“IMPACT OF PENSION AND GRATUITY IN THE LIFE

OF RETIREES WITH RESPECT TO VELLANGALLUR

PANCHAYATH”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE

Submitted by

AMRITHA JAYAGOPAL
(CCASBCM081)

Under the supervision of

Mrs. SIJI PAUL V

DEPARTMENT OF COMMERCE

CHRIST COLLEGE(AUTONOMOUS), IRINJALAKUDA

MARCH 2021

1
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

UNIVERSITY OF CALICUT

DEPARTMENT OF
COMMERCE CERTIFICATE

This is to certify that the project report entitled “IMPACT OF PENSION

AND GRATUITY IN THE LIFE OF RETIREES WITH RESPECT
TO
VELLANGALLUR PANCHAYATH” is a bonafide record of project done
by AMRITHA JAYAGOPAL, Reg. No. CCASBCM081, under my guidance
and supervision in partial fulfillment of the requirement for the award of the
degree of BACHELOR OF COMMERCE and it has not previously formed the
basis for any Degree, Diploma and Associateship or Fellowship.

PROF. K. J. JOSEPH Mrs. SIJI PAUL V

Co-ordinator Project Guide

2
 DECLARATION

I, AMRITHA JAYAGOPAL, hereby declare that the project work

entitled “IMPACT OF PENSION AND GRATUITY IN THE LIFE OF
RETIREES WITH RESPECT TO VELLANGALLUR PANCHAYATH” is a
record of independent and bonafide project work carried out by me under the
supervision and guidance of Mrs. Siji Paul V, Assistant Professor, Department
of Commerce, Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Irinjalakuda AMRITHA JAYAGOPAL

Date: 29/03/2021 CCASBCM081

3
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere gratitude to Rev. Dr. Jolly Andrews, Principal-
in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. K. J. Joseph, Co-ordinator of B.Com (Finance), for

providing proper help and encouragement in the preparation of this report.

I am thankful to Mr. Lipinraj K., Class teacher for their cordial support,
valuable information and guidance, which helped me in completing this task
through various stages.

I express my sincere gratitude to Mrs. Siji Paul V, Assistant Professor, whose

guidance and support throughout the training period helped me to complete this
work successfully.

I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my

college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.

4
 TABLE OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-5

CHAPTER 2 REVIEW OF LITERATURE 6 - 11

THEORETICAL
CHAPTER 3 12 - 18
FRAMEWORK

DATA ANALYSIS AND

CHAPTER 4 19 - 36
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 37 - 40
& CONCLUSION

BIBLIOGRAPHY 41

APPENDIX 42 - 45

5
 LIST OF TABLES

TABLE TABLES PAGE NO.

NO.

4.1 Showing gender wise classification 19

4.2 Showing retirement age wise classification 20

4.3 Showing work experience of the respondents 21

4.4 Showing the annual income of the respondents 22

during their working period

4.5 Showing the percentage of the current salary 23

contributed to pension and gratuity plans

4.6 Showing the respondents who have well 24

information about their pension and
gratuity plan

4.7 Showing the respondents satisfaction with the 25

overall pension and gratuity plan offered by the
current employer

4.8 Showing respondents knowledge on the 26

approximate amount the employer contributes
to pay for the pension and gratuity plan

6
4.9 Showing whether the plan allows the 27
respondents to choose how their money
is invested

4.10 Showing how considered are the respondents 28

about the security of the money in their pension
and gratuity plan

4.11 Showing whether they know how much will 29

they get from that plan after leaving
the employer

4.12 Showing how early the respondent will get 30

their money from pensions and gratuity if
he/she left the employer tomorrow

4.13 Showing the benefit of current pension 31-32

and gratuity plan based on some criteria

4.14 Showing what payout option respondent 33-36

choose from their retirement plans and how
important is each of the following
consideration

7
 LIST OF FIGURES

FIGURE FIGURES PAGE

NO.
NO.

