Why women need to plan better for post-retirement life

5 MinsMar 4, 2023

Retirement poses unique challenges for women due to a variety of reasons. These include longer life expectancy, the gender pay gap, and career breaks for caregiving responsibilities. As a result, women are more likely to face financial insecurity during retirement, making it crucial to address these challenges and plan effectively for retirement.

Why women need to plan better for post-retirement life

Gender Wage Gap

  • The National Sample Survey Organisation (NSSO) data shows that in 2011-12, women in India earned only 62.5% of what men earned on average.
  • According to a report by the World Economic Forum, Indian women earn only one-fifth of what men earn over their lifetime.
  • In the technology sector, women earn 20-30% less than men in the same roles, according to a report by the recruitment firm, Belong.
  • A study by the jobs portal 'Monster India' found that women in the healthcare sector earn 27% less than men, while women in the manufacturing sector earn 19% less.
  • A report by the International Labour Organization (ILO) found that the gender wage gap in India is the highest in Asian countries, with women earning 34% less than men.

Caregiving Responsibilities

Caregiving responsibilities during working years refer to the unpaid care and support that you provide to family members or dependents. These responsibilities can include caring for children, elderly parents, or family members with disabilities or chronic illnesses.

Higher Medical Expenses

Women tend to have higher medical expenses in retirement due to longer life expectancy and a greater likelihood of developing chronic conditions. This can lead to higher healthcare costs, which can eat into retirement savings.

Also Read: [Know why you should hold multiple Fixed Deposits]

Living Longer

Women have a longer life expectancy than men, which means they need to plan for a longer retirement. This can be challenging since they need to accumulate more savings and ensure that their money lasts longer.

Being more risk-averse when investing

Women are often more risk-averse when it comes to investing, which can lead to lower investment returns and less money available for retirement. This can be attributed to factors such as less exposure to financial education and social norms that discourage women from taking risks.

Overcoming these challenges

Start saving early:

Women tend to live longer, which means you need more money for retirement. Starting to save early can help you build a significant retirement corpus.

Consider alternative retirement savings options:

If employer-sponsored plans are not available or inadequate, consider contributing to investment options that allow saving for the long term, such as PPF or NPS Accounts.

Address the gender pay gap:

You should work towards closing the gender pay gap by negotiating for fair compensation, asking for promotions and raises, and seeking out career development opportunities.

Plan for caregiving responsibilities:

Women tend to take on more caregiving responsibilities, which can impact their careers and retirement savings. Planning for these responsibilities and exploring options like flexible work arrangements or caregiving support services can help.

Seek professional financial advice:

Consult with a financial advisor to develop a personalised retirement plan that accounts for your unique situations and goals.


The retirement challenges faced by women are real and significant, but they can be overcome with careful planning and a proactive approach. By starting to save early, you can accumulate a sizeable corpus for your golden years. Choose from the wide range of investment options offered by Axis Bank such as Fixed Deposits (select from tenures of 7 days to 10 years) and a wide range of mutual fund schemes (choose from equity, debt, hybrid, solution-oriented, etc). Invest smartly and wisely to build a strong financial foundation and achieve long-term financial security.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision

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