PROJECT

STUDY SAVING HABITS OF RETIRED GOVERNMENT EMPLOYEES
CHAPTER 1
INTRODUCTION
Page | 1
1.1 INTRODUCTION
Saving is the important part of the economy of any nation with the saving, in various options
available to the people, the money act as the driver for growth of the country. Indian financial
prospect too presents a plethora of avenues to the investors. Though certainly not the best or
deepest of markets in the world. It has reasonable option for the average individual to
government employees to savings. To provide a platform for the retiring central government
employees to showcase commendable work done during service. This would provide
satisfaction to the retiring employee and also act as a motivator for saving employees. This
would also be a wonderful opportunity to garner the resources of retiring employees for
voluntary contribution to nation building post retirement.
Investors needs to invest and earn return on their idle resources and generate a specified sum
of money for a specific goal in life and make a provision for an uncertain future. One of the
important motives why one needs to invest wisely is to meet the cost of inflation. Inflation
causes money to drop value it will not buy the same amount of a good or service in the future
as it does now or did in the past.
Page | 2
1.2 STATEMENT OF PROBLEM
As the life expectancy has continuously increased the need for having a regular income after
retirement is highly appreciated. This call up on the need for making proper savings in certain
avenues which support their need for a regular income after retirement. Hence the problem is
to study the saving habits of retired government employees.
1.3 OBJECTIVES OF THE STUDY
1. To know about the saving habits of retired government employees.

2. To identify the satisfaction level of retired government employees investment plan.
3. To find out where retired people make their investment.
1.4 SIGNIFICANCE OF THE STUDY
The understanding of the relationship between the savings and investment pattern is essential
as savings forms the basis for the development of the economy. If the saving habits and
investment pattern among the households is good, then it results in the development of both
money and capital market and in turn the economy. The study area is featured by a good number
of salaried employees belonging to the government employees who have the ability to save and
invest. This study will help the salaried class employees to plan savings and investment towards
maximizing the returns. Savings is employment of funds with the aim of achieving an
additional income or growth in value.
Page | 3
1.5 RESEARCH METHODOLOGY
1.5.1 Research Design

The study was based on survey method. The aim of study is to find the saving habits of retired
government employees.
1.5.2 Sample Size
The sample size of the study is sixty respondents.
1.5.3 Sources of Data

The study was based on primary data and secondary data.
Primary Data
The primary data was collected from retired government employees directly by survey
involving interview with questionnaire.
Secondary Data
Secondary data was collected from published records, websites, journal etc…
1.5.4 Tools for Data Analysis
The collected data were tabulated for getting the maximum information.
a) Percentage
1.5.5 Tools for Presentation
Simple tools such as charts and diagrams are used.
Page | 4
1.6 PERIOD OF STUDY
The study has been conducted three weeks.
1.7 LIMITATIONS OF STUDY
The study was conducted subject to the following limitations:
1. The study was not free from the inherent limitations of sampling techniques.
2. The information’s was collected only from retired government employees of

MALAPPURAM district.
3. The information collected in personal in nature, so the respondents were reluctant to

disclose their actual income investment position which may affect the final conclusion.
4. There may be chance of sampling error.
CHAPTER PLAN
The project work logically divided and presented in 5 chapters.
CHAPTER 1: INTRODUCTION
The chapter is an introduction which deals with broad outline of the study statement of problem,
objective of study, research methodology etc.
Page | 5
CHAPTER 2: REVIEW OF LITERATURE
It deals with various studies and related with topic.
CHAPTER 3: THEORETICAL FRAME WORK
This chapter deals with theoretical background of saving habits of different employees.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
This chapter relating to people’s perception towards saving habits of retired government
employees with special reference to MALAPPURAM district.
CHAPTER 5: FINDINGS, SUGGESTIONS AND CONCLUSION
The chapter deals with summary, findings, suggestions and conclusion of the study.
Page | 6
CHAPTER 2
REVIEW OF LITERATURE
Page | 7
KARTHIKEYAN(2001)has conducted research on mal investor perception on post office

saving schemes and fund that there was significant difference among the four age groups ,in
the level of awareness for KISABVIKASPATRA ,national savings scheme, and deposit
scheme for Retired Employee and the overall score confirmed that the level of awareness
among investors in the old age group. Out of the factors analyzed, necessity of life and tax
benefits were two major ones that resistance
BHARDWAJ RAJESH, RAHEJAREKH AND PRIYANKA (2011), examine ―Analysis

of Income and Savings Pattern of Government and Private Senior Secondary School Teachers.
The study concluded that the major source of income of Government teachers is salary while
tuition fee for private teachers. Mostly Government & Private teachers both used Bank
Deposits and Life Insurance for investing their savings. Government school teachers received
more perks in comparison to private teachers.
Dr. S. MATHIVANNAM and Dr. M. SELVAKUMAR (2011) studied on saving and

investment pattern of school teaches – A study with reference to SIVAGASITALUK, Tamil
Nadu.‖ The study concludes that today, the teaching community has stated realizing the
importance of money and money‘s worth. They are initiated to prepare a budget for the
proposed expenses and compare it with the actual expenses met by them, so that they are not
influence by other tempting and fashionable expenses.
Dr. DHIRAJ Jain and PARUL Jain (2012) examine ―savings and investment pattern of
school teachers -a study with reference to Udaipur District, Rajasthan.
The study concluded that in today‘s world money play vital role in one‘s life and that the
importance of money has been started being recognized by the school teacher‘s community.
Dr. ANANTHAPADHMANABHAACHAR (2012) studied on ―Saving and Investment of

