An Analysis of Gender Differences on Investment Decisions towards Retirement Planning

1. INTRODUCTION

Policy makers and Economist are often of the view that gender, age, occupation marital status, income, etc. plays a vital role while taking decisions towards investment for their retirement. Opinion of the males and females investors may be different while making decisions towards retirement planning. India is witnessing a transformation in its households system from the joint family system to the nuclear family system. It is primarily because of the increasing immigration of younger generations to distinguished places of the work which contract the old age monetary support. Moreover, the increased life expectancy and increased medicinal everyday expenditure during later age are away from the reach of a general common man. Looking to this paradigm shift it is inevitable to assess the gender differences towards retirement planning. According to Old Age Social and Income Security (OASIS) Project, both male and female population in India at age 60 now is likely to live beyond 75 years of age. To study the gender differences following survey of literature was performed.

Researchers Their Findings Turner et al, (1994) Early you plan to retire the more you will have to reap the benefits in later age of your life. A retirement becomes a comprehensive component of the normative life cycle stage, accepting the factors influencing retirement preparation activities, family income and retirement planning is closely related. Sample was taken from the 2760 people having age between 40 to 64 years and for analysis regression analysis used. Kim, Kwon and Anderson (2004) The individuals‟ retirement planning tends to be higher than others if the level of household income is accompanied with better health. Retirement confidence was taken as dependent variable. Independent variables include variables related to anticipation and preparation for retirement, and individual characteristics of respondents. Sample was taken from 20-minute telephone

United States. T-test, ANOVA and Correlation analysis were used to conclude results. Wong and Earl (2009) Retirees neglected retirement planning because they have certain level of difficulty in adjusting to retirement. In the conclusion, the findings suggest that (1) demographic; and (2) organizational place (3) Health predicts a better retirement planning. Sample was collected from 394 retirees (aged 45–93 years). Regression analysis was used to arrive at conclusion. Lusardi and Mitchell (2007) Showed that planners accumulate large wealth than non-planners through saving, investment, probability of selling house to finance retirement and others. A sample size consist 2660 respondents of 51-56 age group. Multivariate and quartile regression analysis was used to arrive at conclusion. Joo and Pauwels (2002) Studied that the people with higher level of education is more confident towards retirement. Hence they think of an early retirement planning. His sample for the data was 1002 individuals. Regression analysis was done to arrive at the result. Lai, Lai and Lau (2009) Concluded that there is major difference between teaching position, education and age across the yearly income levels from academics‟ perspective. This survey found that individual considered money and income to were applied to test the sample. Vaidyanathan (2007) Concluded on the basis of secondary data comprising household savings in India during the period 1961-2001. He found that in India the self-employed individuals who are not having any government social security benefits end up with savings in Gold and Life Insurance investments Correlation and ANOVA tests were applied to test the sample. Calasanti, T. M. (1996) Their study attempts the research on retirement in two ways. First, establish relationship between gender and life satisfaction in retirement. Second, whether the “male model” of life satisfaction in retirement can be applied to assess women's life satisfaction in retirement. It was hypothesized that world view on work satisfaction. For sample data was taken from the General Statistical Survey US (GSS) survey from years 1973 to 1990. The variables for the study were Life satisfaction in retirement, occupational regression, financial satisfaction, and income. For analysis purpose Bivariate correlation analysis and regression analysis was used. Kamal Halili Hassan et al, (2016) in his study “Retirement Planning Behaviour of Working Individuals and Legal Proposition for New Pension System in Malaysia” they concluded that there

saving behaviour for old aged people in Malaysia. For sample purpose a total of 500 of more than 40 years of age working individuals in private sectors were taken in the study. Multiple linear regression analysis was used for analysis purpose. Retirement planning behaviour was used as dependent variable and for independent variables includes measuring house hold size, demographic factors and; (3) psychology factors (financial literacy, goal clarity, and attitude toward retirement) were taken.

The present study frames following two research objectives ► To analyze the gender differences on investment decisions towards retirement planning

4. RESEARCH METHODOLOGY:

Present study is a descriptive research. Gender is independent variable and investment decision towards retirement planning is dependent variable. The primary data was collected with the help of well-structured questionnaire. The sample of 1144 investors from different walk of life was collected.

H0: There are no gender differences on investment decisions towards retirement planning. H1: There are gender differences on investment decisions towards retirement planning.

Chi-Square test to find out whether there is a significant relationship between two variables viz gender differences and investment decision towards retirement planning. found within the satisfactory region.

The most important demographic variable was gender which is an important variable for analysis point of view in more than one aspect. The table no 4 will give you description of respondent‟s gender wise.

