Asian Journal of Economics, Business and Accounting

The retirement age of people in India is around 60 years, and the life expectancy is around 70 years. So, the obvious question is how a person after retirement fulfils their requirement without active earning. Today they are of an age where they can work hard and make money, but in future, the situation will change. With old age, the working capacity will decrease, various expenses will arise, and the children or other family members may not support them, so they must have a plan for the future. Here comes the importance of retirement plans and pensions. Pension is a concept which provides good relief and support to people in old age after retirement. The study aims to find the level of awareness and interest regarding future planning and the available retirement plans. Every person needs to retire after a certain age. At that time, they want a peaceful life after a long journey of hustle, and this can be achieved with the help of a monthly pension. Basic research was conducted with the sample size of 200 workers engaged in different sector. For it, questionnaire and personal interview method were carried on. There are various retirement plans, announced by the government, available for all segments of society, say, government employees, private employees, or self-employed people. All Government employees have to compulsorily contribute to the NPS (National Pension System) or UPS (Unified Pension Scheme). Likewise, private employees of the organized sector also have their EPF (Employees’ Provident Fund) Account where a fixed per cent of their basic salary goes into this fund every month. In the case of compulsory monthly deduction, a big pool of money is created without feeling an extra burden on employees. But what about the people other than them? The workers of unorganized sectors like daily laborers, employees of shops & malls, housemaids, street vendors, rickshaw pullers, small shopkeepers or any other self-employed people also need financial support in their old age. It is seen that they are not very aware of planning for their retirement and therefore, they find difficulties in their old age. Financial independence is very important at that age also. Sometimes, they have to work even after the working age to live a life, or they have to beg before someone. So, this article is mainly focused on the retirement planning of these unorganized workers and self-employed people. A case study of the workers of Ranchi city regarding this is also included in this article.