A survey found that 59% of working women do not make their own choices about their finances.
According to a poll conducted by Tata AIA Life Insurance, even though India has seen a discernible rise in the number of women working in professional capacities, the country’s female population is still reluctant to make autonomous choices about their financial well-being (Tata AIA).
According to the findings of the poll on women’s financial awareness, the majority of women (59%) do not make choices about their money on their own. However, if given the opportunity, just 44% of women would choose to make their own choices about their finances.
The following are some key findings from the survey:
Marriage and the Process of Creating a Financial Plan
According to the results of the poll, an overwhelming majority of married women (89%) rely on their partners for financial planning. Prior to entering into a marriage, a woman’s father is the one who is accountable for making her financial choices. After entering into a marriage, this responsibility is implicitly transferred to the husband. According to the findings of the poll, women do not have the freedom to make decisions about their own money since the average age at which women get married is between 20 and 22 years old. Therefore, marriage is one of the most significant elements that acts as a barrier to the freedom of women in terms of making decisions about their finances.
Independence in terms of financial planning
A monthly budget is the only kind of financial planning that is considered important by 39% of the women who participated in the poll. Only 12% of the women who have a superior grasp of financial planning are homemakers. This is despite the fact that women make up 42% of the population. According to the results of the poll, for the vast majority of women, being financially independent does not automatically imply that they have the freedom to make their own choices about their finances. 59% of working women do not make choices on their own finances without the assistance of a partner or family member. In tier 3 markets, where 65 percent of working women do not make autonomous financial choices, the percentage is greater than in other markets.
This behaviour persists in spite of the persistent narrative of women’s empowerment and gender equality that has been the subject of much discussion over the course of many decades. A good movement has taken place throughout the course of time with respect to the role of women in society, and laws that discriminate against women have been tightened as a result. Women, however, are not given the opportunity to exercise decision-making authority when it comes to the planning of their finances.
Intention towards the Process of Financial Planning
However, if given the opportunity, just 44% of women would choose to make their own choices about their finances. The fact that women in tier-2 markets are becoming more open to the concept of making their own choices about their finances is cause for optimism. This transformation might be contributed to by increased understanding of their rights as well as an overall improvement in their lifestyle.
When questioned about their priorities, the poll found that women place a higher priority on ensuring the financial stability of their families than they do on themselves. When compared to other types of financial instruments, the majority of women (62%) feel most at ease investing in bank fixed deposits (FDs) for the benefit of their family. When questioned about their own personal preference, however, most indicated that they trusted the choice made by their partner.
Regarding one’s stance on life insurance
72% of women say that having life insurance is an essential component of their post-Covid-19 financial planning. The responders who live in tier-3 cities have a stronger opinion about this issue. The most popular choice among the many types of life insurance policies was a savings plan, followed by term insurance. Both pension plans and ULIPs are considered the least desirable of the available alternatives. Women, on the other hand, indicated a preference for ULIPs and term insurance solutions after having the various forms of life insurance plans thoroughly explained to them.
Seventy-five percent of those polled identified “Trust” as one of the most important characteristics in a business partner and said that they are more likely to invest in a reputable organisation. A comprehensive knowledge about the item being purchased is, in addition to internet channels and social media evaluations, an essential component of the choice to make the acquisition. In addition, while women are eager to invest in life insurance solutions, they anticipate the premiums they will pay to be lower. In addition to this, they want a guaranteed income from the coverage.
In response to the results of the poll, Chief Marketing Officer Girish Kalra offered the following commentary: “Understanding our customers is an essential part of our Consumer Obsession value. When it comes to financial planning, women are a key stakeholder; unfortunately, relatively little is known about their preferences and attitudes from the standpoint of financial planning and life insurance. This poll makes it abundantly evident that there is still much work to be done as a society as a whole in order to increase the participation of women in the process of financial planning. We will use what we’ve learned from the survey here at Tata AIA to develop solutions that are centred on the needs of women, and we will urge them to take charge of their financial situation and to take the steps that are essential to protect both their own and their family’s financial future.
eRusaem, a specialised brand research organisation, was commissioned by Tata AIA Life to conduct the poll with the goal of determining the extent to which women have the flexibility to make their own choices about their personal finances. The survey was given to a total sample size of one thousand people across India’s 18 most important cities, including Metros, Tier 1 markets, and Tier 2 markets. Respondents’ ages ranged from 25 to 55 years old.