Article
https://doi.org/10.52783/mjble.328
“Retirement Preparedness in Selected Urban Cities: A Behavioural Analysis of Risk Perception, Financial Literacy, and Portfolio Diversification.”
Purpose:
The study is an exploration of the retirement planning behaviour exhibited by urban professionals of India, specifically examining the interplay between financial devices, demographic factors, and risk perceptions in individuals. The research seeks to investigate how social economic attributes, financial awareness, and behavioral traits influence retirement preparedness.
Methodology:
The research adopts a descriptive and analytical design based on primary data collected through a structured questionnaire administered via Google Forms. A total of 50 respondents from urban areas, primarily Mumbai and Pune, were selected using a convenience sampling technique. Statistical tools such as the Chi-square test, one-way ANOVA, and Pearson correlation were applied to examine relationships between occupation, age, financial awareness, and retirement planning behaviour.
Findings:
The study finds that Occupation is found to have a great impact on the selection of retirement vehicles, whereby salaried employees utilize debt-based investment tools, whereas self-employed persons opt for equity-based investment vehicles. There was a significant difference in longevity risk perceptions by various generations, where older respondents were found to be concerned about their longevity risk compared to younger ones. Moreover, a very high positive correlation coefficient (r=0.68) is found between financial literacy and diversification intentions, implying that knowledge is an essential element for integrating portfolios.
Originality:
This research provides a behavioural perspective by integrating demographic segmentation, financial literacy, and psychological risk factors using primary data. It contributes to understanding how real-world constraints shape retirement planning in urban India.