A Comparative Study of Factors affecting Retirement Planning Behaviour of Employees in Public and Private Sector in Ajmer City

Abstract

The purpose of this study is to assess the retirement planning behaviour and the processes involved among the public and private organizations employees in Ajmer City, India. The objective is to examine the relationship between internal characteristics, including financial knowledge, family education, materialism, self-control bias, and planning attitude and external factors like economic stability, government policies, and current earnings on retirement readiness. Quantitative data was collected in the study with surveys conducted on 400 employees and interviews conducted to complement the survey findings. Research tools and methods such as regression analysis, ANOVA test and cross-tabulations, Chi-Square, and T- tests were used to test for significant differences between public and private sector employees with the overall subject area being understood in its entirety. The tools for the research were MS-Excel and SPSS. The research shows that there is significant difference between the two sectors. Public sector employees were in general more prepared for retirement, this would be due to structured pension planning, relatively stable income and high level of financial literacy. On the other hand, the employees from private sector experienced high volatility of income, poor or no access to formal retirement, and psychological factors such as high impulsiveness and materialism. Two key factors regarded as important determinants of retirement readiness included economic stability and government support on retirement policies, however, there are still weak awareness and inclusions of some retirement policies and retirement policies mainly affecting private sector employees. newline