Attitude of People in Purchase of Pension Plans among Private Sector Employees

Abstract

There is a natural emotional connect when a parent saves for children. However, very few people display the same passion when it comes to their retirement savings. Psychologists say that they do notassociate with the person they will be in future, is the main reason for not saving for retirement.. But in reality, unlike earlier generations who joined the workforce immediately after graduation at 20 or 21, the demand for higher education has meant the age at which one starts to work is now 25 or more. The non-voluntary reasons like health issues, inability to cope with work pressure and redundancy can also force one to quit working early. The working life is shrinking due to early retirements, both aspirational and forced. Keeping this in mind, this paper is devoted to study the attitude of working community in purchasing pension plans and impact of certain factors like Type of plans, benefits, reliability, security, etc. in their attitude in purchase of pension plans. Samples of 670 employees in Chennai/Sriperumpedur region have been selected for study and information was gathered through a structured questionnaire. The data was analyzed through SPSS software and it revealed that reliability of pension plans and interest on pension plans are the important predictors in discriminating the purchase groups of respondents.