CHAPTER - 1

INTRODUCTION

1
INTRODUCTION

Retirement planning is a thing that every individual faces once in life time, receive
required income for basic expense after an individual leaves the workforce behind is the
main objective behind planning for retirement which every individual should have. Many
individual starts working on their retirement plan at an early age as and when they start
earning while others are still unaware about how much is it important to have a plan for
retirement or have the income source after retirement. The need of emergency funds can
rise any moment after one retires thus preparing for those types of situation is necessary for
every working individual. Retirement planning includes identifying different sources,
estimating expenses, investing in the plans, managing risk etc. Many researchers have
found that very few people are having financial knowledge or financial literacy regarding
the retirement plans which are available, while rest of believe that there is not adequate
information available in the market, or they are not having any idea or are still confused in
which plan they should invest. A Study found that while 76 percent of working age people
in India expect a comfortable retired life, only 33 percent are actually putting aside money
to fund that phase of life. In future there can be the opportunity available for many
researchers to have a study on the different avenues which are or will be available in the
market for retirement investment, which can provide the best return to its investors. After
this study it might be possible to have a study on the requirement plans which individual
seeks to have for their retirement in future. In this study we focus on the awareness level of
individuals regarding the retirement planning and what are the factors they think affects
their investment. There are number of factors that work as barrier for investment planning,
different people have different barriers, so aiming to identify all those barriers also
identifying different avenues which individuals prefer to have investment and believes that
the avenue is best for retirement investment. The scope of this study is limited to certain
parts only.

Money is the means to acquire goods and services to take care of necessities of life and
lead comfortable life. An individual has a work life of approximately 38 years (22 years to
60 years). The income earned during this period needs to be managed prudently to take
care for current responsibilities as well as save to take care of golden years of retired life.
In case financial planning for retirement is not done, many elderly cannot afford to retire
2
and need to extend their work life. A report on Global Human Capital, by World Economic
Forum, states that only 12 percent of working age population is under pension program.
Individuals not covered by pension scheme, need to depend on their family members for
the support. Therefore, young working population of India will have to take care of their
children needs as well as their parents’ needs. When individuals start their work life, at that
time they feel it is too early to think about retirement and prefer to spend and save only for
goal in immediate future and it might be too late to save for retirement. Reserve Bank’s
report on household finance (April, 2016) reveals that, seventy-seven of the Indians do not
have retirement plan. In India, social and economic demographic factors are changing
rapidly. Few examples of social changes are, shift from joint family system to nuclear
family system, literacy levels are increasing, life expectancy is increasing, sixty-five
percent of Indians are below the age of 35 years. Economic changes can be noticed in rapid
digitization, introduction of Goods and Service Tax, foreign direct investment, intellectual
property laws to name a few. Among such demographic changes if an individual does not
do financial planning for retirement, then it might result in hardship in old age. Many
studies have been undertaken to understand the influence of social attitude and personality
traits to understand individual behaviour towards savings and financial planning for
retirement, but such studies have failed to predict the individual’s behaviour. General
attitude and motivation of the individual would indicate individual’s intention to save
(Icek, 1991). But when it comes to taking action in this respect, there are many other
behavioural factors which influence individual’s behaviour. To plan for retirement an
individual must understand various financial products, their advantages and issues, clarity
in financial goals are few dimensions which can clubbed under term ‘financial literacy’,
has influence on financial planning for retirement

3
1.1 - Steps for RETIREMENT PLANNING

Step 1: Decide Your Retirement Age

The most common retirement age is 60 years, but it may vary from person to person.

Some may wish to work beyond 60 years of age, while a few even wish to retire at 55 ––
basically it's a matter of choice.

Estimating your retirement age is an important step, because after this age your regular
income stream will stop or at least reduce considerably (in case you are eligible for
pension). You will have to depend on your savings and investments to take care of your
retirement needs.

This is also the timeframe you are left with to plan for retirement.

For instance, if you are 25 years old and you wish to retire at the age of 50 years, then
years to retirement = 50-25=25years.

One of the important factors while deciding your retirement age is the life expectancy rate.
In other word the estimated number of years you are expected to live based on the age,
medical condition, family history and other demographic factors

Step 2: Start Early to Retire Peacefully

Like any other goal, start planning your retirement as soon as possible. With several years
in hand, you have time and the power of compounding in your favour.