Teachers - An empirical study. In the ultimate analysis individual characteristics of teachers
such as age, gender, marital status, and lifestyle determined the savings and investment of
teaching community in the study region. In a more or less similar manner, their family
characteristics such as monthly family income, stage of family life cycle, and upbringing status
emerged as determinants of their savings and investment.
Page | 8
CHAPTER 3
THEORETICAL FRAMEWORK
Page | 9
SAVINGS
Saving is income not spent, or deferred consumption. Methods of saving include putting money
aside in, for example, a deposit account, a pension account, an investment fund, or as cash.
Saving also involves reducing expenditures, such as recurring costs. In terms of personal
finance, saving generally specifies low-risk preservation of money, as in a deposit account,
versus investment, wherein risk is a lot higher; in economics more broadly, it refers to any
income not used for immediate consumption.
Saving differs from savings. The former refers to the act of not consuming ones assets, whereas
the latter refers to either multiple opportunities to reduce costs; or ones assets in the form of
cash. Saving refers to an activity occurring over time, a flow variable, whereas savings refers
to something that exists at any one time, a stock variable, this distinction is often
misunderstood, and even professional economist and investment professionals will often refers
to “savings” as “savings”.
In different contexts there can be subtle differences in what counts as savings. For examples,
the part of pensions income that is spend on mortgage loan principal repayments is not spend
on present consumption and is therefore saving by the above definition, even though people do
not always think of repaying a loan as saving. However, in the U.S measurement of the numbers
behind its personal interest payments are not treated as “savings” unless the institutions and
people who receive them save them.
Savings is closely related to physical investment, in that the former provides a source of funds
for the latter. By not using income to buy consumer goods and services, it is possible for
resources to instead be invested by being used to produce fixed capital. Such as factories and
machinery. Saving can therefore be vital to increase the amount of fixed capital available,
which contributes to economic growth.
However, increased saving does not always correspond to increased investment. If savings are
not deposited in to a financial intermediary such as a bank, there is no chance for those savings
to be recycled as investment by business. This means that savings may increase without
increasing investment, possibly causing a short-fall of demand rather than to economic growth.
Page | 10
The short term, if savings falls below investment, it can lead to a growth of aggregate demand
and economic boom. In the long term if saving falls below investment it eventually reduces
investment and detracts from future growth. Future growth is made possible by foregoing
present consumption to increase investment. However savings not deposited in to a financial
intermediary amount to an (interest-free) loan to the government or central bank, who can
recycle this loan.
SAVINGS AND IMPORTANCE OF SAVINGS
Savings is the portion of income not spent on current expenditures. Because a person does not
know what will happen in the future, money should be saved to pay for unexpected events or
emergencies. An individual’s car may breakdown, their dishwasher could begin to leak, or a
medical emergency could occur. Without savings, unexpected events can become large
financial burdens. Therefore, savings helps an individual or family become financially secure.
Money can also be saved to purchase expensive items that are too costly to buy with monthly
income. Buying a new camera, purchasing an automobile, or paying for a vacation can all be
accomplished by saving a portion of income.
WHERE CAN MONEY BE SAVED
Some savers place their money in a jar, coffee can or a piggy bank. For short - periods of time
and small amounts of money, the piggy bank method may work, but long-term savers should
use a safer method. It is wise to store money at a depository institution. A depository institution
is a business that offers financial services to people, such as savings and checking accounts.
Unlike money stored at home which could be lost to a fire, burglary, or some other type of
disaster, money stored at a depository institution is protected from loss.
Page | 11
Depository institutions offer accounts that earn interest, allowing customers to take advantage
of the time value of money. The time value of money means money paid out or received in the
future is not equivalent to money paid out or received today. Interest is the price of money.
When depositing money at a depository institution, an individual may earn money from
interest. The amount of interest earned is determined by calculating a percent of the total
amount of money deposited. This percentage rate is known as the interest rate. Savings
accounts, money market deposit accounts, and Certificate of Deposits are the most common
depository institution accounts that earn interest.
A savings account is an account with a depository institution that holds money not spent on
current expenditures. Money can be kept in a savings account until the owner needs to use it
for emergencies or to purchase expensive items.
A money market deposit account is a type of account that pays a higher interest rate than a
savings account. However, money market deposit accounts usually require more money to
open and have limits on the number of times money can be withdrawn from the account every
month.
BENEFITS OF SAVING MONEY
1. Helps In Emergencies:
Emergencies are always unexpected. Therefore, when they occur, the funds required are usually
not part of the regular budget. There will be pressure to look for extra funds at a very short
notice. This problem can be compounded if the emergency is a sudden illness or car accident.
It could be a matter of life and death. Accumulated savings can go a long way in alleviating the
situation. The patient will receive the required treatment immediately. Other emergencies that
could be financed through savings are funeral expenses, urgent house repairs and even car
repairs. That said, such emergencies usually require a large sum of money.
2. Cushions Against Sudden Job Loss:

Job loss is usually traumatic; saving can be a great cushion of comfort at this time of sudden
loss of income. It is usually very difficult to borrow money when one is left jobless. Therefore,
those who have not been wise enough to save will be down to zero completely after a job loss.
Page | 12
3. Helps To Finance Vacations:

