Financial Planning for Retirement - A Behaviour study of Private Sector Employees Andhra Pradesh-India

Abstract

This study examines how employees in the private sector plan for their retirement with an emphasis on risk tolerance, delay, cognitive biases, and financial certainty. Given the importance of retirement planning for long-term financial security, it is critical to comprehend the behavioral factors impacting these choices. The study looks at how present bias, anchoring, and overconfidence are examples of cognitive biases that impair employees' capacity to make wise retirement planning decisions. It also looks at the effects of postponement practices, which are when people put off retirement planning or saving, and how this can seriously harm one's capacity for managing money. The present research examines the determinants such as risk tolerance, retirement preparation, emphasizing the means of different risk appetites affect investment selections and savings trends. Since the capacity to plan ahead and make wise judgments is closely linked to financial confidence, financial confidence is also evaluated. Employing a mixed-methods approach, the study gathers information from employees in the private sector through surveys and interviews, offering insights into their beliefs, attitudes, and retirement-related behaviors. The main emphasis on exploring the primary variables such as behavioral hindrance and facilitators providing suggestions to improve financial readiness among employees in the private sector. This study advances our knowledge of behavioral finance and offers useful information that financial advisors, employers, and legislators can use to support sensible retirement planning practices.