Predictors of Retirement Saving Behavior.

This study examines the effect of family influence, peer influence, risk tolerance, financial literacy and financial attitude on retirement saving habits and beliefs. The study was conducted on working people in the age group of above 25 years from both private and public sector, and the final sample consisted of 132 respondents. The study used the Structural Equation Modeling (SEM)-AMOS for the analysis of data and to test the proposed model. The respondents were also asked about their choice of retirement saving avenues. The results show that real estate (21% of the respondents) is the most preferred saving avenue, followed by FDs (19% of the respondents) and NPS (17% of the respondents). Shares have been ranked the lowest as an avenue for retirement saving because of their volatile nature. The study found that peer group has a positive and significant influence in shaping the retirement saving habits and beliefs. Financial literacy positively impacted retirement saving habits and beliefs. Similarly, financial attitude also had a significant effect on retirement habits and beliefs. Careless/imprudent financial attitude negatively affects retirement saving habits and beliefs. The findings suggest that financial literacy should be given paramount importance so that people develop positive financial attitude and would be able to save sufficient for their retirement. Financial literacy being the most important factor should not be just limited to printed material and textbooks, but the approach should be adopted since childhood so that people learn personal financial management and plan their savings for retirement. [ABSTRACT FROM AUTHOR]