Many Singaporeans would love to go on vacation at least once a year. However, this is normally
not possible because of the lack of funds. Having accumulated savings can make the dream of
going on vacation a reality. Family and friends can enjoy a time of rest, relaxation and bonding
together. Using savings to go on vacation is a much better option than getting into debt.
4. Limits Debt:
Having some amount in savings can help one to limit the amount of debt burden that they have.
Savings can be used to finance certain expenses instead of using a credit card. This will
definitely limit the amount of debt liability and will also save the amount that could have been
spent on interest. Savings also help one to avoid taking emergency loans when urgent situations
occur, further limiting existing debt.
5. Gives Financial Freedom:

Accumulated savings gives one peace of mind and helps him or her to enjoy financial freedom.
There is a comfort in one knowing that there is a buffer than can be used if funds are needed
urgently. This is in contrast to those who live from one salary to the next. They immediately
become stuck financially if any unexpected expense arises.
6. Helps Prepare For Retirement:

There are long-term benefits of saving. One of them is having funds available for retirement.
Many retirees who rely on a pension usually do not have enough to cater to all their needs.
Making a habit of saving a small portion of one’s income over several years can accumulate
into a substantial amount of retirement fund.
This will make retirement much more comfortable.
7. Helps Finance Further Education:

Fees for further education is a major expense in Singapore. Accumulated savings will enable
one to further his or her education without having to source funds elsewhere. This will help
one to progress quickly in his or her career. This is especially beneficial for those who may
not be eligible to apply for a personal loan or education loan.
Page | 13
8. Helps To Finance The Down Payment For A Mortgage:

Having savings can be the first step towards one becoming a proud homeowner. All banks
require that a mortgage applicant places a down payment of a certain percentage before the
loan is approved. The amount to be given as a deposit cannot be borrowed. Therefore, the
applicant will need to obtain it from savings or from family and friends. Savings will be a better
option because family and friends may not have the funds required.
9. Helps To Finance A Wedding:

Weddings are a major expense in Singapore. Many couples end up postponing their ceremony
because of financial constraints. Having accumulated savings enables the couple to plan their
day confidently. Using savings to finance a wedding is a much better option than taking a
wedding loan, because the couple will start their married life together free from debt.
10. Helps To Finance The Down Payment For A Car:

