In spite of rapid economic growth and an increase in the number of women obtaining higher education over the past decades, the condition of women in terms of making financial, and work related decisions, although not completely dismal, is also not good.
Discrimination is one of the most significant obstacles on the path of women’s economic advancement. According to the findings of the “Global Wage Report 2020-21” released by the International Labour Organization (ILO), the pandemic had a disproportionately negative impact on the incomes of women when compared to those of their male counterparts.
The already-existing gender pay gap widened as a result of a larger income decline for women following the pandemic. The survey also highlighted that despite the apparent improvement that India has been making, the gender pay gap is still relatively low compared to international standards.
Even though India is developing in terms of women’s employment, women are still hesitant to make financial decisions on their own, finds a survey conducted by Tata AIA Life Insurance about Financial Awareness Among Women showing that nearly 59% of women do not take their financial decisions by themselves.
Planning Finances
- According to the findings of the study, 39 percent of all the women who participated in the survey did financial planning but the matters restricted to only monthly budgeting.
- While 42% of women claimed to have a good understanding of financial planning, but only 12% of these women were found to be homemakers, suggesting a low level of financial autonomy among women who stay at home.
- The situation is no better for women in the workforce. Of the total women working, 59% of them do not take independent financial decisions.
- Contrary to the popular belief, the study analysed that being financially independent does not necessarily mean that women also obtained the liberty to take decisions.
- However, the study also noted that if given a choice, 44% of women are willing to make their own decision regarding finances. More women in the tier 2 markets are inclined towards the idea of managing their own finances.
Financial Priorities
- 62% of women feel most comfortable in investing in Bank Fixed Deposits, as they prioritize financial benefits of their families. The study found that women are more concerned about the financial security of their families.
- However, when asked to make decisions regarding financial planning, they shy away from it and trust their spouse’s judgments.
Financial Planning Post-Marriage
- The survey found that 89% of married women rely on their partners for financial planning.
- Women’s financial decisions are made by their fathers before marriage and then passed on to their spouses.
- The study also revealed that due to the average marriage age of girls being around 20-22 years old, they can not make their own financial decisions.
- Thus, marriage has a major role to play in the curtailment of liberty for women to take their own financial decisions.
Life Insurance
- Post-pandemic, seventy-two percent of women think life insurance should be an essential part of the financial planning. This opinion is more prevalent among tier 3 cities’ respondents.
- Saving plans were mostly preferred by women as their first choice. Additionally, term insurance was preferred. Pensions and ULIPs were found to be unpopular among them.
- Surprisingly, when presented with the various plans, most women preferred ULIPs and term insurance.
This sums up the study. However, women’s preferences in matters relating to finances and their perceptions of life insurance are still not known widely. There exclusion from financial planning in their families is a well-known factor in the society. Even after being financially independent, women continue to face hesitance to take their own decisions.
These results come after decades of efforts towards women empowerment to remove income inequality and other forms of discrimination in the workforce.
India still has a long way to go to make its women financially independent as well as bold enough to rely on their own financial decisions.
