Perception of Invstor Towards Pension Schemes In Allahabad

© 2017 IJSRSET | Volume 3 | Issue 5 | Print ISSN: 2395-1990 | Online ISSN : 2394-4099 Themed Section: Science and Technology Perception of Invstor Towards Pension Schemes In Allahabad Dr. Mohit Gangwar Principal, Bhabha Engineering Research Institute, Bhopal, Madhya Pradesh, India ABSTRACT Investment in pension schemes is influence by the perception of the investors. The objective of this research is to access the investor’s perception on pension schemes and to find the factors involving in investor’s perception for pension scheme. This research focuses on the perception of the investors for investment in pension schemes in Allahabad. Talking random sampling of 1000 investors and statistical methods are applied for analyzing the data collected for this research. This research focuses on investor’s positive mindset for pension schemes. The pension scheme opted or selected by investors for after service life. Investors collecting the information from pension expert and after expert opinion then invest their money in pension. Most of the investors choose market linked pension schemes for investment selection in pension schemes. Keywords: Investor Perception, Pension Scheme, Demographic Criteria, I. INTRODUCTION II. Review Literature Pension provides old age security. It is a welfare schemes for supporting people during old age. Pension is investment method to secure future during non earning days. Pension provides financial resources to people after a specific age or service. Specifically, pensions are periodic payments to people that start after retirement and continues until death [1]. Thus, pension gives a long-term financial security during old age. Pension schemes not only fulfill the goal of utilization easiness’ but also provide insurance support and reduce old age poverty during non working years. The aim of doing this research work is to find the investor’s perception for investment in pension schemes. It will guide the investors to select pension schemes [2]. Finally, the research work carried out to discover the investor’s perception for pension schemes with special reference to Allahabad of Uttar Pradesh state. For attainment of these objectives, primary data firstly collected on the basis of structured designed questionnaires from the investor’s of Allahabad of Uttar Pradesh state [3]. After collection primary data, Secondary data collected from reports, books, journals, magazines and other published data’s related to pension. For analyzing the different hypothesis and gaining insight for drawing sound conclusion, a number of statistical tests conducted i.e. chi square test for hypothesis testing [4]. Beck's (1984) [5] [7], findings show that people who were more motivated for retirement programs planning were the economically and socially advantaged worker who could have easily got opportunity to get into such programs. It was found that people benefitting most from the retirement preparation programs were the older workers and those who were less educated, with low occupational status, no pension scheme coverage, and consequently with low retirement income. Beck's (1984) [5] [7], findings show that people who were more motivated for retirement programs planning were the economically and socially advantaged worker who could have easily got opportunity to get into such programs. It was found that people benefitting most from the retirement preparation programs were the older workers and those who were less educated, with low occupational status, no pension scheme coverage, and consequently with low retirement income. Everyone does not get actively involved in any schemes how so ever the scheme may be for them only [5]. Fillenbaum et. al. (1985) [6] [7], stated that the real motivation to plan retirement comes from perception of adequacy of individual income by high income group people to take action in maintaining their status quo as regards to the standard of living and expenditures in IJSRSET173436 | Received : 06 July 2017 | Accepted : 16 July- 2017 | July-August-2017 [(3)5: 126-130] 126 retirement. People with low income don’t foresee changes in their living standards and those who come under middle class feel trapped in planning retirement or any other financial investment because they are always in condition of hand to mouth and with very less savings. III. Objective of the Study To find the investor’s perception and interest for investment in pension scheme. To