Most Indian women still depend on ‘man of the house’ for financial planning decisions: Tata AIA survey | India is blooming
Indian women are still hesitant to make independent financial decisions and 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 making them. have the opportunity, reveals a Tata AIA survey.
The Women’s Financial Awareness Survey shows that 89% of married women depend on their spouse for financial planning.
Before marriage, a father is responsible for a wife’s financial decisions, which are then tacitly passed on to the husband after marriage.
The survey also indicated that since the average age of women getting married is 20 to 22, they do not have the freedom to decide on their finances.
Thus, marriage is one of the major deterrents to hindering women’s independence in financial decision-making.
For 39% of the women surveyed, financial planning is limited to planning the monthly budget.
Of the 42% of women who better understand financial planning, only 12% are housewives.
According to the survey results, for most women, being financially independent does not necessarily mean that they have the freedom to make their financial decisions.
Among working women, 59% do not independently make decisions about their finances.
The ratio is higher in Tier 3 markets, where 65% of working women do not make independent financial decisions.
“This behavior is despite the intense narrative of women’s empowerment and gender equality that has been widely debated over the decades. Laws against women have also been strengthened and positive change has occurred at the over the years regarding the position of women in society. Yet when it comes to financial planning, women are not allowed to make the decisions,” the survey noted.
However, given the 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 improvement in the way of life could contribute to this change.
When asked about priorities, the survey found that women prioritize their family’s financial security over themselves.
Among the various financial instruments, 62% of women are more comfortable investing in bank FDs for the benefit of their family.
However, when asked about a preference for themselves, they trusted their spouse’s decision.
Up to 72% of women think life insurance is an integral part of their financial planning after COVID-19.
Respondents from Tier 3 cities are more convinced of this. Among life insurance products, the savings plan was the most preferred, 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 prefer ULIPs and term insurance solutions.
Seventy-five percent of respondents said “trust” was key and that they would invest in a company they can trust.
A detailed understanding of the product is another vital factor in the purchase decision aside from online channels and social media reviews.
Additionally, women are willing to invest in life insurance solutions but expect to pay a lower premium.
They are also looking for guaranteed income through the policy.
Commenting on the survey results, Girish Kalra, Chief Marketing Officer, said, “Understanding our consumers is a critical part of our Consumer Obsession value. Women are an important stakeholder in financial planning, but very little is known about their preferences and attitude towards financial planning and life insurance.
“This survey clearly reveals that we have a journey to travel as a company, to involve women more in the financial planning process. At Tata AIA, we will use the learnings from the survey to introduce women-centric solutions and encourage them to take control of their finances and take the necessary steps to secure their own financial future and that of their family.
Tata AIA Life commissioned the survey from specialist brand research firm eRusaem to assess women’s financial awareness and freedom to make their own decisions.
The study was administered to a total sample of 1000 respondents aged between 25 and 55 in 18 major cities in India, covering Metros, Tier 1 and Tier 2 markets.