Depending on the amount required for the car, one can use savings either to purchase the car in
full or pay the initial deposit for a car loan. It is more ideal for one to budget for a cheaper car
which can be fully financed by the savings, and avoid taking the car loan. This will enable the
buyer to save the money that would have been spent on interest.
From the above points, it is obvious that those who exercise the discipline of saving have a
much lower probability of entering into financial crisis. It is a worthwhile habit to adopt.
RETIREMENT
Retirement is the point where a person stops employment completely. Many people choose to
retire when they are eligible for private or public pension benefits, although some are forced to
retire when physical conditions no longer allow the person to work anymore (by illness or
accident) or as a result of legislation concerning their position.
In most countries, the idea of retirement is of recent origin, being introduced during the late
19th and early 20th centuries. Previously, low life expectancy and the absence of pension
arrangements meant that most workers continued to work until death. Germany was the first
country to introduce retirement, in 1880.
Page | 14
Nowadays most developed countries have systems to provide pensions on retirement in old
age, which may be sponsored by employers and/or the state.
Normally, Government employees have more job security and retirement benefits compared to
private sector employees. Assured pension is the major attraction of such jobs.
RETIREMENT PLANNING
Retirement is a very stress full period because during this period a person’s main source of
income that is the salary income stops completely, to avoid this stress a person must plan for
his retirement, even before the cessation of his employment.
While planning for retirement the following steps need to be considered.
STEPS FOR RETIREMENT PLANING
1. Increase Cash Reserves
Applying for pensions and social security plans takes time. The major step in retirement
planning is to keep cash reserve to cope up with the delay. These cash reserves must be in the
form of risk free and safe investments like investments in government securities, bank deposits
etc...
2. Estimate How Much Money You Need To Retire
We must develop an accurate estimate of the amount of money we spend, and the amount of
income we shall have each month. This is the most important retirement planning step that we
must take. We must consider all monthly expenses including current take- home pay, variable
costs like recreation, home improvements and vehicle repairs etc... Then consider the monthly
income that will be available from pensions, social security and other investment plans. That
is.., we must estimate our income and expenses during the retirement period accurately. If the
actual surplus obtained after meeting the expenses is not matching with our estimates then we
must reduce our expenditure, increase our savings, and look out for investments fetching higher
rates of returns
Page | 15
3. Evaluate Tax Consequences
Next important step is to evaluate the tax consequences. After finding out the estimated income
during the retirement period we need to see the tax bracket within which our income falls. If
our income falls in higher tax bracket then we must maximize our tax deductible contributions.
4. Diversify Your Investments
Watching our portfolio go up and then back down again is never enjoyable, but in the end, as
long as we end up with a big enough pot of money, it doesn’t really matter how we got there.
Once we are retired, however, it’s a different story. When we are taking regular withdrawals
from a portfolio, volatility has a much greater impact. Reducing the up’s and down’s can
significantly increase the odds that our money will last through our life expectancy. We must
spend time figuring out what mix of investments will achieve the rate of return we need while
having a level or risk that is reasonable for us. The risk/return characteristics of our portfolio
will determine how much income we will have, and how long it will last.
5. Educate Yourself
Although it is advisable to seek professional guidance, the truth is no one will ever care about
our money as much as we do. We must take time to learn about retirement planning and
investing. .We spends a significant amount of our life earning money; now it’s time to learn
how it will earn for us.
WHAT SECURITY MEANS FOR RETIRED
The majority of State and local government employees are covered by retirement systems
maintained by the States and localities. The provisions of these plans vary from one jurisdiction
to another. However, nearly all require contributions from their 75 GOVERNMENT
EMPLOYEE RETIREMENT SYSTEMS employees and nearly all guarantee benefits at least
equal to the amount of those contributions.
Page | 16
Most State and local plans permit retirement because of disability or age, and provide for early
retirement at a reduced benefit. It is usual for employees in high risk jobs, such as police officers
and fire fighters, to be eligible for retirement based only on length of service, regardless of age.
Normally, other workers must meet both age and length of service requirements. Benefits under
State and local retirement systems are usually calculated on a 3- to 5-year average salary and a
1.5- or 2.0% multiplier for each year of service. The multiplier is lower in plans where workers
are covered by Social Security and benefits are integrated with the Social Security programs.
Although relatively few systems provide survivor benefits per se; retiring workers are
commonly given the option of electing a smaller benefit in order to provide for a surviving
spouse. Paid sick leave is often provided by State and local governments to their employees.
Group life and health insurance plans are also commonly offered. Government workers are
usually covered by their State’s unemployment insurance and workers’ compensation
programs.
A NEW AVENUE IS IT STILL SECURE
Aged people are the fast-growing population today. In India we have one of the largest
populations of the elderly as compared to any other in the world. Government back up schemes
are highly promoted and it is designed in the form of a fixed deposit scheme with a onetime
premium which will be returned to the nominee on the death of the pensioner. PRINCIPLES
FOR REFORM
Over the past two years, the Senate Committee on Health, Education, work and Pensions has
held a series of hearings on the retirement system. The hearings have taken a hard look at key
aspects of the retirement system, and they have provided a clear picture of the kinds of changes
we need to ensure the system can work for everyone. Those changes can be boiled down into
the following four basic principles:
Page | 17
1. The retirement system should be universal and automatic
Most people realize that they should be preparing for retirement, but it is often difficult because
they have more immediate concerns, like paying the bills and putting food on the table. And
people are frequently overwhelmed by the complexity of the financial decisions they have to
make. However, when saving is easy and automatic, people are much more likely to put money
aside. By ensuring that every American has access to a retirement plan at work and making
participation automatic, we can drastically reduce the retirement income deficit and promote
retirement security.
2. The retirement system should give people certainty
The retirement system should give people certainty that they will have a reliable source of
income in retirement. It needs to provide people with the opportunity not just to save for
retirement but also to secure a predictable stream of retirement income that they cannot outlive.
3 Retirement is a shared responsibility.
Individuals, employers, and the government all have a role to play in ensuring that every
American has the opportunity to retire with dignity and financial independence. It is unfair for
any one party to shoulder the burden alone.
4. Retirement assets should be pooled and professionally managed
The retirement system should not force people to become investment experts. Most people
simply do not have the background, interest, or time to manage their retirement funds
effectively. Instead, it should give everyone access to prudent, professional asset management
and allow people to pool their assets with others to reduce costs and risk, including the risk of
living longer than expected. These four principles should form the framework for developing
comprehensive solutions to the retirement crisis. With a retirement income deficit of $6.6
trillion, the crisis is simply too big to ignore. We cannot continue to stand idly by as average
Americans struggle to save for retirement and our seniors continue to slip into poverty
Page | 18
LACK OF PREPARATION FOR RETIREMENT
A huge number of people approaching retirement are ill-prepared. They lack knowledge of the
financial services available to them and could lose out significantly unless they receive better
information about their choices in retirement.
1. Transition to retirement
Learning how to manage our money better is crucial when it comes to retirement. People are
simply not fully prepared to make the transition from their working lives to retirement years.
Everyday financial affairs can be complex, pension and annuities definitely so. Society, the
financial services industry, the Government and the media all have an important role to play,
to help people prepare well. Around 16% of people say they are completely unprepared for
retirement (and more than half of those are in debt).
2. Importance of financial advice
Seeking independent financial advice has never been more important. If only everyone had a
financial expert they can turn to for advice. In fact, some don’t know what an IFA (independent
financial adviser) is, or how they would go about finding one.
A financial adviser can offer expert views on analysis of annuity rates, offsetting the negative
effect of inflation, the relevance of medical conditions and knowledge of key financial
products.
While living longer, healthier and more active lives, generous pensions are far from guaranteed
and alternative, innovative ways of financing retirement need to be sought. A good financial
adviser puts every effort into understanding individual needs. This knowledge and expertise is
a key part of the retirement process and can make all the difference to a comfortable retirement.
Page | 19
3. Understanding the options
First, people need to understand what the available options are to turn their pension pot into a
retirement income. If they choose an annuity they need to understand why it’s crucial they shop
around for the best deal. They do not have to buy their annuity from their current pension
provider. This is called the open market option (often referred to as the OMO) and 42% of
customers haven’t even heard of it. This is significantly higher than in our survey last year
when almost a third (31%) said they hadn’t heard of OMO.
Equally importantly health and lifestyle can have a massive impact on the income a customer
can get through their retirement. Even the most common medical conditions or lifestyle issues
such as being overweight or a smoker can be mean more retirement income. But make the
wrong decision and there’s nothing that can be done about it.
The MGM Annuity Index shows that the difference between the worst conventional annuity
rate and best enhanced annuity rate for even what is termed
’moderate’ conditions such as diabetes can be as much as 48%. This could make a significant
difference to retirement income.
Page | 20
CHAPTER 4
ANALYSIS AND INTERPRETATION
Page | 21
TABLE 4.1
CLASSIFICATION ON THE BASIS OF AGE
Sl. No Status No. of respondent Percentage

