TomorrowMakers

Are you aware of the multiple challenges women face while trying to build wealth? Read this article to know more.

Women and Money

Financial challenges are a universal experience, but women face unique and often systemic obstacles that make achieving financial stability and security even more difficult. These challenges include the gender pay gap, having fewer savings than men, taking time off work for caregiving, and longer life expectancies. These women’s challenges can contribute to various financial issues for women, including lower retirement savings, higher debt, and greater financial insecurity. This article discusses the challenges women face and possible solutions.

This article covers the following sections:

  • Gender Pay Gap
  • Having fewer savings than men
  • Taking time off for caregiving
  • Longer life expectancy

Gender Pay Gap

The gender pay gap refers to the difference in earnings between men and women in the workforce. It is a complex issue influenced by various factors such as occupational segregation, discrimination, and the effects of motherhood and caregiving responsibilities. According to an article titled "the gender pay gap statistics" published by recruitment firm Randstad, Women in India, for instance, earn 20% less than men. According to an article titled "Women at work: Can we bridge the gender pay gap once and for all?" published on https://www.forbesindia.com/, senior female executives in India, on average, earn Rs85 for every Rs100 that senior male executives earn. 

It is clear from the above paragraph that there is Gender Pay Gap in the country. Article 39 of the Indian constitution advocates equal pay for equal work. Still, more initiatives need to be adopted, such as sensitising companies to ensure equal pay to men and women for a job roles and encouraging flexible work culture to enable women to manage work-life balance.

Also ReadResources for finance professionals

Having fewer savings than men

According to the WTW Global Gender Wealth Equity report (2022), India has the largest gender wealth gap in the Asia Pacific (APAC) region, with a gap of 64%. There can be various reasons for this lack of knowledge about the importance of savings, such as lack of adequate funds, lack of knowledge about available investment options, too much obsession about living in the present, and not being bothered about the future. 

Various initiatives can be taken to promote financial savings by women. 

Government can launch IEC campaigns on television and radio, and banks can bring out schemes to promote saving accounts by women. Corporations can organise educative sessions for female employees to educate them about the importance of saving (both long-term and short-term). These sessions can also include information about Systematic Investment Plans (SIPs).

Also ReadAbout market insights

Taking time off for caregiving

Indian women are often the primary caretakers of their families. They often take longer career breaks during pregnancy to care for their loved ones, illness, or other situations. As a result, they may face reduced opportunities for career advancement and fewer retirement benefits. 

Women can talk to companies about flexible or work-from-home options to achieve work-life balance. Now, companies are more than ever before for hybrid/work-from-home options. These savings can be invested in long-term equity mutual funds or blue-chip companies. The option to work remotely for global organisations also exists.

Longer life expectancy

The data from the World Health Organization, published in 2020, reveals that the average life expectancy in India is 70.8 years. It breaks down to 69.5 years for males and 72.2 years for females. It's important to remember that these numbers are just averages, and individual life expectancies can vary based on lifestyle, genetics, and access to healthcare. These figures prove the probability of females living longer than males is higher. 

Women, if working, should start saving early. Even small amounts saved regularly for a long duration can create a good retirement fund corpus. The husband should save for his wife so that the family doesn't suffer after him. 

Also ReadAbout various investment options

Women's financial problems are not limited to a particular country or region. Women's challenges can be mitigated with combined efforts of the Government, financial institutions, and community. Government must ensure the same pay for the same job profile by bringing out proper legislation. Financial literacy should be part of the school curriculum. With joint initiatives like these, women can take control of their financial futures, achieve greater financial stability, and enjoy a more secure retirement.

Financial challenges are a universal experience, but women face unique and often systemic obstacles that make achieving financial stability and security even more difficult. These challenges include the gender pay gap, having fewer savings than men, taking time off work for caregiving, and longer life expectancies. These women’s challenges can contribute to various financial issues for women, including lower retirement savings, higher debt, and greater financial insecurity. This article discusses the challenges women face and possible solutions.

This article covers the following sections:

  • Gender Pay Gap
  • Having fewer savings than men
  • Taking time off for caregiving
  • Longer life expectancy

Gender Pay Gap

The gender pay gap refers to the difference in earnings between men and women in the workforce. It is a complex issue influenced by various factors such as occupational segregation, discrimination, and the effects of motherhood and caregiving responsibilities. According to an article titled "the gender pay gap statistics" published by recruitment firm Randstad, Women in India, for instance, earn 20% less than men. According to an article titled "Women at work: Can we bridge the gender pay gap once and for all?" published on https://www.forbesindia.com/, senior female executives in India, on average, earn Rs85 for every Rs100 that senior male executives earn. 

It is clear from the above paragraph that there is Gender Pay Gap in the country. Article 39 of the Indian constitution advocates equal pay for equal work. Still, more initiatives need to be adopted, such as sensitising companies to ensure equal pay to men and women for a job roles and encouraging flexible work culture to enable women to manage work-life balance.

Also ReadResources for finance professionals

Having fewer savings than men

According to the WTW Global Gender Wealth Equity report (2022), India has the largest gender wealth gap in the Asia Pacific (APAC) region, with a gap of 64%. There can be various reasons for this lack of knowledge about the importance of savings, such as lack of adequate funds, lack of knowledge about available investment options, too much obsession about living in the present, and not being bothered about the future. 

Various initiatives can be taken to promote financial savings by women. 

Government can launch IEC campaigns on television and radio, and banks can bring out schemes to promote saving accounts by women. Corporations can organise educative sessions for female employees to educate them about the importance of saving (both long-term and short-term). These sessions can also include information about Systematic Investment Plans (SIPs).

Also ReadAbout market insights

Taking time off for caregiving

Indian women are often the primary caretakers of their families. They often take longer career breaks during pregnancy to care for their loved ones, illness, or other situations. As a result, they may face reduced opportunities for career advancement and fewer retirement benefits. 

Women can talk to companies about flexible or work-from-home options to achieve work-life balance. Now, companies are more than ever before for hybrid/work-from-home options. These savings can be invested in long-term equity mutual funds or blue-chip companies. The option to work remotely for global organisations also exists.

Longer life expectancy

The data from the World Health Organization, published in 2020, reveals that the average life expectancy in India is 70.8 years. It breaks down to 69.5 years for males and 72.2 years for females. It's important to remember that these numbers are just averages, and individual life expectancies can vary based on lifestyle, genetics, and access to healthcare. These figures prove the probability of females living longer than males is higher. 

Women, if working, should start saving early. Even small amounts saved regularly for a long duration can create a good retirement fund corpus. The husband should save for his wife so that the family doesn't suffer after him. 

Also ReadAbout various investment options

Women's financial problems are not limited to a particular country or region. Women's challenges can be mitigated with combined efforts of the Government, financial institutions, and community. Government must ensure the same pay for the same job profile by bringing out proper legislation. Financial literacy should be part of the school curriculum. With joint initiatives like these, women can take control of their financial futures, achieve greater financial stability, and enjoy a more secure retirement.