REVOLUTION IN FINANCIAL PLANNING AFTER PANDEMIC

Background: The pandemic has created a noticeable difference in the financial capacities of many individuals. Due
to the uncertainties of life, employment, investment returns due to market volatility and other financial burden in the
form of loans and EMIs, has made it necessary for them to objectively focus on the effective financial planning to deal
with the uncertainties like pandemic.
Purpose: This study is conducted to see the difference in outlook towards financial planning after pandemic.
Methodology: The research is conducted thorough cross-sectional study to collect the information about individuals’
perception. Likert based structured questionnaire is made to collect the primary data of respondents. Factor Analysis
and Descriptive statistics is being used for the detailed analysis of the study. 

Results: The results of factor analysis show that, pandemic has made people realised the importance of separate
emergency fund to meet with future uncertainties. The KMO value of 0.796 is indicating the high internal consistency
among the items asked. The total variance explained by factor analysis is approximately 85%. People have understood
the need of self- financial dependency to safe guard against the job insecurity, family insurance and for mental health.
Moreover, the adoption of different investment pattern during normal and pandemic situation also has accelerated
after pandemic. Statistical results also show that even after realising the intense impact of pandemic, majority of them
(approx. 74%) has not purchased the Corona Kavach or any such Mediclaim policy due to liquidity crunches. Further,
the change in selection of investment avenue for normal and pandemic course has been noticed in the analysis.
Conclusion: It can be concluded that people have realised the importance of separate emergency fund to meet with
future uncertainties and accordingly, investment avenues are given preference while allocating money for different
situations.