According to a recent study, age and affluence plays a major role in the financial freedom of women in India. If you are a woman, you may need to significantly earn higher than the opposite gender to gain complete financial freedom.
While earning above ₹10 lakh per annum places you in the top tier of the working class in India, it is still not enough to gain financial independence if you are a woman, recent survey results reported by Times of India show.
A survey by DBS and Crisil, quoted by TOI in its report, shows that a woman who has financial freedom in India is typically over the age of 45 and has a yearly salary of over ₹40 lakh per annum. Another important factor in this study is the city that these women choose to live in.
According to the DBS and Crisil study, 47 percent of the women who earn over ₹10 lakh per annum said that they take financially independent decisions, while the number remained lower for those living in tier 2 towns (41 percent).
Meanwhile, women earning over ₹40 lakh had the highest percentage of those who enjoy financial freedom in India (65 percent). The survey also highlighted that the participation of women in the Indian workforce is currently just 37 percent.
Keeping in mind these statistics, the gender pay gap between men and women is not decreasing fast enough. To further decrease this pay gap, there needs to be an immediate change in financial sector, policy making and society in general.
Affluence a major factor in financial freedom
One of the most significant factors in the financial freedom and financial equality for women comes from affluence, TOI said in its report. The study shows that nearly 58 percent women with an income of ₹41-50 lakhs per annum make their own financial calls, when they are from affluent backgrounds.
Meanwhile, for the not so affluent or semi-affluent women, this percentage drops down to just 38 percent. This disparity in financial freedom can be attributed to affluent women have more education and resources.
When it comes to cities, Chennai has the most number of women who take financial decisions for themselves (72 percent), while around 65 percent women in Delhi deem themselves financially independent.