Never delay retirement planning or else you might have to compromise your goal. Worst
case you might have to be financially dependent on your children or family. Hence, start
early, start now.

Most individuals who are in their 20s and having recently started earning might think that
retirement is a distant reality. For them, planning for retirement at this early age may seem
like being overly cautious.

However, it is imperative for you to recognise that being young provides you a benefit that
is not available to all, 'time'.  As it is said, "the early bird gets a bigger pie".

4
Step 3: Determine Your Retirement Corpus

Retirement corpus is the amount you require post retirement to meet your expenses and
continue with the same lifestyle and maybe pursue your other personal goals.

For this, first ascertain your annual expenses at present.

For that you need to first write down monthly expenses on various categories such as
household, medical, entertainment, travel, EMI, and children's school/tuition fees, and so
on.

So, it is important that you make an accurate estimate of how much amount you will
require, to maintain your present lifestyle after you retire.

Step 4: Calculate the Future Value Of Your Current Savings

How much you are able to save every year, after meeting all your expenses, plays a crucial
role in building your retirement corpus.

Your saving is the surplus amount that is left after deducting your annual expenses from
your net salary.

The ideal way is, to earmark a portion of your savings towards retirement. This part of
your saving should be treated as sacred and should not be disturbed unless it is very urgent.

After estimating how much amount you will be able to save annually towards your
retirement corpus, the next step is to find out its future value.

To determine this, you have to factor in the expected rate of return on your investment.
This is the value of your savings or investments at the time of retirement.

Step 5: Cut Down on Unnecessary Expenses

If you are unable to save now to reach the target, cut down on avoidable expenses. Some of
the avoidable expenses are your weekly entertainment, impulsive purchases, dining out,
foreign vacation, etc.

Cutting down on such expenses can help you invest more and reach closer to your targeted
corpus.

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Step 6: Plan and Create An Ideal Portfolio Seeking Help Of A Financial Planner

Depending on your current age and the risk that you can afford to take, you should define a
standard allocation to each asset class.

It is important to have a diversified investment portfolio across the asset classes.

Some assets like equities have the ability to offer you a better inflation-adjusted return
(also known as real rate of return) than fixed income instrument can provide safety. Gold
can be a store of value and act as an insurance in your portfolio.

Simplified Employee Pension (SEP) Plans

If you’re a self-employed individual looking to save for retirement, then the SEP plan may
be the best option for you. This account, which can only be opened by a business owner
with one or more employees or someone who earns freelance income, is similar to a
traditional IRA in that pre-tax contributions reduce your taxable income (or the company’s
depending on who is contributing) and money can grow tax-deferred until you remove it in
retirement

Stocks for growth

The majority of savers still buy stocks – either directly or through a mutual fund or
exchange-traded fund – which are shares in a publicly listed company.

Bonds for safety

Bonds are another popular investment for savers as they can move a lot less in price than
stocks. Investors lend money to a government or company in exchange for an annual
payment based on a predetermined interest rate. At the end of that bond’s term — usually
between one and 30 years — you get back your original investment. 

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Alternative asset classes

There are many other investments to choose from and most experts recommend holding
about 5% to 10% of assets in things other than stocks or bonds. Gold is a popular
investment because the yellow metal’s price tends to rise during recessions and in big
market declines. Depending on your level of sophistication, you can also purchase other
kinds of commodities, like oil or silver, or dabble in futures and options. It’s a good idea to
talk to a professional before making any outside-the-box investment decisions.

National Pension Scheme

National Pension System (NPS) is a voluntary, defined contribution retirement savings

scheme designed to enable the subscribers to make optimum decisions regarding their
future through systematic savings during their working life. NPS seeks to inculcate the
habit of saving for retirement amongst the citizens. It is an attempt towards finding a
sustainable solution to the problem of providing adequate retirement income to every
citizen of India.

Under NPS, individual savings are pooled in to a pension fund which are invested by
PFRDA regulated professional fund managers as per the approved investment guidelines in
to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures
and Shares. These contributions would grow and accumulate over the years, depending on
the returns earned on the investment made.

At the time of normal exit from NPS, the subscribers may use the accumulated pension
wealth under the scheme to purchase a life annuity from a PFRDA empaneled Life
Insurance Company apart from withdrawing a part of the accumulated pension wealth as
lump-sum, if they choose so.

