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Posted by admin on 2024-10-03 |

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In a remarkable shift of generational priorities, today's youth in India are navigating two distinct paths - one that emphasizes prudent planning for the future and another that embraces the allure of luxury. The dynamics of the younger demographic are evolving, showcasing a multifaceted approach to life and financial decisions.

Estate Planning Gains Momentum Among the Youth

Traditionally associated with older age groups, estate planning has found an unexpected surge of interest among upwardly mobile and middle-class individuals in their late 30s and early 40s. The catalyst for this trend can be traced back to the pandemic, which prompted a heightened awareness of mortality and the need for comprehensive planning.

Mumbai-based virtual will writing and advisory firm, WillJini, has witnessed a significant uptick, receiving around 7,000 queries in the last six months alone. Surprisingly, four in ten requests originate from individuals in their 30s and 40s. The ease and affordability of the modern will-making process, facilitated by startups, have contributed to the faster adoption of this practice.

Shiv Goyal, founder and CEO of QuickDox, notes that recent reports of sudden cardiac arrests and a 30% increase in mortality among the younger age group (25-44) have fueled concerns, driving the youth to consider their estate planning seriously. The completion of major life milestones, such as acquiring the first house, car, and building substantial savings by the age of 35-40, has prompted many to safeguard their wealth through wills.

Wealth and succession managers are partnering with banks to underscore the importance of wills for the younger population. Financial experts highlight that self-made millennials, propelled by new-age and digital businesses, are seeking disciplined ways to settle their substantial wealth. Whether driven by the responsibility to protect and deploy wealth or to ensure a legacy for the next generation, the motivations behind estate planning vary across individuals.

Rising Trend of Pre-Owned Luxury

Simultaneously, the youth in India are demonstrating a growing appetite for luxury through the purchase of pre-owned items, challenging conventional notions of brand-new exclusivity. Despite global indicators of a luxury market slowdown, Luxepolis, an online marketplace for certified pre-owned and discounted new luxury goods, has reported an impressive 80% growth in sales this year.

Vijay KG, founder of Luxepolis, notes that pre-owned luxury has permeated the mainstream market, with several new businesses entering the space. This trend is not confined to metros, as tier-II and tier-III markets showcase a rising demand for high-end pre-owned products.

Confidential Couture, specializing in luxury handbags, watches, and accessories, experienced a 60% year-on-year sales growth in 2023. CEO Anvita Mehra emphasizes the success of the handbag category, followed by watches and accessories. The advent of experience centers and the combination of e-commerce with physical stores are shaping the future of the pre-owned luxury market in India.

From pre-owned luxury watches to high-end fashion brands like Hermes, Chanel, and Louis Vuitton, the market is diversifying. Sellers, such as LabelCentric, report increased sales and a growing awareness of the investment potential in pre-owned luxury items.

In summary, today's youth in India are forging a unique path, balancing the need for prudent financial planning and estate management with a desire to indulge in luxury. These dual facets reflect the evolving aspirations and financial maturity of a generation that seeks to build a secure future while enjoying the finer things in life.