■ H0: There is no significant difference between the opinion of Male and Female respondents when asked “Are you investing towards retirement planning”. ■ H1: There is significant difference between the opinion of Male and Female respondents when asked “Are you investing towards retirement planning”.

The value of significance found 0.001 which is less than alpha value 0.05. The null hypothesis got rejected thus we can say that there is significant difference between the opinion of Male and Female respondents when asked “are you investing towards retirement planning”.

The value of significance found 0.533 which is less than alpha value 0.05. The null hypothesis got accepted thus we can say that there is no significant difference between the opinion of Male and Female respondents when asked “why you are not investing towards retirement planning”.

■ H0: There is no significant difference between the opinion of Male and Female respondents when asked “Do you Think Retirement Planning is Important”. ■ H1: There is significant difference between the opinion of Male and Female respondents when asked “Do you Think Retirement Planning is Important”.

The value of significance found 0.00 which is less than alpha value 0.05. The null hypothesis got rejected thus we can say that there is There is significant difference between the opinion of Male and Female respondents when asked “Do you Think Retirement Planning is Important”.

■ H0: There is no significant difference between the opinion of Male and Female respondents when asked “which is your most prominent source of financial advice”. ■ H1: There is significant difference between the opinion of Male and Female respondents when asked “which is your most prominent source of financial advice”.

The value of significance found 0.00 which is less than alpha value 0.05. The null hypothesis got rejected thus we can say that there is There is significant difference between the opinion of Male and Female respondents when asked “which is your most prominent source of financial advice”.

■ H0: There is no significant difference between the opinion of Male and Female respondents when asked “In how many years do you want to retire”. ■ H1: There is significant difference between the opinion of Male and Female respondents when asked “In how many years do you want to retire”.

The value of significance found 0.00 which is less than alpha value 0.05. The null hypothesis got rejected thus we can say that there is There is significant difference between the opinion of Male and Female respondents when asked “In how many years do you want to retire”.

The analysis revealed that majority of the respondents almost 51% of them want to retire in next 25 years and above. There was positive perception found between the male and female respondents when asked do you think retirement planning is important but the hypothesis test results says that there is significant difference on the opinion between the male and female respondents. When asked do you invest towards retirement planning the responses found positive but the hypothesis test results says that there is significant difference on the opinion between the male and female respondents. When asked the prominent source of retirement planning advice it was found that respondents rely on their own belief to decide upon the investment decisions and the hypothesis test results shows there is significant difference on the opinion between the male and female respondents. The present study concludes that retirement planning is important but the opinions of the male and female towards retirement planning is different.

Time is undoubtedly a hindrance to a research. Other statistical tools may also be applied to analyze the data. The study requires the primary data which is collected with some assumption such as data size and sampling techniques.

This study gives the further scope to analyze the factors which influences the males and females independently towards retirement planning. related to retirement confidence: Retirement preparation and workplace financial education. Journal of Financial Counseling and Planning, 16(2), 0_1. Turner, M. J., Bailey, W. C., & Scott, J. P. (1994). Factors influencing attitude toward retirement and retirement planning among midlife university employees. Journal of Applied Gerontology, 13(2), pp. 143-156. Wong, J. Y., & Earl, J. K. (2009). Towards an integrated model of individual, psychosocial, and organizational predictors of retirement adjustment. Journal of Vocational Behavior, 75(1), pp. 1-13. Lusardi, A., & Mitchell, O. S. (2007). Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth. Journal of monetary Economics, 54(1), pp. 205-224. Lusardi, A., & Mitchell, O. S. (2007). Baby boomer retirement security: The roles of planning, financial literacy, and housing wealth. Journal of monetary Economics, 54(1), pp. 205-224. Joo, S. H., & Pauwels, V. W. (2002). Factors affecting workers' retirement confidence: A gender perspective. Lai, M. M., Lai, M. L., & Lau, S. H. (2009). Managing money and retirement planning: Academics‟ perspectives. Pensions: An International Journal, 14(4), pp. 282-292. Vaidyanathan, R. (2007). Declining joint family and emerging crisis in old age security. International Journal of Indian Culture and Business Management, 1(1-2), pp. 151-173. Calasanti, T. M. (1996). Gender and life satisfaction in retirement: An assessment of the male model. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 51(1), pp. S18-S29. Hassan, K. H., Rahim, R. A., Ahmad, F., Zainuddin, T. N. A. T., Merican, R. R., & Bahari, S. K. (2016). Retirement Planning Behaviour of Working Individuals and Legal Proposition for New Pension System in Malaysia. J. Pol. & L., 9, p. 43.

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Assistant Professor, IPS Academy, IBMR, Indore MP