Step 7: Track and Review Your Plan Regularly

Your retirement plan needs to be monitored at regular intervals (at least once a year) to
make sure you are on target to meet your objectives. Any changes in the income, expenses,
retirement age, etc. needs to be incorporated in the retirement plan.

Also, make sure the retirement plan meets your investment objectives in the changing
market scenario.
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1.2 - Needs and Scope

Everyone likes to enjoy financial independence in working as well as retired phase of life.
A Retirement plan focuses on taking care of the financial expenses in the post-retirement
phase with the help of accumulated funds. A regular premium retirement plan builds
financial corpus, which would be utilized to give you pension money to enjoy the same
financial independence in the post-retirement phase as well.

The retirement plan also offers a death benefit to the family in case of an unfortunate and
untimely demise of the life insured. The retirement plan consist of two phases which are the
Accumulation phase (where you pay regular premiums to create a corpus) and the
Distribution phase (where you consume the accumulated corpus in the form of a pension).

Here are some solid reasons why pension plans are a must-invest:

· Inculcates a Savings Habit

A retirement plan is a dedicated plan to accumulate a corpus that would take care of the
post-retirement finances also known as pension plans. A retirement plan ensures that you
pay the premiums timely to keep your retirement plan active. Regular allocation in the
form of premium ensures you save the requisite amount periodically to gift yourself a
worry-free and financially capable retirement.

The earlier you start accumulating for your retirement corpus, the more robust corpus you
can build.

· Gain from Compounding

Compounding is a brilliant way to build wealth in the long term. Compounding implies
generating earnings on your previous earnings. The more time you give to your
investments, the power of compounding will enable it to grow bigger and larger.
Retirement plans will offer you the option to invest in the form of a premium and build a
retirement corpus with the power of compounding. The longer you stay invested, the larger
you are likely to create your retirement corpus.

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Offers a Flexible and Scalable Investment Plan along with Insurance

A retirement plan is a combination of investment plus insurance plan. It is a special

category of insurance plans which are designed to meet the post-retirement financial needs.
It offers you the platform to accumulate your savings to build your retirement corpus.

Pension plans range from traditional to a unit-linked retirement plan. Based on the risk
capability of the investor one can choose the investment portfolio ranging from aggressive
to balance to conservative. It allows you to build your retirement corpus along with
ensuring financial protection for your loved ones. With an increase in income, one can also
increase the savings in the form of a top-up premium under unit-linked retirement cum
insurance plan.

· Safeguards the Interests of Loved Ones

Your life is precious for your loved ones and especially if you are the sole bread earner of
the family. During your working years, you ensure that you save enough to meet the short
term and longterm financial goals of your family.

Along with the investment, the retirement plan enables you to safeguard your dependents
financially with its insurance component. In the event of an unfortunate demise of the life
insured, the nominee is compensated with the accrued death benefit.

Best retirement plans offer you ample flexibility and good returns to accumulate a concrete
retirement fund to live life independently with no financial dependence.

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 CHAPTER 2

LITERATURE REVIEW

10
2.1 - Literature Review

1) Nurul Faezah Mohd. Talib (2017) The research regarding retirement behaviour was
carried out among the employees of ‘Employees Provident Fund’ (EPF). The study is
interesting as EPF is a government agency in Malaysia, which is in charge of managing
savings of private sector employees for retirement. The study considered ‘self-awareness’,
‘organization role’ and ‘environmental factors’ as independent variables, dependent
variable being ‘retirement planning behaviour. It is worth noting that 71 percent of the
respondents never followed any retirement plan even though all of them agreed that
retirement plan would help them to have secured retired life with regular income. There is
no correlation between self-awareness and retirement planning as employees are aware of
the financial needs after retirement but have very little financial literacy.

2) (Prof. Suyog chachad, 2018) in their research paper” Are you making yourself
retirement ready- A study on salaried individual” has focused on the need and importance
of retirement planning and it also highlights the awareness and behavior pattern of
individuals towards retirement. The result showed that individuals do not plan for their
retirement; they also need to have some financial education programs to have the
awareness and learn importance of retirement.

