A STUDY ON THE RETIREMENT CONFIDENCE OF EMPLOYEES WORKING

IN IT SECTOR IN COIMBATORE

By
SHAHAR BANU.P
Register Number: 720614631091

A PROJECT REPORT
Submitted to
HAPPY VALLEY BUSINESS SCHOOL

In partial fulfillment of the requirements

For the award of the degree

Of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY
CHENNAI-600025

JUNE, 2016

BONAFIDE CERTIFICATE

Certified that this project report titled A STUDY ON THE RETIREMENT

CONFIDENCE OF EMPLOYEES WORKING IN THE IT SECTOR IN

COIMBATORE" is the bonafide work of Ms. SHAHAR BANU.P who carried out the
research under my supervision. Certified further, that to the best of my knowledge the work

reported herein does not form part of any other project report or dissertation on the basis of

which a degree or award was conferred on an earlier occasion on this or any other

candidate.

......................................................

Ms.P Shanmugha priya Dr.T.Bina

Faculty guide Head of Department

Submitted for the vive- voce examination held on..

. ..

(Signature of Internal Examiner with date) (Signature of External Examiner with date)

ACKNOWLEDGEMENT

I thank God Almighty for his blessings for the completion of this study. It gives me

immense pleasure to thank all those who supported me for the completion of this report.
 I thank Dr. C. Kanagaraj, Director, Happy Valley Business School Coimbatore for

giving me this opportunity to undergo this project and his support and encouragement in the

completion of this research work.

I also express my gratitude to Dr. T. Bina, Head of the Department for her support

and guidance.

I wish to express my sincere thanks to my faculty guide Ms.P Shanmugha priya,

Assistant professor for the able guidance and encouragement given to me to complete this

project work successfully.

I would like to express my sincere gratitude to my parents and friends and all others

who have helped me at various stages to prepare and submit this project in time.

TABLE OF CONTENTS

CHAPTER TITLES PAGE NO

NO

1 Introduction 1
 1.2 Industry profile 2-6
Main theme of the project 7
2.1 Need of the study 7
2.2 Review of literature 7-9
2.3 Objectives of the study 9
2 2.4 Research methodology 10
2.4.1 Research design 11

2.4.2 sample design 11

2.4.3 Data collection method 12

2.4.4 Statistical tools used 12-15

2.4.5 Limitations of the study 15

Data analysis & interpretations 16-46

3

Findings, Suggestions &Conclusions 47

4 4.1 Findings 47-48

4.2 Suggestions 48

4.3 Conclusion 49

Bibliography 50

Appendix

LIST OF TABLES
S.NO Title of the tables Page no
2.4.4.6 Reliability Analysis 14
3.1.1 Gender classification of the respondent 16
3.1.2 Age of the respondent 17
3.1.3 Marital status of the respondent 18
3.1.4 Family type of the respondent 19
3.1.5 Education level of the respondent 20
3.1.6 Annual income of the respondent 21
3.1.7 No of dependents in the family 22
3.1.8 No of earning members in the family 23

3.1.9 Value of wealth of the respondent 24

3.1.10 Residing status of the respondent 25

3.1.11 Additional income status of the respondent 26

3.1.12 Asset-to-debt ratio of the respondent 27

3.1.13 Financial adequacy of the respondent 28

3.2.1 Factor analysis for retirement confidence 29-32

3.2.2 Factor analysis for financial behavior 33-36

3.3.1 Descriptive statistics for financial behaviour and 38

Retirement confidence
3.3.2 Regression Analysis Model Summery-Retirement 39
confidence and financial behaviour variables.
3.3.3 Analysis of Variance (ANOVA)-Retirement 39
confidence and financial behaviour variables.

3.3.4 Regression coefficient-Retirement confidence and 39

financial behaviour variables.

3.4.1 ANOVA between Age and retirement confidence. 40

3.4.2 ANOVA between Marital status and retirement 41

confidence.
3.4.3 ANOVA between Annual income retirement 41
confidences.
3.4.4 ANOVA between No of dependents and retirement 42
confidence.
3.4.5 ANOVA between No of earning members and 43
retirement confidence.
3.4.6 ANOVA between Value of wealth and retirement 44
confidence.
3.4.7 ANOVA between Asset-to-debt ratio and retirement 44
confidences.
3.5.1 Independent t-test for Gender and retirement 45
confidence.
3.5.2 Independent t-test for Family type and retirement 46
confidence.

LIST OF FIGURES

FIGURE # TITLE PAGE NO

2.4. Theoretical Framework 10

3.1 Gender classification of the respondent 16

3.2 Age of the respondent 17

3.3 Marital status of the respondent 18

3.4 Family type of the respondent 19

 3.5 Education level of the respondent 20

3.6 Annual income of the respondent 21

3.7 Dependents in the family 22

3.8 Earning members in the family 23

3.9 Value of wealth of the respondent 24

3.10 Residing status of the respondent 25

3.11 Additional income status of the respondent 26

3.12 Asset-to-debt ratio of the respondent 27

3.13 Financial adequacy of the respondent 28

ABSRTACT

Knowledge of retirement confidence has been found to be low in many people,

especially in IT employees. They are the people with higher income and low investment.
This study aims to examine the influence of financial behaviour on retirement confidence
and influence of various socio-demographic variables on the retirement confidence of
employees working in the IT sector. Convenience non-probability sampling applied as the
sampling technique in this study. Multiple regression analysis was applied to determine the
predictors of the retirement confidence. One way ANOVA and independent t-test are used
to study the impact of various socio-demographic variables on retirement confidence. This
study concludes that financial behaviour is the major forecaster of the retirement
confidence among the IT employees. The findings of the study have practical suggestion for
financial advisors in helping employees to be more aware of their future retirement life
financial needs and to prevent them from debt trap in later years.

