Working women driving family finances, but preparedness gap remains: Report

New Delhi: Working women in India are emerging as key financial decision-makers within households, playing a growing role in shaping long-term family goals such as children's education and home ownership. However, a significant gap remains between their perceived financial readiness and actual preparedness, according to the HDFC Life Ready for Life Report 2025.

The report reveals that while working women recorded a perceived financial readiness score of 84, their actual preparedness stood at just 58, exposing a substantial 26-point gap between confidence and reality.

Conducted by market research firm Ipsos India, the study found that women are increasingly contributing not only to household income but also to critical financial decisions. Around 40 per cent of women identified their children's education as a primary savings goal, compared to 35 per cent of men, while 37 per cent prioritised home ownership against 33 per cent of their male counterparts.

The findings underline the growing influence of women in steering household aspirations and financial planning. However, the report points to shortcomings in areas such as financial protection and retirement planning.

Despite awareness about financial security, many women have yet to take adequate steps towards purchasing term insurance, the report noted. Retirement preparedness also remains a concern, with only 43 per cent of working women expressing confidence about living independently after retirement without relying on others financially.

The study observed that women's financial decisions are often shaped by social recommendations and informal networks, highlighting the need for greater access to structured financial advice and planning tools.

Commenting on the findings, Vineet Arora, Executive Director and Chief Business Officer at HDFC Life, said the contribution of working women extends far beyond supplementing household income.

"A working woman is responsible for creating financial security and building towards key life goals such as homeownership and children's education. At the same time, she needs to plan ahead for her long-term financial security and retirement independence," Arora said.

He added that life insurance solutions are designed to address financial needs across different stages of life and expressed confidence that increasing awareness and informed decision-making would help more women become financially prepared.

The Ready for Life Index 2025 is HDFC Life's proprietary research initiative and is based on 1,836 face-to-face interviews with working men and women aged between 25 and 55 years across metropolitan, Tier-2 and Tier-3 cities. The study evaluates life readiness across four pillars — financial planning, emergency preparedness, health and well-being, and retirement strategy.

According to the report, bridging the gap between perception and preparedness will require a shift from short-term saving habits to structured long-term financial planning. As women continue to assume greater responsibility in family finances, strengthening access to protection-led financial products and retirement planning solutions will be crucial for building financially resilient households.

Tags : HDFC, Working Women, market research, financial planning, emergency preparedness, health