3) In study on individual retirement planning behavior they studied the individual

preferences towards retirement along with the satisfaction level of the investment made by
individual, which concluded that the sources most influence people's decision about
retirement planning are-Family, Friends, Self-Research and Work, it also found that there
are 50% people believe that there is no adequate knowledge for retirement planning in
market. It shows that only 30-40% people invest for their retirement. According to this
paper there are different avenues which respondents prefer to have retirement investment.
(Smruti Vakil, 2019) 4. (Parveen Kumar, 2017)in their study found that many people are
aware about the retirement planning and according to them the factor which mainly
influence is living expense and expected inflation. It also shows that the people are aware

11
about risk and return and they properly understood the inflation rate but are less aware
about diversification. It also highlighted that some people start investment in the age of 31-

4) (Dr. Swati Modi, 2019) The objectives of this study were to examine the retirement
planning behavior of working individuals. The findings of this research support the
research model in which potential conflict in retirement planning, attitude toward
retirement and retirement goal clarity are the significant predictors of retirement planning
behavior. The results of this study have implications for working individuals to do early
planning for retirement to enable them to have a strong financial base after retirement.

5) 10 (Michael Ntanlianis, 2011) In this study an investigation is conducted into the views
of retirement fund members regarding elements of financial education resources made
available to them through their retirement fund. This research identifies several groups of
respondents who fail to engage with the financial education provided to them when it
comes to managing their retirement savings.
6)11 (Bowditch, 2005) in his study of financial planning for retirement planning among
individuals in select age group of 25-45 years of age in Pune city, intended to study the
factors influencing the actions for retirement investment, level of awareness among
selected age group of individuals for retirement also to understand the financial literacy
among the respondents. The findings show that the male population is more concerned
with their retirement planning than female population. From respondents only 33% thinks
about their retirement while 60.9% sometimes and 6.1% never think about their retirement.
according to the study the financial literacy is 6.11, it also concluded that retirement is
influenced by age and income. Individuals in wealth creation stage have desire to retire at
55.6 years of age. About 25% of the individuals even desire to retire at the age of 50 years.

12
2.2 - Research Gap:

In the surveyed area, this type of study wasn’t found yet.

2.3 - Problem Statement

Financial literacy is the important part of the individual’s life, as based on that they can
have the savings for the future or can be financially secured. For the same purpose they
make different types of investments, FDs, saving accounts and many more. But having the
appropriate knowledge of investing money in right way for future benefits is still a big
challenge for some individuals. The reason is that they are either they aren’t aware about
the investment options available or they are not ready to invest for the future. While talking
about future we also include the retirement planning. There are many retirements plans in
the market with different kind of benefits, but only few are aware and are investing for
their retirement having the positive attitude, while others think that it is not required to plan
for retirement and some assumes that it is too early for them to invest for retirement. Half
of the population believe that there is not adequate information in the market available,
thus they do not have any investment plans for retirement. Therefore, there is the need to
study the level of awareness people having for retirement and also the factors which
influence their actions for planning

13
CHAPTER 3

OBJECTIVES

14
3.1 - OBJECTIVES

1) To make peoples aware about the various retirement schemes

2) To increase awareness about retirement planning amongst the peoples.

3) To encourage peoples to retire early and enjoy rest of life financially free.

4) To understand the level of awareness individuals, have regarding retirement

planning.

5) To study the factors that affect their retirement planning.

15
 CHAPTER – 4

RESEARCH METHODOLOGY

16
4.1 - Research Methodology

Type of Research - Descriptive research is defined as a research method that describes

the characteristics of the population or phenomenon studied. This descriptive
methodology focuses more on the “what” of the research subject than the “why” of the
research subject. The descriptive research method primarily focuses on describing the
nature of a demographic segment, without focusing on “why” a particular phenomenon
occurs. In other words, it “describes” the subject of the research, without covering “why” it
happens

Sampling Method In this study, we have used convenience sampling method by

considering the responses from individuals.

Sampling Frame – In this the sampling frame includes working population from different
occupations such as private employees, government employees , self employed etc .

Primary Data The data is collected from the respondents with the help of questionnaire.
The questionnaire is consisting the questions related to the personal details like age,
gender, occupation, qualification, income, and questions related to the respondent’s
financial awareness along with the preference level are included. It is focused to have the
data considering the objectives of the study.

Data Collection Method the Survey was conducted through Questionnaire – Google Form
for collection of data. The respondents were approached individually as well as the
questionnaire was circulated among the working individuals from different professions.

