CHENNAI: Urban women have a misplaced sense of financial security and liberty, as they do not plan for the unexpected, a study conducted by HDFC Life and Value Notes has found. The nationwide study, covering 11 cities and 400 urban women between the age of 25 and 40, calculated the Life Freedom Index of these women, factoring awareness, planning, sufficiency, adequacy and liberty.Tier 1 cities included Bengaluru, Chennai, Delhi, Kolkata and Mumbai; Tier 2 cities covered were Ahmedabad, Bhopal, Indore, Bhubaneswar, Kochi and Ludhiana.The study placed urban women at a Life Freedom Index score of 58.3, out of a maximum score of 100.While 17% of the respondents were found to be extremely disciplined in their financial planning, 22% believe that they have a comprehensive financial plan.Only 13% realign plans with all significant events in life, while a majority (68%) realign only for events like marriage, childbirth or higher education.The study also found that women in Tier 2 cities fare better in financial planning than women in Tier 1 cities. Sanjay Tripathy, Executive Vice President and Head, Marketing and Direct Channel of HDFC Life, attributes this to the more stable spending environment in the Tier 2 cities, and also the growing cost of living in Tier 1 cities.“Since the variables are lower, there is more financial discipline,” he said.Married women fared higher on the Financial Sufficiency and Financial Adequacy Index at 62.7 and 63.0 respectively.Speaking to reporters at a press conference, Sanjay said, “Since married women usually contribute as the second income to the household, they do not have to worry about having sufficient funds.” On the Financial Liberty Index, the study shows that women have a false sense of financial liberty. However, this does not seem to affect their feeling of liberty.Although the sample size is relatively small, the methodology used gives the company a 95% confidence level, said a spokesperson for HDFC Life.
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