1 Below 60 3 6%
2 60-70 42 64%
3 70-80 14 28%
4 Above 80 1 2%
Total 60 100%
(Source: primary data)
FIGURE 4.1
AGE CLASSIFICATION
80%
70%
60%
50%
40%
70% PERCENTAGE
30%
20%
10% 23%
5% 2%
0%
Below 60 60-70 70-80 Above 80
PERCENTAGE 5% 70% 23% 2%
INTERPRETATION
From the above table and figure shows the age wise classification of the samples.
It is found that majority of the respondent are between the age group of 60-70 (70%), 23% are
the age group of 70-80, 5% are below 60 and only 2% of respondents are in above 80.
Page | 22
TABLE 4.2 CLASSIFICATION ON THE BASIS OF GENDER
Sl. No Gender No .of Respondent Percentage

1 Male 28 47%
2 Female 32 53%
Total 60 100%
(Source: Primary Data)
FIGURE 4.2
GENDER CLASSIFICATION
33
32
31
30
Axis Title
29
28
27
26
MALE FEMALE
32 32 Axis Title 28
INTERPRETATION
The above table and figure shows the gender wise classification of the samples. It is clear that
out of 60 respondent 47% are male and 53% are female.
TABLE 4.3
CLASSIFICATION ON THE BASIS OF MARITAL STATUS
Page | 23
No. of Respondent
Sl. No Marital Status Percentage
1 Married 40 67%
2 Single 20 33%
Total 60 100%
FIGURE 4.3
MARITAL STATUS CLASSIFICATION
single
33%
married
single
married
67%
INTERPRETATION
From the above table and figure shows 67% of respondents are married and 33%
are single.
TABLE 4.4
CLASSIFICATION ON THE BASIS OF MONTHLY INCOME

No. Of Respondent Percentage
S l. No Monthly Income
1 Below 10000 5 8%
2 10000- 20000 20 33%
3 20000-30000 25 42%
Page | 24
4 Above 30000 10 17%

TOTAL 60 100%
FIGURE 4.4
MONTHLY INCOME
45%
40% 42%
35%
30% 33%
25%
20%
percentage
15% 17%
10%
5% 8%
0%
below100 10000- 20000- above300
00 20000 30000 00
percentage 8% 33% 42% 17%
INTERPRETATION
The above table and figure shows that, most of the respondents monthly income is between
20000-30000 (40%), 30% respondents are in the range of 10000- 20000, 20 % respondents are
above 30000 and 10% of respondents are below 10000.
TABLE 4.5
CLASSIFICATION ON THE BASIS OF PLACE OF RESIDENCE
Sl. No Place Of Residence No Of Respondent Percentage
1 Village 40 67%
2 Town 20 33%
Total 60 100%
(Source: primary data)
Page | 25
FIGURE 4.5
PLACE OF RESIDENCE
33%
67%
village town
INTERPRETATION
The above table and figure shows that 67% of respondents are in village are
and33% respondents are in town.
TABLE 4.6
PRESENT SOURCE OF INCOME
No. Of
Sl. No Source Of Income Respondent Percentage
1 Pension 40 66%
Income From House Property
2 7 12%
3 Business 6 10%
4 Post Office Saving 7 12%
Page | 26
Total 60 100%
FIGURE 4.6
SOURCE OF INCOME
post office saving 12%
business 10%
income frome house property 12%
pension 66%
0% 10% 20% 30% 40% 50% 60% 70%

income frome house
pension business post office saving
property
percentage 66% 12% 10% 12%
percentage
INTERPRETATION
The above table and figure shows the present source of income of the respondent. The majority
of respondent have pension as one of their source of income(66%),12%respondents have
income from house property ,post office saving as their source of income and only 10%
respondent have income from business.
TABLE 4.7
HAVE INVESTMENT IN INCOME
No. Of
S l .No Frequency Respondent Percentage
1 Yes 60 100%
2 No 0 0%
Total 60 100%
Page | 27
FIGURE 4.7
HAVE INVESTMENT IN INCOME

Axis Title
no 0
yes 100%
0% 20% 40% 60% 80% 100% 120% percentage
yes no
percentage 100% 0
Axis Title
INTERPRETATION
The above table and figure shows that all the respondent are investing their money.
TABLE 4.8
TYPE OF INVESTMENT
Type Of Investment No. Of
Sl. No Respondent Percentage
8%
1 Mutual Fund 5
2 LIC 20 33%
3 Gold 12 20%
Post Office Savings
4 20 33%
5 Share 1 2%
6 Others 2 4%
Total 60 100%
(Source: Primary data )
Page | 28
FIGURE 4.8
TYPE OF INVESTMENT
OTHERS 4%
SHARE 2%
POST OFFICE SAVINGS 33%
GOLD 20%
LIC 33%
mutual fund 8%
0% 5% 10% 15% 20% 25% 30% 35%
PERCENTAGE
INTERPRETATION
The above table and figure shows the type of investment. The majority of respondent prefer
LIC and post office savings are their type of investment (33%). Almost all the respondent are
preferred mutual fund (8%) gold (20%).But only 2% respondent are preferred shares and 4%
other types of investment.
TABLE 4.9
SAFEST INVESTMENT
Sl. No Investment No. Of Respondent Percentage
1 Mutual Fund 6 10%
2 LIC 20 33%
3 Gold 15 25%
Post Office
4 Savings 18 30%
5 Share 1 2%
6 Others 0 0%
Total 60 100%
Page | 29
FIGURE 4.9
SAFEST INVESTMENT
33%
30%
25%
10%
2% 0%
MUTUAL FUND LIC GOLD POST OFFICE SHARE OTHERS