Analysis Techniques

Pie Chart - A pie chart is a type of a chart that visually displays data in a circular graph. It
is one of the most commonly used graphs to represent data using the attributes
of circles, spheres, and angular data to represent real-world information. The shape of a pie
chart is circular where the pie represents the whole data and the slice out of the pie
represents the parts of the data and records it discretely.

Table - Information (such as numbers and descriptions) arranged in rows and columns.

17
4.2 - Limitations

 Descriptive studies cannot be used to establish cause and effect relationships.

 Respondents may not be truthful when answering survey questions or may give
socially desirable responses.
 The choice and wording of questions on a questionnaire may influence the
descriptive findings.
 Depending on the type and size of sample, the findings may not be generalizable or
produce an accurate description of the population of interest.

18
 CHAPTER – 5

DATA ANALYSIS AND INTERPRETATION

19
1) What is your Gender?
Fig 5.1: Pie chart of Gender

GENDER

29

71

Male Female

Table no. 5.1 Gender of respondent

Gender N0. Percentage

Male 71 71%
Female 29 29%
TOTAL 100 100%

Data Interpretation - In the research the done out of the total population 70% are
male and rest 30% are female.

20
2) What is your Age?

Fig. 5.2 Pie chart of age group

AGE GROUP
2
9

24

65

18-24 24-35 35-50 50+

Table 5.2 Age group of respondent

Age group No. percentage

18-24 65 65%
24-35 24 24%
35-50 9 9%
50 plus 2 2%
TOTAL 100 100%

21
Data Interpretation - Out of the total population surveyed 65% were from 18-24
years, 24% were from 24-35 years , rest 9% were from 35-50 years

3) What is your Occupation?

Fig. 5.3 Pie chart of occupation

0CCUPATION
3

27

59 11

Self employed government employee

private employee others

22
 Table no. 5.3 Occupation of respondents

Type of employment No. percentage

Self employed 27 27%
Government employee 11 11%
Private employee 59 59%
others 3 3%
TOTAL 100 100%

Data Interpretation - From the data collected 59% belongs to private service, 11% to
government employee, 27% to self employed and 3% were others

4) what Age you plan to retire?

Fig. 5.4 Pie chart of retirement time

PLANNING TO RETIRE

16

11
50

10

13

More than next 20 yrs next 16-20 yrs next 11-15 yrs
next 5-10 yrs next 1-4 yrs

Table no. 5.4 Retirement time of respondents

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 Time to retire NO. Percentage
More than 20 years 50 50%
Next 16-20 years 13 13%
Next 11-15 years 10 10%
Next 5-10 years 11 11%
Next 1-4 years 16 16%
TOTAL 100 100%

Data Interpretation - Out of the research population 16% plan to retire in next 1-4 year,
10% plan to retire in next 5-10 years, 9% plan to retire in next 11-15 years, 13% plan to
retire in next 16-20 years, and 50% pan to retire after 20 years

5) Salary/Income

Fig. 5.5 Pie chart of income

SALARY/INCOME

17

29

23

31

<2 lakhs 2-4 lakhs 5-7 lakhs 7 lakhs+

24
 Table no. 5.5 Income of the respondents

Income No. percentage

0-2lakhs 29 29%
2-4 lakhs 31 31%
4-7 lakhs 23 23%
7 lakhs plus 17 17%
TOTAL 100 100%

Data Interpretation - Above pie chart shows 29% of the peoples earn 0-2
lakhs, 31% earns 2-4 lakhs, 23% earns 5-7 lakhs, 17% earns more than 7 lakhs

6) Have you started saving for retirement?

Fig. 5.6 Pie chart of started saving

STARTED SAVING

41

59

Yes No

25
 Table no. 5.6 Started saving respondents

Started saving No. Percentage

Yes 59 59%
No 41 41%
TOTAL 100 100%

Data Interpretation - Above pie chart shows 59% percent of the peoples have started
savings for the retirement

7) Why have not started saving for retirement?