get discover the influential factors that influences the perception of investors regarding investment in pension scheme. investors and to improve the marketing and selling of pension schemes. This research motivates the researchers to feel experience by interacting with the investors and guide them to analyze “The perception of the investors for Pension Schemes”. This research will help for pension provider organizations to plan the selling of pension schemes. The research has been carried out with a motive to change and access the perception of the investors and help them to get more knowledge and information for their investment. VI. Data Analysis and Interpretation IV. Research Design & Development This research study is an analytical and descriptive research [8]. It is related to the analysis of perception of investors for pension schemes. In order to conduct this study, 1000 investors of Allahabad of Uttar Pradesh state have been considered. (A). Sources of Data All the data required for this work is collected from primary and secondary sources. Mainly questionnaire has been used as a primary medium to collect data from investors. (B). Sampling Plan Targeted population: Allahabad of Uttar Pradesh state Sampling unit: Individual investors of Allahabad City of Uttar Pradesh state Sampling method: Random sampling Method Sample size: 100 (C). Hypothesis H0: Investors perceptions are independent towards pension scheme on the basis of demographic factors. H1: Investors perceptions are dependent towards pension scheme on the basis of demographic factors. V. Scope of the Study Conducted research does not investigate too much about whether the investor has a very good knowledge about pension schemes. This work indicates only a general study related to the investment perception of investors for pension schemes. This work would tell the results about the investment perception of various investors about pension schemes and thus in turn, helps the financial companies to identify the perception of various Table 1: Age Vs Attitude H M L Age Criteria 60 80 80 18 to 30 120 220 40 30 to 50 170 120 70 Above 50 Total 350 420 230 H: High, M: Medium, L: Low Total 220 420 360 1000 At 10% level of Significance with Degrees of freedom 6, the tabulated value of is 18.742 with respect to x2 value is 13.489. Since x2 calculated < Tabulated value the hypothesis is accepted and it is indicating that there is a significant association between the age of the investor and their perception for pension scheme. (As shown in Table 1) Table 2: Gender Vs Attitude Gender H M L Criteria Male 180 380 110 Female 90 190 50 Total 270 570 160 H: High, M: Medium, L: Low Total 670 330 1000 At 10% level of Significance with Degrees of freedom 2, the tabulated value of is 11.893 with respect to x2 value is 6.429. Since x2 calculated < Tabulated value the hypothesis is accepted and it is indicating that there is a significant association between the gender of the investor and their perception. (As shown in Table 2) International Journal of Scientific Research in Science, Engineering and Technology (ijsrset.com) 127 Table 3: Education Vs Attitude Education H M L Criteria 20 25 10 SSC 15 20 30 HSC 40 50 20 Under Graduate 45 55 30 Graduate 55 65 20 Post Graduate 175 215 110 Total H: High, M: Medium, L: Low Total 55 65 110 130 140 500 At 10% level of Significance with Degrees of freedom 6, the tabulated value of is 16.932 with respect to x2 value is 8.275. Since x2 calculated < Tabulated value the hypothesis is accepted and it is indicating that there is a significant association between the education of the investor and their perception. (A shown in Table 3) Table 4: Income Vs Attitude Income Criteria Up to Rs.15000 Rs.15000 to Rs.25000 Rs.25000 to Rs.35000 Rs.35000 to Rs.45000 Above Rs.45000 Total H M L Table 5: Savings Vs Attitude A D C Saving Total Criteria 80 40 210 330 Up to Rs.5000 60 60 130 250 Rs.5000 to Rs.15000 110 30 100 240 Rs.15000 to Rs.25000 40 10 60 110 Rs.25000 to Rs.35000 20 10 40 70 Above Rs.35000 310 150 540 1000 Total A: Agree, D: Disagree, C: can’t say (A shown in Table 5) At 10% level of Significance with Degrees of freedom 4, the tabulated value of is 15.612 with respect to x2 value is 23.987. Since x2 calculated > Tabulated value the hypothesis is rejected and it is indicating that there is a no significant association between the Savings of the investor and their perception. Total 60 180 70 310 80 100 50 230 110 120 40 270 50 50 30 130 30 20 10 60 330 