SAVINGS
PERCENTAGE
INTERPRETATION
The above table and figure shows the safest investment of respondent. The majority of
respondent are selected post office saving as their safest investment (33%), 30% are selected
LIC, 25are selected gold as their safest investment and none the respondent are selected others.
Page | 30
TABLE 4.10
REASON FOR INVESTMENT
No. Of
Sl. No Reason Respondent Percentage
Children
1 Education 20 33%
2 Marriage 10 17%
3 Medical Cover 15 25%
Income For Old
4 Age 15 25%
Total 60 100%
FIGURE 4.10
REASON FOR INVESTMENT

Z
35%
30%
25%
20%
33%
15%
25% 25%
10%
17%
5%
0%
CHILDREN EDUCATION MARRIAGE MEDICAL COVER INCOME FOR OLD AGE
INTERPRETATION
The above table and figure shows the reason for investment. 33% of respondent are invested
for children education, 25%medical cover and income for old age. Only 17% of respondent
are invested for marriage.
Page | 31
TABLE 4.11
HAVE GOT INFORMATION BEFORE INVESTMENT
No. Of
SI .No Criteria Respondent Percentage
1 Yes 56 93%
2 No 4 7%
Total 60 100%
FIGURE 4.11
HAVE GOT INFORMATION BEFORE INVESTMENT

100%
90%
80%
70%
60%
50%
93%
40%
30%
20%
10%
7%
0%
YES NO
PERCENTAGE
INTERPRETATION
The above table and figure shows that 93% of respondent have got information before making
investment. And 7% of respondent have not got any information before making investment.
Page | 32
TABLE 4.12
EXPECTED RATE OF RETURN
Sl. No Rate No. Of Respondent Percentage

1 0-20% 6 10%
2 20%-40% 19 32%
3 40%-60% 15 25%
4 60%-80% 20 33%
5 80%-100% 0 0%
Total 60 100%
FIGURE 4.12
RATE OF RETURN
80%-100% 0%
60%-80% 33%
40%-60% 25%
20%-40% 32%
0%-20% 10%
0% 5% 10% 15% 20% 25% 30% 35%
INTERPRETATION
The above table and figure shows the expected rate of return by the respondent. Most of the
respondent say their expected rate of return is 60%- 80% (33%). 32% of respondent say it is
between 20%-40%, 25% of respondent say it is 40% - 60% and no one say it is in 80%-100%.
Page | 33
Table 4.13
ATTRACTIVE FEATURE
(Source: Primary )
SI.NO Features No. of respondent Percentage

1 Safety 25 41.6%
2 Liquidity 15 25%
3 Protection 11 18.3%
Low risk 9 15%
4
Total 60 100%
FIGURE 4.13
45.00%
41.60%
40.00%
35.00%
30.00%
25%
25.00%
20.00% 18.30%
15%
15.00%
10.00%
5.00%
0.00% percentage
1 2 3 4
INTERPRETATION
The above table and figure shows the features that attracts investors before
making an investment. Majority of the respondent feel that the most attractive
feature of investment should be safety (38%) and protection (30%).18% of
respondents says their attractive feature is liquidity and 14% are says it is low
risk.
Page | 34
TABLE 4.14
TIME PERIOD OF INVESTMENT

No. Of
Sl. No Period Respondent Percentage
1 Short Term 12 20%
2 Medium Term 21 35%
3 Long Term 27 45%
Total 60 100%
FIGURE 4.14
TIME PERIOD
20%
45%
35%
short term medium term longterm
INTERPRETATION
The above table and figure shows the time period of investment of the respondent. The majority
of respondent are select long term as their time period (45%), 35% are says it is in medium
team and only 20% of respondent are select short term.
Page | 35
TABLE 4.15
SOURCE OF INFORMATION
No. Of Respondent
Sl. No Sources Percentage
1 News Paper 21 35%
2 Friends 6 10%
3 Relatives 18 30%
4 Others 15 25%
Total 60 100%
FIGURE 4.15
SOURCES
others
25%
relatives
30%
percentage
friends
10%
newspaper
35%
0% 5% 10% 15% 20% 25% 30% 35% 40%
INTERPRETATION
The above table and figure shows the source of information of the respondent. The majority of
the respondent says their sources of information is newspaper, 30% of respondent have got
information from relatives 25% have got from others sources and only 10% from friends.
Page | 36
TABLE 4.16
FREQUENT CHANGES IN INVESTMENT
( No. Of Respondent
Sl. No Frequent Changes Percentage
1 1 Month 20 33.3 %
2 1/6 Month 5 8.3%
3 1 Year 25 41.6%
4 Above 1 Year 10 16.6%
Total 60 100%
Page | 37
FIGURE 4.16
FREQUENT CHANGES
percentage
45.00%
41.60%
40.00%
33.30%
35.00%
30.00%
25.00%
20.00%
15.00% 16.60%
10.00% 8.30%
5.00%
0.00%
1 month
1/6month
1year
above 1 year
INTERPRETATION
The above table and figure shows the frequent changes in investment of the respondent. The
majority of respondent are changed their investment in1year(41.6%), 33.3% of respondents
changes their investment in 1 month, 16.6% of respondents changes their investment in above 1
year and 8.3% respondent are changed investment in 1/6 month.
TABLE 4.17
TYPE OF RETURN
Sl. No Type Of Return No. Of Respondent Percentage