Fig. 5.7 Pie chart of not saving reasons

NOT SAVING REASONS

8

12

12

68

Less income family expenses other loans havent planned yet

26
 Table no. 5.7 Not saving reasons of respondents

Not saving reasons No. Percentage

Less income 8 8%

Family expenses 12 12%

Other loans 12 12%

Haven’t planned yet 68 68%

TOTAL 100 100%

Data Interpretation - Above pie chart shows 68% of the peoples haven’t yet planned for
their saving for the retirement 12% having other loans, 12% having family expenses and
rest 8% having less income.

8) What percent of income you save currently as retirement saving?

Fig. 5.8 Pie chart of percent of income currently saving

27
 PERCENT OF INCOME SAVING
4

15
28

49

<10% 10-25% 25-35% 35-45% 45+

Table no. 5.8 Percent of income saving by respondents

Percent of income saved No. percentage

Less than 10% 28 28%
10-25% 49 49%
25-35% 15 15%
35-45% 4 4%
45% 0 0
TOTAL 100 100%

Data Interpretation - Above Pie chart shows 49% were saving 10-25% of their income,
28% were saving less than 10%, 15% save 25-35% of their income , 4% save 35-45% of
their income

9) Who provides you with retirement planning advice?

Fig. 5.9 Pie chart of Retirement planning advice

28
 FINANCIAL ADVISOR

19

58
23

Self research friends family Financial advisor

Table no. 5.9 Retirement planning advisors of the respondents

Financial advisor No. percentage

Selfresearch 58 58%
Friends and family 23 23%
Financial advisor 19 19%
TOTAL 100 100%

Data Interpretation - Above pie chart shows 23% of the respondent takes retirement
planning advice from their friends and family, 19% takes advice from financial advisor and
rest 58% do self research.

10) Among the following which are the different plans you are aware about and them
according to your preference?

1. Bank fixed deposits 6. Equities

2. National pension scheme 7. Mutual fund
29
 3. Public provident fund 8. Government bonds
4. Life insurance plans 9. Real Estate
5. Post office Monthly Income Scheme
Fig no. 5.10 Pie chart of preference of plans

Preference
1
7
13
41
8
8
11 9
2

Bank fixed deposits national pension scheme public provident fund

life insurance plans post office equities
mutual funds government bonds real state

Table no. 5.10 Preference of plans of respondents

Bank fixed deposits 41 41%
National pension scheme 9 9%
Public provident fund 11 11%
Life insurance plans 2 2%
Post office plans 8 8%
equities 8 8%
Mutual funds 13 13%
Real state 7 7%
TOTAL 100 100%

Data Interpretation: Form the above listed different plans, through the data it was found
that individuals mostly prefer bank fixed deposits, public provident fund and post office
monthly income scheme and are thoroughly aware about it. The least preferred plans are
equities and government bonds. The likely preferred or the second preferred investment

11) Why you prefer the above plans for retirement investment?

Fig no. 5.11 Purpose of the above plans

30
 WHY THE ABOVE PLANS

12 15

28
28

17

less risk higher return tax benefits security others

Table no. 5.11 Purpose of the plans selected

Why above plans No. percentage
Less risk 15 15%
Higher return 28 28%
Tax benefits 17 17%
security 28 28%
others 12 12%
TOTAL 100 100%

Data Interpretation- from the above Pie chart we can see that 15% of the respondent prefer less
risk , 28% preferer higher return, 17% prefer tax benefits schemes , 28% want security of their
funds , 12%prefer others.

12) Which of the following are the factors that affect your retirement planning?

31
Fig no. 5.12 Pie chart of Factors affecting retirement planning

FACTORS AFFECTING RETIREMENT PLANNING

4
13
30

32

58

Others Debts Healthcare future needs present need

Table no. 5.12 Factors affecting retirement planning of respondents

Factors No. percentage
others 4 4%
debts 13 13%
healthcare 32 32%
Future needs 58 58%
Present needs 30 30%
TOTAL 100 100%

Data Interpretation: According to the data the major factors that affect the retirement
planning of individuals are Present and future needs of family and healthcare.

13) What is the most and least significant concerns for retirement for you from the
following?

32
Fig no. 5.13 Pie chart of concerns after retirement

CONCERNS AFTER RETIREMENT

8

12

51

29

Maintaing income cost of healthcare purchase of assets other reasons

Table no. 5.13 Concerns after retirement of respondents

Concerns No. percentage
Maintain income 51 51%
Cost of healthcare 29 29%
Purchase of assets 12 12%
Other reasons 8 8%
TOTAL 100 100%

Data Interpretation: From the data collected it was analysed that maintaining an income
stream after retirement is the major concern for the individuals to save/ invest for their
retirement.
14) Are you eligible for government pension plan?

