In the ever evolving times of today, women too have joined the bandwagon towards securing their independent stand within the society. From venturing into male-centric career fields to excelling within other already established fields, women are right in the forefront. However, it is also important that they prioritize financial security to build an independent and enjoyable lifestyle over the years. Despite having strong budgeting skills, women today continue to settle without an elaborate savings plan.
There is a trend within the society that indicates that men save more than women. The savings scale of men is pitted much higher in comparison with women. This prevalence can be attributed to the glass ceiling. Here are some reasons that explain why a woman is likely to make lesser savings than a man:
Glass ceiling – There is a very wide gender pay gap. According to the statistics of the Monster Salary Index (MSI), women earn 20 percent less salary than men. Additionally, the gap increases as the two gender-professionals go up the experience-ladder. Earning less than men only leads women to contribute a much lesser percentage towards savings.
Fewer work years – While the practices are expected to blur in the coming years, women still take a backseat in their career for child and family care. During these years, they are unable to make earnings and in turn, savings. Even when they rejoin the workforce, it causes a hit back on their expected salary. Women are also more likely to opt for an early retirement as compared with men. The reason could be the need for spending more time with family. This factor further damages the long-term corpus.
Family providers – There is a growth in women turning into breadwinners of the family. Not only do they provide for themselves, but also serve the financial needs of their household. The stress of being the breadwinner can have a direct effect on her savings plan.
Women should be proactive in their savings, just as well as their male counterparts. The society that we live within demands that women too generate investments driven by savings. Fortunately, there are several special schemes designed to encourage investments among women, apart from the different investment options available to all. Females can also put their money into special women-centric schemes. A good way to go by is to start a women’s savings account. These accounts come with numerous benefits that include lockers, easy payment methods, discounts and privileges, debit card facilities and much more. Voluntarily Provident Fund, Mutual Funds, Tax-saving Fixed Deposits and Life insurance plans are other feasible saving options for women.