: private market or Medicare. The former is too expensive for many, and the latter can come with high out-of-pocket costs.It's another example of how the retirement crisis is playing out among America's older residents — and a sobering warning for younger workers as retirement savings gaps widen and <a target="_blank" href="https://www.businessinsider.com/rise-in-cancer-among-young-people-under-age-50-charts-2024-3">cancer rates rise</a>.<div type="image" title="A collection of pills on a kitchen sink" height="1601" width="2400" msid="113365910" hostid="261" sizebytes="296448"></div>The American Cancer Society estimates over 2 million new cancer diagnoses and about 600,000 cancer deaths this year in the US, though the cancer mortality rate has fallen since 1991. About 40% of people with a cancer diagnosis deplete their life savings within the first two years, while cancer survivors are 2.7 times more likely to file bankruptcy. This particularly impacts older adults, who are more prone to many cancers and are often ineligible for clinical trials.Plus, Dr. Karen Knudsen, CEO of the American Cancer Society, told BI that financial limitations can hamstring a patient's recovery. "What is very common is either skipping doses for cancer therapy or halving their doses so they can extend the time which their current prescription will allow them to stay on the drug or therapy."Dozens of older Americans told BI in recent months that their <a target="_blank" class="" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">Social Security and pensions</a> aren't enough to get by without working. Some said they have to rely only on Social Security due to health issues, while others said they've taken jobs at Walmart, a hospital, or with Uber to supplement government assistance.For this story, BI spoke to 10 older Americans with health issues. Most of them said they're scraping by due in part to high medical costs. Many have sacrificed vacations, home repairs, or even medical appointments to make ends meet."It could happen to anybody overnight," Mullen said. "Your life could be turned upside down in a split second because you never know if you're going to get sick or you're going to get hurt."<h2 id="63019a77-b62f-410c-bf98-e7708cfc85dc">Medicare doesn't cover it all</h2><div type="image" title="A woman aids her husband by applying a bandange" height="1601" width="2400" msid="113365912" hostid="261" sizebytes="192696"></div>Wendy Jones, 71, is a mother of four who has dealt with various forms of cancer since 2005. For over a decade, she was the family's breadwinner, earning between $70,000 and $90,000 yearly as a paralegal while being a caretaker to her husband, who was injured in 1992 in a workplace accident.When she was diagnosed, finances became a major struggle. Even with insurance, medical payments were hundreds of thousands of dollars each month. Surgeries, ambulance costs, medications, and other emergency expenses have eaten away at their 401(k)s and savings. Recently, they lost their Medicare Part B — she suspects it's because she put money her mom gave her into a savings account, putting her assets over the eligibility threshold. Now she's struggling to afford groceries and essentials.Jones, who gets $2,200 a month in Social Security, has had to take on part-time work, which made her ineligible for some federal assistance."It's a catch-22: People say, just get a job, but I tried that, and everything else was taken away from me," Jones said, noting she will work as long as she can drive, walk, and answer phones. "I didn't get ahead. I wasn't able to save or progress in any way whatsoever."Retirement expert and researcher Teresa Ghilarducci, who chairs the economics department at the New School for Social Research and directs the Schwartz Center for Economic Policy Analysis, said that Medicare is leaving retirees who aren't in poverty but still aren't staying afloat in a tight bind."If you are in the top 10%, your own wealth can take care of those long-term care needs, but it's the middle that is having to go without the care they need or exhausting all forms of wealth or home equity or going into debt to pay for it," Ghilarducci said.An <a target="_blank" href="https://www.kff.org/medicare/issue-brief/medicare-households-spend-more-on-health-care-than-other-households/">analysis</a> from the Kaiser Family Foundation found that, in 2022, Medicare households spent $7,000 on healthcare; non-Medicare households spent just $4,900. Healthcare spending also made up a greater share of Medicare households' spending.That was the case for Rebecca Buffum, 74.Buffum, who works in healthcare, had expected retirement to be a smooth, easy transition. But a cancer diagnosis and multiple years of treatment bulldozed through those plans.She paid for chemo out of pocket, spending her way through her retirement savings and maxing out her credit cards. She racked up what she estimated was around a million dollars in medical bills and ended up declaring bankruptcy.Though she's in remission, she'll have to keep working. Her Social Security covers her mortgage and not much else."I am blessed that, number one, I'm still alive, and number two, that I have the capacity to work," she said. "It's a double-edged sword."