59% Of Working Women In India Do Not Independently Take Their Own Financial Decisions, Reveals Survey

On one hand, India has witnessed a noticeable increase in the proportion of women in the professional sphere, from the ground up to the boardrooms, thanks to many positive factors contributing to this. However, on the other hand, a Tata AIA Life Insurance (Tata AIA) survey about Financial Awareness Among Women reveals that Indian women still shy away from making independent financial decisions.

The survey, which was released this week, also found that working women still rely on the ¡®man of the house¡¯ when it comes to making financial decisions, although 44% of respondents prefer to make their own financial decisions when they have the option to do so.

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The survey was administered to a total sample size of 1000 respondents between the age group of 25-55 years across 18 main cities in India, spanning Metros, Tier 1 & Tier 2 markets.

89% Women Depend On Spouse For Financial Planning

When it comes to marriage and financial planning, the survey findings indicated that 89% of married women depend on their spouses for financial planning.

Before marriage, the father is responsible for the financial decisions for women, which then is tacitly passed on to the husband, post marriage. The survey also mentioned that since the average age of women getting married is 20-22 years, they do not have the liberty of deciding about their finances. Hence, marriage is one of the foremost deterrent factors in impeding the independence in financial decision making for women.

Next comes independence for planning finances. In this regard, for 39% of the women covered in the survey, financial planning is restricted to planning the monthly budget. And out of 42% of the women who have a better understanteding of financial planning, only 12% are homemakers. Also, for most women, being financially independent does not necessarily mean they have the freedom to make their finance related decisions. Among working women, the survey stated that 59% do not independently take decisions on their finances. The ratio is higher in tier 3 markets, where 65% of working women do not take independent financial decisions.

The survey mentioned that this behavior is despite the intense narrative of women empowerment and gender equality that has been extensively deliberated over the decades. Laws against women have also been strengthened, and a positive shift has taken place over the years regarding the position of women in society. Yet when it comes to financial planning, women do not get to call the shots.

As far as the intent towards financial planning is concerned, if given a choice, 44% of women are willing to make their own financial decisions. Encouragingly, in tier-2 markets, women are warming up to the idea of making their own financial decisions. Increased awareness of their rights and a general lifestyle upgrade could contribute to this change, as per the survey.

Also Read: PwC Survey Says 34% Of Indian Employees Want To Change Job

65% Prefer Bank FDs

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When asked about priorities, women prioritise their family¡¯s financial security over themselves. Among the various financial instruments, 62% of the women are more comfortable investing in Bank FDs (fixed deposits) for the benefit of their families. However, when asked about a preference for themselves, they trusted their spouse¡¯s decision.

72% Believe In The Importance Of Life insurance

72% of women believe life insurance is integral to their financial planning post-Covid-19. The respondents from tier-3 cities feel more strongly about this. A savings plan was the most preferred among life insurance products, followed by term insurance. Pension plans and ULIPs are the least preferred options. However, when clearly explained about the different types of life insurance policies, women preferred ULIPs and term insurance solutions.

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75% of respondents said ¡®trust¡¯ is essential and would invest in a company. A detailed understanding of the product is another vital factor in the purchase decision apart from online channels and social media reviews. Further, women are willing to invest in life insurance solutions but expect to pay a lower premium. They also seek guaranteed income through the policy, as per the survey.

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