The contribution of women in the professional sphere has increased of late. There are several positive factors contributing to this. Despite this, they have not become independent when it comes to financial planning. There has also been a positive shift 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.

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A recent survey has revealed that 59 per cent of working women do not make their own financial decisions. Tata AIA Life Insurance (Tata AIA) survey also found that they still rely on the ‘man of the house’ when it comes to making financial decisions. Although 44 per cent of respondents prefer to make their own financial decisions when they have the option to do so.

According to Girish Kalra, Chief Marketing Officer, Tata AIA, there is a lot that needs to be done to involve women more in the financial planning process.

“Understanding our consumers is a critical component of our Consumer Obsession value. Women are an important stakeholder when it comes to financial planning, however very little is known about their preferences and attitude from a financial planning and life insurance perspective. This survey clearly reveals that we have a journey to travel as a society, to involve women more in the financial planning process. At Tata AIA, we will utilize the learning from the survey to introduce women-centric solutions and encourage them to take control of their finances and necessary measures to ensure their own and their family’s financial future, Kalra said. 

Marriage and Financial Planning

89 per cent of married women depend on their spouses for financial planning, revealed the survey. 

"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 found.  

"Since the average age of women getting married is 20-22 years, they do not have the liberty of deciding about their finances. Thus, marriage is one of the foremost deterrent factors in impeding the independence in financial decision making for women," it added.

Independence For Planning Finances

For 39 per cent of the women covered in the survey, financial planning is restricted to planning the monthly budget. Of 42 per cent of the women who have a better understanding of financial planning, only 12 per cent are homemakers. 

According to the survey findings, for most women being financially independent does not necessarily mean they have the freedom to make their finance-related decisions. Among the working women, 59 per cent do not independently take decisions on their finances. The ratio is higher in tier 3 markets, where 65 per cent of working women do not take independent financial decisions.

Intent toward Financial Planning

Given a choice, however, 44 per cent 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.

When asked about priorities, the survey revealed that women prioritise their family’s financial security over themselves. Among the various financial instruments, 62 per cent of the women are more comfortable investing in Bank FDs for the benefit of their families. However, when asked about a preference for themselves, they trusted their spouse’s decision.

Attitude toward Life insurance

72 per cent 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. 

The study 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.