Regular And Steady Return
1 40 66.6%
2 Lump Sum Return 8 13.3%
3 Pension Type Return 12 20%
Total 60 100%
Page | 38
FIGURE 4.17
TYPE OF RETURN
70.00%
60.00%
50.00%
40.00%
66.60%
30.00%
20.00%
10.00% 20%
13.30%
0.00%
regular and study return lump sum return pension type return
percentage
INTERPRETATION
The above table and figure shows the type of return opted by the respondent. Majority are says
regular and steady is their type of return(766.6%).20% of respondents are say their type of return
is pension and 13.3% are say lump return is their type of return .
TABLE 4.18
INVESTMENT PATTERN
Investment Pattern
Sl. No No. Of Respondent Percentage
1 Daily 3 5%
2 Monthly 53 88.3%
3 Occasionally 4 6.6%
Total 60 100%
Page | 39
FIGURE 4.18
INVESTMENT PATTERN
occassionally 6.60%
monthly 88.30%
daily 5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
percentage
INTERPRETATION
The above table and figure shows the investment pattern of the respondent. The majority of
respondents are invested monthly (88.3%), 6.6% of respondents are invested occasionally and 5%
are invested daily.
TABLE 4.19
SATISFACTION LEVEL
No. Of Respondent
Sl. No Satisfaction Level Percentage
1 Satisfied 60 100%
2 Dissatisfied 0 0%
Total 60 100%
Page | 40
FIGURE 4.19
SATISFACTION LEVEL
0%
satisfied
dissatisfied
100%
INTERPRETATION
The above table and figure shows the satisfaction level of the respondent with their investment.
100% of respondents are satisfied with their investment and none of the respondent are
dissatisfied.
Page | 41
CHAPTER 5
SUMMARY, FINDINGS, SUGGESTIONS AND
CONCLUSION
Page | 42
SUMMARY
Through the previous chapters we have seen the introduction and the relevance of the study and
importance of the study. The main objective of the study is to know about the saving habits of
retired government employees. For this purpose I have collected data from primary and secondary
source. The important source of primary data is collected through a direct interview with the
retired government employees. In order to present the data some tools of presentation like bar
diagram, pie diagram, etc. are used. The sample size of the study is 50 respondents. The analysis
and interpretation is made based on the sample.
The report is presented in the following order. The first chapter deals with the introduction,
objectives of the study, significance of the study, research methodology, sample size, tools used
for data collection and analysis etc. The second chapter deals with the review of literature and
third chapter deals with theoretical framework of the study. The fourth chapter deals with data
analysis and interpretation has been developed for analyzing the data that are collected through
the questionnaires.
Page | 43
FINDINGS OF THE STUDY
 Majority of respondents that is 64% are in the age group of 60-70.

 Most of the respondents are female.
 Most of the respondents are married.
 Most of respondents that is 60% are from village.
 Majority of respondents have pension as their major source of income. Only few have income
from house property, business and post office savings as their source of income.
 Majority of respondents have investment in post office savings and LIC.
 Majority of respondents have selected post office savings as their safest investment.
 Majority of respondents have made investments for getting a source of income for old age,
children education and medical cover (30%), only 10% of the respondents have made for
marriage purpose.
 Majority of respondents that is 92% are seek advice before making investment.
 Majority of the respondents says their expected rate of return from investment is 60%-80%,
30% of respondents says it is between 20% -40%, 24% of respondents say it is in between
40%-60% and 8% of respondent says it is below 20%.
 Majority of respondent that is 38% feels that the most attractive feature of an investment should
be safety.
 Majority of respondent are selected long term (44%) as their time period of investment.
 Majority of respondent says they got investment information from newspaper (36%), 28% of
respondent have got information from relatives, 20% have got from other source and only 16%
from friends.
 Majority of respondents changes their investment in 1 year (64%).
 Majority of respondents that is 76% are opted regular and steady return.
 Majority of respondents are invested in monthly basis.
 100% of respondents are satisfied with their investment.
Page | 44
SUGGESTIONS
 Investment help to retired people risk free security help to maintain their standard of
living know more about investment scheme.
 It is better to the old age people that invest their money have heard of post office saving,
gold, LIC, mutual fund etc…
 A general trend is that investing in post office saving bank account and government
securities give high interest rate and government banking is helps to save their amount.
 Today there are so many special investment schemes in market which encourage people
for the savings.
 To enhance the saving habits the saving mode must attract people by providing many
offers and new attractive schemes.
 Employees should concentrate on medium term investment rather than long term and
short term
Page | 45
CONCLUSION
The study conducted revealed that the level of awareness among respondents
regarding each investment is average. There is a general trend in investing in post office savings
and LIC. The main purpose of investment is income for old age, children education and medical
cover. It seems that only a few respondents took up modern investment alternatives like mutual
fund, shares etc.. The most attractive feature which attracts investment is safety. The study also
showed that majority of respondents are satisfied with their savings or investment
Page | 46
APPENDIX
QUESTIONNAIRE
Sir,
I am a sixth semester B.com student of JAMIA NADWIYA ARTS & SCIENCE COLLEGE
EDAVANNA I am conducting a study on “SAVING HABITS OF RETIRED
GOVERNMENT EMPLOYEES WITH SPECIAL REFERENCE TO
MALAPPURAM DISTRICT” as part of my B.Com dissertation. I would be obliged if
you kindly fill up the questionnaire which is required for collecting data for my B.Com
dissertation .I assure you that I will keep the information confidential and use only for my
academic purpose.
1. Name :
2. Age :
3. Sex : Male Female
4. Marital status:
5. Place of residence:
Village Town
6. Monthly income
Below 10000 10000- 20000
20000- 30000 Above 30000
Page | 47
7. What is your present source of income?
Pension Income from house property
Business Post office saving
8. Are you investing your source of money?
Yes No
9. Which type of investment you prefer?
Mutual fun LIC Gold
Post office saving Share Others
10. Which is the safest investment from the following?
Mutual fund LIC Gold
Post office saving Share Others
11. What is the main reason for your investment?
Children education Marriage
Medical cover Income for old age
12. Have you got any information before making investment?
Yes No
13. What was your expected rate of return from your investment?
0-20% 20%-40% 40%-60%
60%-80% 80%-100%
Page | 48
14. What feature attracts you in an investment?
Safety Liquidity
Protection Low risk
15. What is the time period you prefer to investment?
Short term Medium term Long term
16. Where do you get investment information?
Newspaper Friends
Relatives Others
17. How frequently you change your investment?
1month 1/6 month
1 year Above1 year
18. What type of return you prefer on your investment?
Regular and steady return
Lump sum return
Pension type return
19. How do you invest your money?
Daily Monthly Occasionally
20. Are you satisfied with present investment scheme?
Satisfied Dissatisfied
Highly satisfied highly dissatisfied

