Importance of Retirement Planning

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What are the key factors that govern the investment patterns of investors?

The living standard and expenses are the key factors that govern the investment patterns of investors.

Why is planning for retirement important according to the text?

Planning for retirement is important due to life expectancy growth and the need to maintain living standards post-retirement.

What is the primary source of wealth accumulation according to the text?

Income is the primary source of wealth accumulation.

How can external factors affect an individual's income levels?

External factors can lay pressure on income levels due to the unpredictability of the future and unexpected expenses. Signup and view all the answers

Why does retirement planning provide room for financial security despite being imperfect?

Retirement planning provides room for financial security as wealth accumulation can be planned, even though it may not be perfect. Signup and view all the answers

Why is the gender perspective important in retirement planning?

Gender perspective is important in retirement planning as financial needs may vary depending on gender. Signup and view all the answers

What are some factors that can affect retirement planning?

Social, economic, political factors Signup and view all the answers

Why is it important for individuals to plan for retirement?

To avoid financial insecurity in old age Signup and view all the answers

What is a major concern regarding retirement planning in India?

Underdeveloped pension market and limited annuity options Signup and view all the answers

Why is it important to reform the withdrawal and taxation features of the National Pension Scheme?

To increase participation and faith in the scheme Signup and view all the answers

What are some unreliable sources of support for retirement planning?

Social security measures, employer benefits, family support Signup and view all the answers

Why is the maturity of financial markets in India questioned in relation to retirement planning?

Low participation, sentiment-driven Signup and view all the answers

What are the three commonly used theories associated with retirement planning behavior?

Individual choice perspective, life course perspective, cumulative advantage perspective Signup and view all the answers

According to the individual choice perspective, how is retirement viewed?

As a stage in life that is planned and worked toward by the individual. Signup and view all the answers

What factors can affect retirement planning according to research?

Experience, age, education, gender, income, etc. Signup and view all the answers

What does the cumulative advantage theory suggest about retirement options?

Investment in oneself results in higher income and increases retirement options. Signup and view all the answers

How does the situational approach influence retirement planning?

Anticipating retirement depends on the situational approach toward their future life. Signup and view all the answers

Explain the differences between individual choice theory and cumulative advantage theory in retirement planning.

Individual choice theory focuses on personal preferences and planned retirement, while cumulative advantage theory emphasizes past successes and human capital investment. Signup and view all the answers