<div type="image" title="Rebecca Buffum takes a moment to reflect." height="1600" width="2400" msid="113365906" hostid="261" sizebytes="90784"></div><h2 id="466afe2c-413a-43ac-ac0e-c84fdbdc0379">Making sacrifices and setting a strict grocery budget</h2>Health issues lead some older Americans to skip medical appointments, sacrifice the quality of their diets, and quit their jobs entirely. It means that their illnesses are taking more than their health — the fabric of their lives is changed entirely, leaving many lonely and without the creature comforts that can make life enjoyable.That's a far cry from the vision of retirement many had — and it shows the very real impact of the cracks that some of America's seniors fall into. They might spend their lives living middle-class, only to slide into poverty in their old age.When Marion, 70, quit her job in restaurant management due to health issues, she cashed out her 401(k) early and moved in with her sister and her sister's boyfriend to save money.To supplement the $1,200 in disability she received a month, she started cleaning houses and selling her art.Like many baby boomers BI spoke with, Marion cut back on discretionary spending like vacations, dining out, cosmetic treatments, and new clothes purchases. Others have drastically reduced spending on necessities like healthy food.Robert Papalia, 74, has capped grocery spending for himself and his wife at under $100 a week, rotating through 30 credit cards to afford all their health and housing repair bills. He retired early in 2010 because of his wife's health issues, living on his company's pension and Social Security but struggling to afford medical bills and high property taxes."Do we have money in the bank? Yes. Is it a lot of money? No," Papalia said. "I look at my wallet at the end of the day, and it's a difference between night and day."Leonard Bianconi, 67, can't afford to go out to eat or buy many groceries on his SNAP benefits, so he relies on food pantries. He finds fruits and vegetables often on the precipice of going bad — a major challenge for Bianconi, who's diabetic and needs a fresh diet."Right now, I have no extra money to do anything. My life is pretty lonely. I don't have any money to go anywhere. I can't really do things. Even going to the cinema would be difficult," Bianconi said.<h2 id="299e0d51-1dc1-4501-bd31-4b0cf5476ce9">Feeling grateful and clinging to hope</h2><div type="image" title="Wendy Jones smiles at her husband while he sits on the bed" height="1601" width="2400" msid="113365904" hostid="261" sizebytes="324060"></div>Many of the older Americans who spoke to BI said they're remaining as positive as they can about their futures, with some expecting their conditions to improve.In fact, Gallup found three in four retired Americans think they have enough to live comfortably, even though 45% of non-retirees anticipated coming up short by the time they retire. About 58% of retired Americans noted Social Security is a "major source" of income in their retirement, compared to the 35% of non-retirees who expect Social Security to be a large portion.Monique Morrissey, a senior economist at the left-leaning Economic Policy Institute, said that while more ambitious proposals to reform long-term care haven't passed, the Biden-Harris administration has still <a target="_blank" class="" href="https://businessinsider.com/medicare-drug-price-negotiations-part-d-biden-pharmaceutical-companies-2023-10">made a dent</a> in other pressing issues."In a much more limited way, they have done a lot," Morrissey said, pointing to the administration's success in <a target="_blank" class="" href="https://www.businessinsider.com/bidens-state-of-the-union-abortion-access-prescription-drug-cost-2024-3">lowering prescription drug costs</a>. "There are some things that they've sort of been patching when they can, when they can get Republicans to go along with it, but there are other big gaps in our patchwork system that still need to be addressed."Frank Amend, 63, was working as an engineer and marketing manager when he experienced chest pain two decades ago. Weeks later, he underwent a heart catheterization procedure, followed three years later by a triple bypass.His insurance covered most of his expenses, though he still took a hit. He recovered fast, and he returned to work in 2006. He said he "works for my healthcare" and acknowledged he's "one of the fortunate ones who can retire at 65."Amend recalled standing behind a man who broke down in tears at the pharmacy when he heard his wife's prescriptions would cost $700. From that moment, he knew he wanted to get involved in advocacy work, collaborating with the American Heart Association to assist survivors struggling with medical bills. He helped pass a bill in North Carolina banning smoking in all bars and restaurants, and he's spoken at presidential healthcare task force meetings.Amend said it's crucial for older Americans to believe everything will be OK, noting "your mindset perpetuates what your outcome will be." Still, he said he's playing a small but important part in working toward healthcare equality, given many medications still charge sky-high prices and many Americans are uninsured."The people working two or three jobs to try to put a roof over their family's head and food on the table, they can't afford healthcare," Amend said. "Thank God for Obamacare, but in some cases, it just doesn't cover it."<div type="image" title="Roy speaks to his pet African Gray" height="1800" width="2400" msid="113365915" hostid="261" sizebytes="490476"></div>

Some baby boomers are burning through their retirement savings to pay for cancer treatments. Then they have to go back to work.