Neutral
Page | 49
BIBLIOGRAPHY
Books
1. S. Kevin, Portfolio Management, PHI Learning Private Limited Page No: 1018
2. PREETI Singh, Investment Management, Himalaya Publishing House Private Limited, Page
No: 1-10, 185-219.
3. INDERPAL Singh, JASWINDERKAUR, Investment management KALYANI Publishers,

Page No: 1.3-1.4, 1.9-1.11.
Websites www.investopedia.com
 www.economictimes.indiatimes.com
 www.ijoart.org/docs/Investment-Avenues.pdf
Page | 50

PROJECT

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PROJECT

Uploaded by

Copyright:

Available Formats

STUDY SAVING HABITS OF RETIRED GOVERNMENT EMPLOYEES

1.2 STATEMENT OF PROBLEM

1.3 OBJECTIVES OF THE STUDY

1. To know about the saving habits of retired government employees.

1.4 SIGNIFICANCE OF THE STUDY

1.5 RESEARCH METHODOLOGY

1.5.1 Research Design

1.5.2 Sample Size

The sample size of the study is sixty respondents.

1.5.3 Sources of Data

1.5.4 Tools for Data Analysis

1.5.5 Tools for Presentation

Simple tools such as charts and diagrams are used.

1.6 PERIOD OF STUDY

The study has been conducted three weeks.

1.7 LIMITATIONS OF STUDY

The study was conducted subject to the following limitations:

2. The information’s was collected only from retired government employees of

3. The information collected in personal in nature, so the respondents were reluctant to

4. There may be chance of sampling error.

The project work logically divided and presented in 5 chapters.

CHAPTER 2: REVIEW OF LITERATURE

It deals with various studies and related with topic.

CHAPTER 3: THEORETICAL FRAME WORK

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

CHAPTER 5: FINDINGS, SUGGESTIONS AND CONCLUSION

KARTHIKEYAN(2001)has conducted research on mal investor perception on post office

BHARDWAJ RAJESH, RAHEJAREKH AND PRIYANKA (2011), examine ―Analysis

Dr. S. MATHIVANNAM and Dr. M. SELVAKUMAR (2011) studied on saving and

Dr. ANANTHAPADHMANABHAACHAR (2012) studied on ―Saving and Investment of

SAVINGS AND IMPORTANCE OF SAVINGS

WHERE CAN MONEY BE SAVED

BENEFITS OF SAVING MONEY

2. Cushions Against Sudden Job Loss:

3. Helps To Finance Vacations:

5. Gives Financial Freedom:

6. Helps Prepare For Retirement:

7. Helps Finance Further Education:

8. Helps To Finance The Down Payment For A Mortgage:

9. Helps To Finance A Wedding:

10. Helps To Finance The Down Payment For A Car:

STEPS FOR RETIREMENT PLANING

1. Increase Cash Reserves

2. Estimate How Much Money You Need To Retire

3. Evaluate Tax Consequences

4. Diversify Your Investments

WHAT SECURITY MEANS FOR RETIRED

A NEW AVENUE IS IT STILL SECURE

1. The retirement system should be universal and automatic

2. The retirement system should give people certainty

3 Retirement is a shared responsibility.

4. Retirement assets should be pooled and professionally managed

LACK OF PREPARATION FOR RETIREMENT

2. Importance of financial advice

3. Understanding the options

ANALYSIS AND INTERPRETATION

CLASSIFICATION ON THE BASIS OF AGE

Sl. No Status No. of respondent Percentage

TABLE 4.2 CLASSIFICATION ON THE BASIS OF GENDER

Sl. No Gender No .of Respondent Percentage

CLASSIFICATION ON THE BASIS OF MARITAL STATUS

MARITAL STATUS CLASSIFICATION

CLASSIFICATION ON THE BASIS OF MONTHLY INCOME