Appendices

STUDY ON RETIREMENT CONFIDENCE OF EMPLOYEES IN IT

SECTOR IN COIMBATORE

Respected Mam /Sir,

I am shahar banuP student of Happy Valley Business School, conduct research on Study
on retirement confidence of employees in IT sector in Coimbatore. Kindly give your
responses.
Demographic variables

1. Name : ...................................................................

2. Gender : Male Female

3. Age : Below 25 years 25-29 years

30-34 years 35-39 years

40-45 years

4. Marital Status : Single Married

Divorced Widowed

Others (Please Specify :...........)

5. Family type: Nuclear Joint family

6. Education level : UG PG

Others (Please specify...............)

7. Annual income : Below 2.5 Lakhs 2.5- 5 Lakhs

5-10 Lakhs Above 10 Lakhs

8. No of dependents in the family : 0 1 2 3

9. No of earning members in the family: 1 2 3 4

10. Mention the value of wealth you are holding

Less than 50 Lakhs 50 Lakhs-1 crore More than 1 crore

11. Are you residing in?

Own house Rented house

free Housing quarter

12. Do you have any additional income other than regular income?

Yes No

13. If yes, please mention the source of earning

Spouse income Alternative business

Agricultural income Rent from building

Income from parents Share/stock for returns

Interest earned Income earned by children

Others (Please specify)....................

14. Please tick the option which describe your Asset-to-Debt ratio

Zero Debt Asset< Debt

Asset = Debt Asset> Debt

15. Please rate your financial adequacy

Not enough Enough for basic use only

Enough for everything

More than enough and can save money as well

16. Please rate the following statements, which best describe your retirement planning.

SN STATEMENTS Strongly Agree Neutral Disagree Strongly

agree disagree
1 Retirement enables me to pursue
my unfulfilled dreams
2 I look forward to retirement
3 I am worried about my life after
retirement
4 Retirement makes me feel useless
5 I am aware that the value of
 money depreciate over time
6 EPF and public pension scheme is
the only source of income during
my retirement
7 I am aware of the other investment
alternatives
8 I dont know how the inflation rate
is calculated
9 I understand the process of
compound interest
10 I am not aware of the retirement
benefit offered by my
company/government
11 I have thought a lot about my
future finances
12 I often compare my future
financial position with the
financial position I would like to
Have in retirement
13 I have clear understanding of
financial issues for retired people
14 I often talk to my friends about the
financial issues for retired people
15 I have specific goal regarding the
financial position want in the
retirement
16 Its too early for me to start
thinking about my retirement
finances
17 I know that people my age group
are making financial preparation
for retirement
18 Its worthwhile to make financial
provisions for retirement
19 If I was forced to retire today I
would have enough money to cope
well with retirement
20 Members of my household are
 able to put aside or invest a
sufficient proportion of our
income
21 By the time I retire , I will have
sufficient income to to ensure the
standard of living I want in
retirement
22 By the time I retire , I will own a
house without a mortgage
23 By the time I retire, I will have
enough money to pay for any
unexpected expenses
24 I know exactly how much money I
will need to ensure to ensure the
standard of living I want in
retirement
25 I have enough money to live
comfortably during my retirement
years

26 Have enough money to pay for

basic expenses during retirement
27 Have enough money to pay for
medical expenses in retirement
years
28 Have confidence that I am well
prepared for retirement
29 I am able to resolve debt during
retirement
30 Have enough money to pay for
long term care ,such as nursing
care or health care , which is
needed to live comfortably during
retirement years

17. Please rate the following statements which best describe your financial behaviour.
SN STATEMENTS Strongly Agree Neutral Disagree Strongly
agree disagree
1 I find it more satisfying to spend
money than to save it for the long
term
2 I like to join conversation about
financial matters
3 I set long term financial goal and
strive to achieve them
4 Dealing with money is not
stressful
5 I have the ability to invest money
6 I feel comfortable with my level
of debt
7 Financial planning is only
important for those who have a lot
of money
8 I have the ability in dealing with
financial service providers
9 I have the ability and
understanding to manage my long
term financial future
10 I have the ability to ensure enough
money for my retirement
11 Saving of money ensures secured
life
12 When it comes to financial
matters, I think of myself as a risk
taker
13 Saving is certainly tough task but
it is must
14 Save today- smile tomorrow a
mantra for salaries class
15 I tend to live for today and let
tomorrow take care of itself
16 I pay my bill on time
17 Before I buy something I carefully
consider whether I can afford it
18 I budget and track spending
19 I keep a close personal watch on
my financial affairs
20 I compare my receipt of purchases
to my monthly statements
21 I read to increase my financial
knowledge
22 I get ensure by the terms used by
financial experts
23 After making a decision, I am
anxious whether I was right or
wrong
24 I tend to postpone financial
decisions

25 At the end of the day, I decided

intuitively on financial affairs
26 I maintain my financial records in
details
27 I have the ability to understand
financial terms
28 I always save first before spending
the balance
29 I save money for emergency funds

18. Which are investment alternatives you would prefer for Retirement?

Public provident fund National saving certificate

Mutual fund Life insurance

Bonds Real estate/Property

Chit funds Gold/ silver

Saving bank others