470 200 1000 H: High, M: Medium, L: Low (As shown in Table 4) At 10% level of Significance with Degrees of freedom 4, the tabulated value of is 14.523 with respect to x2 value is 11.321. Since x2 calculated < Tabulated value the hypothesis is accepted and it is indicating that there is significant association between the income of the investor and their perception. Table 6: Occupation Vs Attitude Occupation H M L Total Criteria 130 160 70 360 Business 50 120 10 180 Farming & Allied Activities 110 90 50 250 Salaried 70 110 30 210 Any other 360 480 160 1000 Total H: High, M: Medium, L: Low (As shown in Table 6) At 10% level of Significance with Degrees of freedom 6, the tabulated value of is 18.528 with respect to x2 value is 9.329. Since x2 calculated < Tabulated value the hypothesis is accepted and it is indicating that there is a significant association between the occupation of the investor and their perception. Table 7: Primary Purpose of Investment Primary Purpose of Total Investment Safety for Principal 420 Safety for life 100 Safety for family 220 Safety for retirement 260 TOTAL 1000 International Journal of Scientific Research in Science, Engineering and Technology (ijsrset.com) 128 26% of the investors invest in Pension Schemes’ for retirement, 22% of them invest for the family safety, 10% of them invest for safety of life and 42% invest for the safety of principal amount. (As shown in Table 7) Table 8: Secondary Purpose of Investment Secondary Purpose of Total Investment Safety 520 Tax savings 160 Growth 100 High returns 220 TOTAL 1000 52% of the investors look for safety, 16% invest to save tax, 22% invest for fetching high returns and 10% invest for growth of investment. (As shown in Table 8) Table 9: Investment Avenues Investment Avenues Total Bank/Post office deposit 400 Gold 150 Pension scheme/Insurance 280 Share 170 TOTAL 1000 40% people invest in Bank/Post Office, 15% invest in Gold, 28% invest in pension schemes’ and 17% invest in capital market. (As shown in Table 9) Table 10: Risk Factor Risk Factor Total YES 420 NO 580 TOTAL 1000 42% of the mass presume that pension schemes’ is associated with risk in terms of return where as 58% of them deny the same. (As shown in Table 10) Table 11: Mobilization of Information Mobilization of Information Total Electronic Media 340 Advisors 200 Print Media 350 Other sources 110 TOTAL 1000 The information percolates to 20% investors by advisors, 35% of them get information from print media, 34% of them from Electronic media and the rest from other sources. (As shown in Table 11) Table 12: Types of Pension Scheme Types of Pension Scheme Total Pure Pension Scheme 420 Pension with Insurance 360 Scheme Market Linked Pension 140 Scheme Early Withdrawal Pension 80 Scheme TOTAL 1000 42% of the investors have their tendency to invest in pure pension scheme, 36% in pension with insurance schemes, 14% in market linked pension scheme and 8% in early withdrawal pension schemes. (As shown in Table 12) VII. Findings This research analyzes 1000 investor questioners regarding to age, gender, education level, income level, saving criteria, occupation criteria, employment criteria, investment purpose. The majority of results of this research shows investor positive perception for pension schemes. Investors of Allahabad has positive outlook for investment in pension schemes. Younger generation and level of education has positive impact for investment in pension scheme. VIII. Conclusion The work investigates the investor’s perception for different Pension schemes that are related to investment in pension schemes. Investor’s perception is positive for pension schemes and they are regularly contributing in Pension schemes. Investors have a preference for Pension schemes because they are looking for good amount after retirement. Investment protection is one of the important reasons to invest in Pension Schemes. Age, gender, qualification, income and occupation are the cheering the positive attitude of investors to invest in pension. This research work will help researcher to get knowledge about pension and will help future investors to evaluate the perception of the investors. International Journal of Scientific Research in Science, Engineering and Technology (ijsrset.com) 129 IX. REFERENCES [1]. James, Estelle. "Coverage under old age [2]. [3]. [4]. [5]. [6]. [7]. [8]. security programs and protection for the uninsured-What are the issues?." (1999). 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