An exploratory study on the factors affecting retirement planning among working women in the city of Bengaluru

Shobha T. S., P. Amrutha

Abstract


Purpose of the research: Retirement Planning is a crucial aspect of Financial Well-being of an individual after active working life of that individual. Women; face numerous challenges in their quest for financial independence, one such challenge is to be prepared for their financial well-being after their retirement. Women are not very prudent in planning for finances and especially with respect to planning for retirement. An attempt has been made with respect to identifying the role of various factors involved in retirement planning of women. Methodology: The present study is analytical in nature, aims to identify the influence of demographic factors, Financial Literacy, Financial Risk Tolerance and Attitudes of women towards retirement planning affecting the Retirement Planning Behaviors. A sample of 402 working women from different parts of the Bengaluru City were administered with a structured questionnaire prepared for the research and the data obtained was analyzed using ANOVA and Regression Analysis. Findings: While the analysis using ANOVA found that age, marital status, annual income, number of financial dependents and occupation where the demographic factors affecting Retirement Planning and further, Regression Analysis indicated an adjusted R square of 0.47, indicate the predictive power of the model and the importance of the Financial Literacy, Financial Risk Tolerance and Attitudes towards retirement planning impacting the Retirement Planning Behaviour of working women in Bengaluru. Implications: This research not only concentrates on demographic factors affecting Retirement Planning, but also identifies the impact of Financial Literacy, Financial Risk tolerance and Retirement Attitudes affecting the crucial behaviour of Retirement Planning behaviors. Novelty: This is a very unique research in the Indian context with respect to women, aimed at studying not only demographic factors, but also the crucial impact of Financial Literacy and Risk tolerance, aimed at developing intervention strategies at ground level to target women to empower them in planning and investing for their retirement requirements.

Keywords


Financial Literacy, Financial Risk Tolerance, Attitude towards Retirement, Retirement Planning

Full Text:

PDF

References


Adam, A. M,, & Frimpong, S., & Boadu, M. O (2017). Financial literacy and financial planning: Implication for financial well-being of retirees. Business and Economic Horizons. 13(2), 224-236. http://doi.org//10.15208/beh.2017.17.

Bajtelsmit, V.L., and Bernasek, A. (1996). Why Do Women Invest Differently than Men. Financial Counseling and Planning, 7, 1-10. http://dx.doi.org/10.2139/ssrn.2238

Bucher-Koenen, T., Lusardi, A., Alessie, R., & van Rooij, M. (2017). How Financially Literate are Women? An Overview and New Insights. Journal of Consumer Affairs, 51(2), 255-283.

Clark, R., Lusardi, A., & Mitchell, O. S. (2016). Employee Financial Literacy and Retirement Plan Behaviour: A Case Study. Economic Inquiry, 55(1), 248–259. https://doi.org/10.1111/ecin.12389

Githua, S.W., Afande, F.O., & Theuri, M. (2015). Drivers for Retiremet Plaign ad Savings of Women in Selected Private Secondary and Primary Schools in Nyeri County, Kenya. Research on Humanities and Social Sciences, 5(7), 41-59.

Glass, J. C., & Kilpatrick, B. B. (1998). Gender Comparisons of Baby Boomers and Financial Preparation for Retirement. Educational Gerontology, 24(8), 719–745. https://doi.org/10.1080/036012780240802.

Gupta, S. (2017). To Measure the levels of Financial Literacy among Individuals of Delhi. Indian Journal of Research, 6(1), 2250-2265.

India’s life expectancy improves marginally” – Economic Times Article Published on September 09, 2019. https://economictimes.indiatimes.com/news/politics-and-nation/life-expectancy-improves-marginally-at-birth-to-69-years/articleshow/71041328.cms?from=mdr. Dated: Sep 9,2019.

Krejcie, R.V. and Morgan, D.W. (1970). Determining Sample Size for Research Activities.Educational and Psychological Measurement. 30, pp.607-609.

Lusardi, A. and Mitchell, O. (2008). Planning and Financial Literacy: How Do Women Fare?. American Economic Review. 98. 413-17. 10.2139/ssrn.1094097.

Lusardi, A., & Mitchell, O. S. (2011). Financial Literacy Around the World: An Overview. Journal of Pension Economics & Finance, 10(4), 497–508. https://doi.org/10.1017/S1474747211000448

Mansor, M.F., Hong, C.C., Abu, N.H., & Shaari, M.S (2015). Demographic Factors associated with Retirement Planning: A study of employees in Malaysian Health Sectors. Asian Social Science, 11(13), https://doi.org//10.5539/ass.v11n13p108

Moorthy, M.K., Chelliah, T.D., Sien, C.S., Kai, N.Z., Rhu, W.C. And Teng, W.Y. (2012). A Study on the Retirement Planning Behaviour of working Individuals in Malaysia. International Journal of Academic Research in Economics and Management Sciences. 1(2), pp.54-72.

Olsen, A., & Whitman, K. (2007). Effective retirement savings programs: design features and financial education. Soc Secur Bull., 67(3), 53-72. PMID: 18605218.

Priya, S.P., (2018). Influence on Financial Behavior on Retirement Confidence among Working Adults. Indian Journal of Applied Research.8(2), 61-65.

Warren, R., & Rossiter-Base, S. (2004). Retirement planning for the over 50’s http://www.fsa.gov.uk/pubs/other/fincap/retirement.pdf


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+919764558895 (whatsapp),
editor@scholarshub.net, www.scholarshub.net

Copyrights © 2010-2021 - ERM Publications, India     

This work is licensed under https://creativecommons.org/licenses/by-sa/4.0/