4.1 Showing gender wise classification 19

4.2 Showing retirement age wise classification 20

4.3 Showing work experience of the respondents 21

4.4 Showing the annual income of the 22

respondents during their working period

4.5 Showing the percentage of the current salary 23

contributed to pension and gratuity plans

4.6 Showing the respondents who have well 24

information about their pension and gratuity
plan

4.7 Showing the respondents satisfaction with 25

the overall pension and gratuity plan offered
by the current employer

4.8 Showing respondents knowledge on 26

the approximate amount the employer

8
 contributes to pay for the pension and
gratuity plan

4.9 Showing whether the plan allows the 27

respondents to choose how their money is
invested

4.10 Showing how considered are the 28

respondents about the security of the money
in their
pension and gratuity plan

4.11 Showing whether they know how much 29

will they get from that plan after leaving
the employer

4.12 Showing how early the respondent will 30

get their money from pensions and
gratuity if he/she left the employer
tomorrow

4.13 Showing the benefit of current pension 31-32

and gratuity plan based on some criteria

4.14 Showing what payout option respondent 33-36

choose from their retirement plans and how
important is each of the following
consideration

9
 CHAPTER 1

INTRODUCTION

10
1.1 Introduction

Pension and gratuity systems are sensitive issues especially in low-income

places like vellangallur, where most employees neither have any meaningful
retirement benefits nor earn enough during their working lives to cater for their
retirement period. The lifestyle of many employees depends to a large extent on
many factors, some of which include one’s culture, his preferences, level of
resources, and the surrounding economic and social environmental factors. The
subject of retirement has been attracting increasing attention in many
organizations in Vellangallur. Many factors account for this renewed emphasis:
a) No employee is expected to work throughout his/her entire life on earth;
arrangements must be made for old age. b) The life expectancy of many
workers has increased and a majority of them are expected to work until they
retire. Even those who believe that death could come at any time have the hope
that their retirement benefits would be given to their next of kin. c) The
extended family system, which in the past helped retirees, is gradually losing
its impact to western culture and influence. d) There is increasing awareness
and emphasis that people no matter the age should learn to be independent or
self-supporting. e) The government has enacted laws encouraging employers to
pay retirement benefits and gratuities to qualified retirees.

Employees too are encouraged to contribute to pension plans, stock

options or other forms of differed compensation contracts until retirement age.
Due to the above scenario, employees and retirees are advocating and agitating
for more enlightenment and education in planning for retirement life.
Employers too are not left out as more and more qualified and productive
manpower is demanding for greater security at work and financial benefits and
pension after retiring. For employees, there is a fundamental desire to keep
updating their skills and improving their productivity in order to earn more and
be able to cater for the present and indeed the future, which is the period of
retirement from regular paid employment. The evolution of paid employment
precipitated the concept of pension. The idea is that since workers spend
the whole of their
11
productive lives working for their employers, they (employers) in turn should,
of necessity, make adequate plan for the up-keep of their workers after they
retire from active service. Pension, simply put, connotes a form of official
obligation in any employment relationship. It is a legal and economic
obligation in which employers of labour are mandated to fulfil in her
contractual relationship with employees. It is a form of employers’ benevolence
towards employees. Pension plans are usually established by a legal document
called a trust deed with the declaration that the funds would be administered in
accordance with the rules spelt out in the document. Employers offer pension
benefits to attract, retain and reward employees. Employees, on the other hand,
rely on retirement benefits as a form of financial security in their less
productive years.

Social security systems have become major elements of social development in

the twentieth century, with particularly important effects on the well-being of
older persons in our society. The past few years in Vellangallur have witnessed
concerted efforts by the various successive governments in the country at
improving the living standards among the older category, particularly with
similar shifts in pension reforms, its payments and the maturing of pension
plans. Social security is the range of collective social protection measures
designed to provide compensation for loss or reduction of income. It meant to
affect financial hardships suffered by workers as a result of deprivation. Its
primary objective is to ensure freedom from want by collective provision for
those who, because of misfortune, are temporarily or permanently without
sufficient resources for their subsistence. Social security is therefore, a basic
social protection provided to vulnerable members of the society against
deprivation and destitution. This project critically examines the impact of
pension and gratuity in the life of retirees with respect to Vellangallur
panchayat.