The retention lists of all ten franchises for the <keyword id="6354831" type="General" weightage="20" keywordseo="Indian-Premier-League" source="Orion">Indian Premier League</keyword> (<keyword id="6354312" type="General" weightage="100" keywordseo="IPL" source="Orion">IPL</keyword>) season next year were finally unveiled on Thursday, with several big names like Jos Buttler, Aiden Markram, Glenn Maxwell, Faf Du Plessis, KL Rahul, Rishabh <keyword id="19900230" type="General" weightage="20" keywordseo="pant" source="keywords">Pant</keyword>, <keyword id="19904097" type="General" weightage="20" keywordseo="shreyas-iyer" source="keywords">Shreyas Iyer</keyword> etc being let go by their respective franchises. The surprising retentions and releases by all ten franchises have laid down the foundation for what could be an exciting, fun and record-breaking auction later this year. Let us look at several takeways from the auction: <h2>Several captaincy options available</h2> With the release of IPL winning skipper Shreyas Iyer from Kolkata Knight Riders (<keyword id="19924483" type="General" weightage="20" keywordseo="kkr" source="keywords">KKR</keyword>), Rishabh Pant from Delhi Capitals (DC) and KL Rahul from Lucknow Super Giants, three top-class Indian captaincy options are available. <h2>Auction could be defined by wicketkeepers pulling double/triple duties</h2>The announcement of retention lists have seen many wicketkeeping options being released by their respective franchises, including Pant (from DC), KL (from LSG), Ishan Kishan (from Mumbai Indians) and Jos Buttler (from Rajasthan Royals). With all of them having captaincy experience at various levels, including international <keyword id="1521" type="General" weightage="20" keywordseo="Cricket" source="Orion">cricket</keyword> in case of Pant, KL and Buttler, several teams could go after them. Their experience and strong records as wicketkeepers and top-order batters, particularly opening except for Pant, will help teams find a captain, wicketkeeper and an opener in just one player and save them plenty of money. <h2>No English players retained? Could withdrawing/not playing full season be a cause?</h2> No England players have been retained by franchises this team around. Various stars players like Jos Buttler, Liam Livingstone, Jonny Bairstow, Moeen Ali, Sam Curran, Harry Brook, Phil Salt, Will Jacks etc have been let go. These players missed out some part of their season due to international commitments, while Harry Brook pulled out due to personal reasons. England batter Jason Roy pulled out of IPL ahead of this season due to personal reasons. These all developments damaged the team balance at times, with several teams dependent on their overseas talent. Has the habit of not honouring contracts and missing matches caused this move? The hammer strikes at auction could answer this question. <h2>Caribbean power trusted ahead of mega auction</h2>Four of current top West Indies stars, Nicholas Pooran, Shimron Hetmyer, Andre <keyword id="20287010" type="General" weightage="20" keywordseo="russell" source="keywords">Russell</keyword> and Sunil Narine have been retained by their respective franchises. Pooran has dominated the T20 run charts this year, scoring a record-setting 2,251 runs in 68 matches with a century and 15 fifties at a strike rate of 160.90. Hetmyer is one of the best finishers in T20 circuit and Rajasthan Royals trusts in his abilities. Russell (222 runs in nine matches and 19 wickets) and Narine (488 runs and 17 wickets) have also been reaped rewards for their title winning performances last season and their loyalty to KKR brand. While seven West Indies talents have been released, namely, Shai Hope, Sherfane Rutherford, Kyle Mayers, Shamar Joseph, Romario Shepherd, Alzarri Joseph and Rovman Powell, the four modern-day T20 greats keeping their spots safe with the franchise shows how much trust franchise has in Caribbean power. And who knows, the released names could get brought using right-to-match card or find a new home at a higher price. <h2>Another setback for Ishan Kishan?