According to a survey by Tata AIA Life Insurance (Tata AIA), India may have witnessed a noticeable increase in the proportion of women in the professional sphere, but they still shy away from making independent financial decisions.
The survey about Financial Awareness Among Women indicated that 89 per cent of married women depend on their spouses for financial planning. 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.
The survey further revealed that given a choice, 44 per cent 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.
Commenting on survey findings, Girish Kalra, chief marketing officer, commented, “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." Tata AIA Life commissioned the survey to specialised brand research firm eRusaem to gauge the financial awareness amongst women and the freedom to make their own decisions. The study was administered to a total sample size of 1,000 respondents between the age group of 25-55 years across 18 main cities in India, spanning metros, tier 1 & tier 2 markets.