12
1.2 Statement of the problem

Social security systems have become major elements of social development in

the twentieth century, with particularly important effects on the well-being of
older persons in our society. The past few years in Vellangallur panchayat have
witnessed concerted efforts by the various successive governments in the country
at improving the living standards among the older category, particularly with
similar shifts in pension reforms, its payments and the maturing of pension
plans. Social security is the range of collective social protection measures
designed to provide compensation for loss or reduction of income. It is in view
of the above this study intends to investigate the impact of pension and gratuity
on the life of retirees with respect to Vellangallur panchayat.

1.3 Scope of the problem

When people come to retire, they will experience a reduction in income, a

pension make up for some of this loss of income. In retirement pension
schemes can provide protection in the form of lumpsums and pensions to
dependants in the extent of a member’s death. Gratuity is also an important
social security benefit for the employee. Therefore, the study aims at analysing
the impact of pension and gratuity in the life of retirees with respect to
Vellangallur panchayat.

1.4 Objectives of the study

1) To study about the impact of pension in the life of retirees with respect to
Vellangallur panchayat.

2) To study about the impact of gratuity on the life of retirees with respect to
Vellangallur panchayat.

3) To understand the benefits and retiree’s satisfaction on pension and gratuity

policy.

13
1.5 Research Design

The research design refers to the overall strategy that you choose to integrate
the different components of the study in a coherent and logical way,
thereby, ensuring you will effectively address the research problem; it
constitutes the blueprint for the collection, measurement, and analysis of data.

1.5.1 Nature of the study

The study is descriptive. A descriptive research design can use a wide variety
of research methods to investigate one or more variables. This study aims to
describe a population situation or phenomenon systematically and accurately.

1.5.2 Nature of data

Both primary and secondary data are required for the study.

Primary data collected through a well-structured questionnaire is taken from

the peoples of Vellangallur panchayat.

Secondary data are collected from various websites, journals, books, etc.

1.5.3 Sources of data

Data are collected from retired peoples of Vellangallur panchayat.

1.6 Sample design

A sample design is the framework, or road map, that serves as the basis for the
selection of a survey sample and affects many other important aspects of a survey
as well.

1.6.1 Nature of population

A population is a group of individuals, objects, or items from which samples

are taken for measurement. Population in this study includes retired peoples of
Vellangallur panchayat.

14
1.6.2 Sample unit

Sample unit refers to one number of a set of entities being studied. The retired
peoples of Vellangallur panchayat are the sampling unit under this study.

1.6.3 Method of sampling

The method of sampling used for the study is the snowball sampling technique.

1.6.4 Size of samples

The size of the samples used for collecting the data is 50 respondents.

1.7 Tools for analysis

Questionnaire, Percentage and graphs are used for data collection, analysis, and
interpretation of collected data.

1.8 Limitations

 Findings of the survey are based on the assumption that the respondents
have given correct information.
 The sample may not be considered as a good representative of the whole
population.
 Some of the respondents were reluctant to answer.

1.9 Chapterisation

 Chapter 1: This chapter includes the introduction to the study, statement

of the problem, scope of the study, objective of the study, hypothesis,
sample design and limitations.
 Chapter 2: Review of literature.
 Chapter 3: Theoretical framework
 Chapter 4: Data analysis and interpretation.
 Chapter 5: Findings, suggestion and conclusion.

15
 CHAPTER 2

REVIEW OF LITERATURE

16
2.1 Empirical literature
1. Ayanendu sanyal & Charan singh (August 2013) in their study on
“Universal pension scheme in India” they propose a universal pension scheme
that will bring relief to the working population in the unorganized sector and
argues that it will increase the coverage of pension without disturbing the fiscal
situation. Universal pension scheme would do this successfully for citizens in
country.