</h2> Five-time champions Mumbai Indians (MI) placed their trust in Indian core, consisting of skipper Hardik Pandya, former captain Rohit Sharma, pacer Jasprit Bumrah, 360-degree hitter Suryakumar Yadav and young left-hander Tilak Varma. It was expected that Ishan could retain his place, given his youth and experience with the franchise. Aged just 26, he had spent seven seasons with the franchise and did reasonably well. However, after being brought for Rs 15.25 crores ahead of 2022 season, the price tag seemed to have caught up with Kishan. In next 44 matches for the franchise till the 2024-season-end, Kishan scored 1,192 runs in 43 innings at an average of 28.98, with just seven fifties. While these numbers are not bad, it could be debatable that he did not deliver as per expectations, with 19 scores being below 20. In the 2024 season, he could score just 320 runs at an average of just over 22, with just a fifty to his name. After being excluded from the Board of Control for Cricket in India (BCCI) central contract this year after not participating for red-ball cricket, this is another big setback for Kishan, who has not been considered for international cricket despite participating and doing well in red-ball tournaments like Buchi Babu Trophy, Duleep Trophy and Ranji Trophy recently. <h2>DC era 2.0 on cards?</h2> With wicketkeeper-batter and biggest superstar of the franchise, Pant released from the franchise and looking for a new franchise as per several media reports, Delhi Capitals could be moving to their 2.0 era, placing trust in young, under-the radar names like Axar Patel (235 runs with two fifties and 11 wickets in 2024), Tristan Stubbs (378 runs with three fifties and three wickets), Abhishek Porel (327 runs with two fifties) and Kuldeep Yadav (16 wickets at an average of 23.25) after good performances last year. Franchise has also released big time stars like David Warner, Mitchell Marsh, Anrich Nortje, Prithvi Shaw. Could this be the start of a new era for DC? Only time will tell. <h2>Shreyas Iyer joins unfortunate list of captains</h2>The IPL winning captain Shreyas Iyer has been let go after winning the title for his franchise KKR this year, their first in a decade and overall third. While many argue his batting stats of 351 runs in 14 innings with two fifties at a strike rate of 146.86 could be a reason behind his release, the other half of the story is that the in-form KKR top-order did not leave the middle-order with much to do. His recurring fitness issues, which caused him to miss 2023 season, also could be a reason. Irrespective of what the reason could be, one thing is for sure, Iyer is up there with likes of Adam Gilchrist (released by Deccan Chargers in 2011 after title win in 2009, semifinal finish in 2010), David Warner (released by Sunrisers Hyderabad ahead of 2022 season despite 2016 title win and multiple playoff finishes) as one of the most unluckiest captains in IPL. <h2>Strong faith in Indian uncapped/inexperienced stars</h2>The franchises have been extremely bold this time around, opting to release experienced, household Indian/overseas names and placing their trust in several Indian uncapped/inexperienced players. Out of a total of 46 players retained across all franchises, 36 players are Indian. Out of these, 10 players are uncapped Indians stars. These players are Abhishek Porel, Rahul Tewatia, Shahrukh Khan, Ramandeep Singh, Harshit Rana, Mohsin Khan, Ayush Badoni, Shashank Singh, Prabhsimran Singh, Yash Dayal. Also, out of other 24 capped Indians, 13 players have played less than 30 international matches and eight have played 10 or less international games for India. Of these 24 uncapped players, no one has all format experience for India and only two have Test cricket experience, Dhruv Jurel and <keyword id="20022019" type="General" weightage="20" keywordseo="rajat-patidar" source="keywords">Rajat Patidar</keyword>. Notably, it is Jurel, who has just played international matches for India, who has received the biggest pay hike, going from Rs 20 lakh this season to Rs 14 crores next season. <h2>End of 'KGF' era for Royal Challengers Bengaluru?</h2> With stars like Faf and Maxwell released, it could spell the end of 'Kohli, Glenn, Faf' (KGF) era for <keyword id="20282652" type="General" weightage="20" keywordseo="rcb" source="keywords">RCB</keyword>, which lasted from 2022-24. During this phase, they all scored heavily for RCB. Despite a lull in 2022 season, Virat scored 1,721 runs in 45 matches and innings at an average of 44.12, with three centuries and 13 fifties. Skipper Faf also scored 1,636 runs in 45 innings at an average of 38.05, with a strike rate of 146.99 and 15 fifties to his name. Maxwell sits at the third spot with 1,266 runs at an average of 28.77 and a strike rate of over 159, with 12 half-centuries in 50 innings. The only player that came closer to the trio was Indian wicketkeeper-batter Dinesh Karthik, who made 796 runs in 44 matches and 42 innings at an average of 29.48, with three fifties. If RCB had Virat-AB de Villiers-Chris Gayle in 2010s, KGF dominated the RCB batting numbers in 2020s. When RCB starts rebuilding their side from scratch in the auction, they would have a huge task in