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Fig 5.14 Pie chart of eligibility for government pension

ELIGIBILITY

23

77

Yes No

Table no. 5.14 Eligibility of respondents for govt pension

Eligible No. percentage

Yes 23 23%

No 77 77%
TOTAL 100 100%

Data Interpretation – From the above Pie chant we can say that 77% were not eligible for
govt pension.

15) If yes, then what will be the amount of pension you will receive after retirement
monthly basis?
34
Fig no. 5.15 Pie chart of amount of pension will be received

11

12

42

35

>20000 20000-30000 30000-40000 40000+

Table no. 5.15 Amount of pension will be received by respondents

Amount of pension No. percentage
Less than 2 lakhs 42 42%
2-3 lakhs 35 35%
3-4 lakhs 12 12%
4 lakhs plus 11 11%
TOTAL 100 100%

Data Interpretation- From the above Pie chart we can say that 42% will get less than
20000, 35% will get between 20k to 30k, 12% will get between 30k to 40k and only1.2%
will get more than 40000.
16) If no, then what is the Annual income that you expect from your retirement saving
plans?

35
Fig no. 5.16 Pie chart of annual income expected from their saving plans

IF NO

17
21

33
29

<20000 20000-30000 30000-40000 40000+

Table no. 5.16 Annual income expected from retirement plans

Amount No. percentage
Less than 2 lakhs 17 17%
2-3 lakhs 33 33%
3-4 lakhs 29 29%
4 lakhs plus 21 21%
TOTAL 100 100%

Data Interpretation- From the above pie chart we can say that 17% expect less than
20000 from their retirement plans, 33% expect between 20000 to 30000 and only 1.2%
expect more than 40000

17) Which of the following you prefer the most to have your retirement investment in?

36
Fig no. 5.17 Pie chart of preference of Investment plans

Types of Investment Plans

34

57

Secured risk mixed

Table no.5.17 Preference of investment of respondents

Types of investment plans No. percentage
secured 57 57%
risk 9 9%
mixed 34 34%
TOTAL 100 100%

Data Interpretation- From the above pie chart we can say that 57% of the respondents
prefer secured investments, 9% prefer risky investments and rest prefer mixed investments.

37
 CHAPTER – 6

OBSERVATIONS AND FINDINGS

6.1 - OBSERVATIONS AND FINDINGS

38
 1) It has been found that the individuals of 30-35 age group are more concern about
retirement planning. Apart from that as compared to females, males are more
aware and plan for their retirement.

2) It has also been seen that the level of financial literacy for retirement planning
varies with occupation and qualification among individuals, as individuals having
private jobs i.e., 59% of the total are more involved with their retirement planning.
And graduates and postgraduates are likely to focus more towards retirement as
compared to others.

3) 3% of individuals prefer to save for retirement and out of that only 58% have
started saving for it. While remaining i.e., 41% haven’t planned yet while some of
them have ongoing loans and other family expenses.

4) Out of the total 49% of individuals save 10-25% of their annual income for their
retirement.

5) From the total individuals who prefer to or have started to save 57% prefer self-
research for retirement planning advice.

6) It has been seen that individuals likely to invest in bank fixed deposits, public
provident fund, and post office monthly income scheme for their retirement plan
due to higher returns and security. And also prefer to invest in national pension
scheme, life insurance plan, mutual funds, and real estate. While equities and
government bonds are least preferred for their retirement investment plan.

7) Future and present needs of family and healthcare are the major affecting factors
of the individual’s retirement planning. And maintaining an income stream after
retirement is the major concern for the individuals to save for their retirement.

