Working Women Lag Behind On Financial Planning, HDFC Life Study Finds

For many working women, handling the family’s finances is now part of everyday life. They may be involved in monthly expenses, children’s education, buying a house, or other big decisions. But the HDFC Life study suggests that planning for their own financial future is still falling short in some areas.

HDFC Life’s Ready for Life Report 2025 found a sharp difference between how prepared working women believe they are and their actual financial position. Their self-assessed readiness score was 84, while the score based on their preparedness was only 58 — a gap of 26 points. The report points to insurance and retirement as two areas where more action is needed.

The report is based on a study conducted by Ipsos India through 1,836 face-to-face interviews with working men and women aged between 25 and 55 years. Respondents were drawn from metro cities as well as Tier 2 and Tier 3 locations.

Women Take A Bigger Role In Family Money Decisions

The report shows that women are now more involved in deciding how the family saves and spends. For many working women, financial planning is not limited to meeting monthly expenses or contributing to savings. It increasingly involves planning for major family milestones, including a child’s education and purchasing a home.

According to the report, 40 per cent of working women identified their child’s education as a key savings priority. The corresponding figure for men was 35 per cent. Similarly, 37 per cent of women said home ownership was among their main financial goals, compared to 33 per cent of men.

The report also noted that women’s financial choices are often influenced by recommendations from family, friends, and social networks. This may help them access information and confidence in the early stages of investing or buying financial products. But advice from friends or relatives may not work for everyone. Before buying a financial product, women should check whether it suits their income, goals, and comfort with risk.

Insurance And Retirement Planning Still Need Attention

Many women know that insurance and retirement savings matter, but fewer have taken the required steps.

While working women may understand the need for life insurance, the report points to a gap in the purchase of adequate term cover. Term insurance can play an important role in protecting a family’s finances if the earning member dies prematurely. For women who contribute to household income, pay loans, or fund children’s education, an adequate protection plan can be as important as building investments.

Retirement planning is another concern highlighted in the study. Only 43 per cent of working women said they felt prepared to live after retirement without financial dependence on others. This suggests that many may still need to build a clearer retirement corpus, account for inflation, and plan for future healthcare costs.

Vineet Arora, executive director and chief business officer, HDFC Life, said that the contribution of working women goes beyond household income. He said they are involved in creating financial security and working towards family goals such as home ownership and children’s education, while also needing to plan for their own long-term financial independence.

Vineet Arora, executive director and chief business officer, HDFC Life, said that the contribution of working women goes beyond household income. He said they are involved in creating financial security and working towards family goals such as home ownership and children’s education, while also needing to plan for their own long-term financial independence.

FAQs

Why is term insurance important for working women?

Term cover can help protect the family’s finances if a working woman who contributes to income, loan payments, or children’s expenses dies unexpectedly.

How can working women begin planning for retirement?

They can start with regular investments, estimate future expenses and healthcare needs, and build a separate retirement corpus instead of relying only on family support.

Should women rely on friends or relatives while choosing financial products?

Recommendations can be useful, but the final choice should depend on income, financial goals, existing liabilities, and comfort with risk.