hand of finding one or two highly popular, capable and consistent foreign stars to help Virat unleash the carnage in a "Play Bold" avatar. Also, with the Rajat Patidar being retained for 11 crores, RCB might have made it clear that he could be the next big Indian batter the franchise invests in. His exceptional spin abilities have made a lot of difference for the side. Ever since he was brought by the franchise in 2021 for Rs 20 lakh, Patidar has played 27 matches, scoring 799 runs at an average of 34.73 with a strike rate of 158.84 and having registered a century and seven fifties. A complete list of retained players is as follows: <ul><li>Chennai Super Kings: Ruturaj Gaikwad, Matheesha Pathirana, Shivam Dube, Ravindra Jadeja, MS Dhoni</li><li>Delhi Capitals: Axar Patel, Kuldeep Yadav, Tristan Stubbs, Abhishek Porel</li><li>Gujarat Titans: Rashid Khan, Shubman Gill, Sai Sudharsan, Rahul Tewatia, Shahrukh Khan</li><li>Kolkata Knight Riders: Rinku Singh, Varun Chakaravarthy, Sunil Narine, Andre Russell, Harshit Rana, Ramandeep Singh</li><li>Lucknow Super Giants: Nicholas Pooran, Ravi Bishnoi, Mayank Yadav, Mohsin Khan, Ayush Badoni</li><li>Mumbai Indians: Jasprit Bumrah, Suryakumar Yadav, Hardik Pandya, Rohit Sharma, Tilak Varma</li><li>Punjab Kings: Shashank Singh, Prabhsimran Singh</li><li>Rajasthan Royals: Sanju Samson, Yashaswi Jaiswal, Riyan Parag, Dhruv Jurel, Shimron Hetmyer, Sandeep Sharma</li><li>Royal Challengers Bengaluru: Virat Kohli, Rajat Patidar, Yash Dayal</li><li>Sunrisers Hyderabad: Pat Cummins, Abhishek Sharma, Nitish Kumar Reddy, Heinrich Klaasen, Travis Head.</li></ul>

From spotlight on uncapped stars to big releases, a look at key takeways from latest IPL retention lists

<ul class="summary-list"><li>Savings built up by American households during the pandemic are all but gone, the San Francisco Fed says. </li><li>US household savings have fallen from a record $2.1 trillion in 2021 to around $190 billion as of June, per their data.</li></ul>US households are poised to run out of the excess savings accumulated since the pandemic by as early as the end of September, the San Francisco Fed has warned.Excess household savings in the US have fallen every month for the past 23 months and are poised to run dry in the third quarter, <a href="https://www.frbsf.org/our-district/about/sf-fed-blog/excess-no-more-dwindling-pandemic-savings/" target="_blank" rel="noopener">according to their research</a>. In 2021, Americans had amassed a record $2.1 trillion in excess savings, spurred by government stimulus checks and a drop in in-person spending. But that had fallen to just $190 billion by June, San Francisco Fed research suggested, and is projected to be falling at a rate of $100 billion per month."Our updated estimates suggest that households held less than $190 billion of aggregate excess savings by June. There is considerable uncertainty in the outlook, but we estimate that these excess savings are likely to be depleted during the third quarter of 2023," San Francisco Fed analysts said in a recent blog.As of July 2023, the US personal savings rate stood at <a href="https://fred.stlouisfed.org/series/PSAVERT" target="_blank" rel="noopener">3.5%</a> – below pre-pandemic averages.This measures the percentage of individuals' incomes remaining after paying taxes and spending money on consumption. A drying-up of savings could have wide-ranging effects on the economy, and some analysts believe it would hurt consumer spending, as extra cash runs out and student loan payments restart in October."Our estimate of excess savings for US households when adjusting for inflation is now fully exhausted from a 2021 high of $2.1 trillion, with risk of widening imbalance if outlays accelerate," JPMorgan analyst Marko Kolanovic <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-consumers-spend-down-excess-pandemic-savings-2023-8">said last month</a>. Americans' cash pile has previously kept consumer spending afloat ever since COVID-19 restrictions were relaxed, supporting the economy even as the Federal Reserve raised interest rates steeply since last spring. But historically high inflation since mid-2021 has eaten into the savings, as prices of everything from energy to food surged. Inflation hit a 40-year high of 9.1% in mid-2022, but has since slowed to 3% as of last month, in part tamed by the Fed's aggressive rate hikes.

You Searched For "indian household savings hit" and got 10 results

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From spotlight on uncapped stars to big releases, a look at key takeways from latest IPL retention lists

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