8)During the study it was found that 77% individuals are not eligible for government
pension plan. And 41% individuals expect to earn
<20,000 monthly basis through pension.
39
 9) It was analysed that 57% individuals prefer secured investment plans for their
retirement, whereas 34% individuals prefer to have mixed investment plans (Risk and
Secured).
Out of individuals those who prefer secured investment, 70% individuals are more likely to
invest in life insurance plans and 62% to invest in bank fixed deposits

40
 CHAPTER - 7

CONCLUSIONS

7.1 - CONCLUSION

41
The study reveals that awareness of retirement planning is mostly found more in male as
compared to female and also individuals having private service/jobs are more involved in
retirement planning. It also shows that education and occupation doesn’t go hand in hand
for retirement planning. That means the awareness level varies with age, education,
qualification and gender, thus our null hypothesis of hypothesis 1 got rejected. The study
has also concluded that there are some of the factors that affect the retirement planning of
individuals such as future and present needs of family and healthcare, with this it
concludes that our null hypothesis of hypothesis- 2 got accepted, which shows that there
is impact of different factors affecting on retirement planning. Many of the individuals are
eligible for government pension plans and those who are not they mostly prefer secured
investment plans such as Bank fixed deposit, Life insurance plans, post office monthly
schemes because of higher return and security as compared to other investment plans.
many of them prefer to do self-research when it comes to investment plans selection.
Equities and government bonds are least preferred investment plans according to the
study.

42
 CHAPTER – 8

SUGGESTIONS AND RECOMENDATIONS

43
Suggestions And Recommendations

1) The person should have a clear understanding of retirement planning and should
take proper steps for retirement planning.

2) A person should be aware of retirement planning and should start retirement

planning early as possible

3) The goal and age of retirement should be clearly known so that to take efficient
measures to achieve them.

4) The investment should be carefully done for the previous performance, present
market status and future risk properly assessed for better results.

5) A person should take into consideration of its risk taking ability before retirement
planning.

6) While managing the investment portfolio, it is important to remember that the

riskier strategic investments should always be balanced with more conservative
investments

REFERENCES
44
1) Bowditch. (2005). Study of Financial Planning among individual in select age group
of 25 years to 45 years in Pune City.

2) Smruti Vakil, D. S. (2019). A Study on individual's retirement planning behaviour.

Global Journal for Research Analysis

3) Parveen Kumar, D. K. (2017). A Study of Awareness about Retirement Planning

among Employees. International Journal in management and social science

4) https://www.personalfn.com

5) https://www.investopedia.com

6) https://www.cnbc.com

7) https://economictimes.indiatimes.com

ANNEXURE
45
QUESTIONAIRE

1) GENDER
a) Male
b) Female
c) Others

2) Age in Years
a) 18-24
b) 24-35
c) 35-50
d) 50+

3) Occupation
a) Private service
b) Government employee
c) Self employed
d) Others

4) At what time you plan to retire?

a) More than 20 years
b) Next 16-20 years
c) Next 11-15 years
d) Next 5-10 years
e) Next 1-4 years

5) Salary/Income
46
 a) 0-2 lakhs
b) 2-4 lakhs
c) 4-7 lakhs
d) 7 lakhs plus

6) Why haven’t saving for retirement?

a) Less income
b) Family expenses
c) Other loans
d) Haven’t planned yet

7) Have you started saving for retirement?

a) yes
b) no

8) What percentage of income you save currently as retirement saving?

a) 0-5 %
b) 5-15%
c) 15-30%
d) 30% plus

9) Who provides you with retirement planning advice?

a) Self research
b) Friends and family
c) Financial advisor

47
10) Among the following which are the different plans you are aware about and them
according?
a) Bank FD
b) National pension schemes
c) Public provident fund
d) Life insurance plans
e) Post office schemes
f) Equities
g) Mutual funds
h) Government bonds
i) Real state

11) Why you prefer the above plans for retirement investment?
a) less risk
b) higher risk
c) tax benefits
d) security
e) others

12) Which of the following are the factors that affect your retirement planning?
a) Present needs
b) Future needs
c) Healthcare
d) Debts
e) Others

13) What is the most and least significant concerns for retirement for you from the
following?
a) Healthcare
b) Maintaining income
c) Purchase of assets
d) Other reasons
48
14) Are you eligible for government pension plan?

a) yes

b) No

15) if yes, then what will be the amount of pension you will receive after retirement
monthly basis?

a)0-2 lakhs

b)2-3 lakhs

c) 3-4 lakhs

d) 4 lakhs plus

16) If no, then what is the monthly income that you expect from your retirement saving
plans?
a)0-2 lakhs
b)2-3 lakhs
c) 3-4 lakhs
d)4 lakhs plus

17) What type of investment you prefer?

a)Secured
b)Risky
c)Mixed

49