An annual income of Rs 10 lakh may place individuals in the top 15% of earners in India. However, for women, this income may still not be sufficient to achieve financial independence, according to a study conducted by DBS and Crisil. The study revealed that women who are financially independent are typically either over the age of 45 or earn more than Rs 40 lakh per year.

The study also indicated that the city in which women reside plays a significant role in determining their financial independence. Chennai, known for its high-paying IT jobs and cosmopolitan work culture, saw 72% of women confidently making financial decisions. On the other hand, Coimbatore, despite its economic growth, had only 31% of women taking independent financial decisions. Delhi had 65% of women steering their own financial decisions, while Gurugram had only 44%.

The study underscores the need for policy changes to address the gender pay gap and increase women’s participation in the workforce. As of now, only 37% of women are part of the Indian labor force. The study’s insights have implications for policymakers, the financial sector, and society as a whole, according to DBS Bank India MD & CEO Surojit Shome.

The study also revealed that financial independence tends to increase with age. This could be attributed to experience and a better understanding of financial products. Affluence also plays a significant role, with 58% of women earning a yearly income of Rs 41-55 lakh making their own financial decisions compared to 38% in the semi-affluent category (Rs 10-25 lakh per year).

The study also looked at the financial priorities of respondents. In the western region, the top priority was to own or upgrade homes, while in the northern region, retirement planning took precedence. The eastern and southern regions prioritized children’s education.

Overall, the study emphasizes the factors of age, affluence, and address in shaping women’s financial freedom in India.