In his paper they are also compare following social security scheme like Civil
Service Schemes Employee’s Provident Fund Organisation Schemes (EPFO),
Occupational Pension Schemes, Public Provident Fund, National Old Age
Pension Scheme, and National Pension Scheme. In paper they forecast Pension
estimates are made for 2015, 2025, and 2050.

2. Patricia Justino (September 2003) in their study on “social security in

Developing countries: Myth or Necessity? Evidence from India.” Examined the
case for the implementation of social protection policies in developing
countries. Especially India and his relates to the issue of who will benefit from
social security programmes. He also told the poorest individuals in India are
those belonging to minority religions and ethnic group’s lower castes (scheduled
castes and tribes), women, those living in remote location, with limited access
to productive assets and institutions and employed in insecure jobs. He
illustrates the extent of income poverty in 14 major Indian states in 1973-74
and 1999- 2000.

By the help of graph and chart shows that poverty decreased consistently in
India between 1970 and 1999.in working paper also discuss regarding National
Social Assistance Programme (NSAP) encompasses a national policy for social
assistance benefits to poor households in the case of old age, death of
breadwinner and maternity.

In his research paper examine the empirical effects of public expenditure on

social services on both the growth performance of the India's economy and the

17
incomes of the poor. In his research obtained in this paper show, however that
expenditure on social services can have important endogenous effects on
economic growth in India, one of the poorest countries in the world.

3. Ajay Shah (June 21, 2005) in his study on "Indian pension reforms: A
sustainable and scalable approach" give point on why pension reform in India
in paper he also describes existing pension mechanism and their difficulties in
traditional civil servants’ pension and employee provident fund (EPF) and
'Employee Pension Scheme’. In his paper he also relates present pension
system and its fiscal cost. This paper discuss about new pension system
feasibility of implementation and its portability.

4. Sukhen Kali (November 2012) In her study on "Empirical Study on

Retirement benefits of Government Employees and Private Sector Employees
(covered by EPF and MP act) in India" in his research mainly comparative
study of occupational retirement benefit plans of the Government employees
and the employees of private sector. The research is based on a source of
secondary data. The data are collected from the government service rules,
Death cum Retirement Rules (DCRB), and National Pension Portals for the
retirement benefits of the Government employees and from the websites and
annual reports published by the Employees. Provident funds organization and
the ministry of labour. The hypothesis of study is "There is no significant
difference in the retirement benefits between the Government employees
Group A and Group D) and private sector employees (employees covered
under the employee’s provident funds and miscellaneous provisions Act,
1952)". The result of study is said that there is a significant difference in the
retirement benefits between the Government employees and private sector
employees of both group A and group D. Taking the contribution of employer
only to the Employees provident fund for private sector employees.

5. Swarn Chatterjee (August 2010) in his study on "Retirement savings of

Private and Public Sector Employees: A comparative study" examines the
retirement plan participation and savings for United States Government

18
employees using the panel study of income dynamics data set. The findings of
this study indicate that plan participation increases with age, income and
educational attainment. More Government employees are enrolled in defined
benefit plans than non- Government employees. In his study that are taken from
Panel Study of Income Dynamics (PSID)is an ongoing nationally
representative longitudinal study of approximately 8000 families living in the
United States. Employee participation in tax sheltered accounts is the
dependent variable for the first part of this study. Descriptive statistical analysis
is initially performed for examining the demographic composition, educational
attainment, income and investment characteristics of Government and private
sector employees. The second part of the study investigates factors that
determine the amount of savings in defined contribution plans and the amount
of voluntary contribution that employees make into their retirement plans. The
findings reveal that although the Government employees lag behind in defined
contribution plan participation, the participating Government employees hold
greater wealth in these plans. Also, in order to better prepare employees for
retirement they must be encouraged to have greater risky asset ownership and
IRA participation.

6. Edogbanya Adejoh (2013) in study on "An Assessment of the impact of

contributory pension scheme to Nigerian economic Development" This
research work is focused on the assessment of the impact of contributory
Pension Scheme to Nigerian Economic Development with relevance to Pension
fund manager. The objective of this study was to examine how contributory
pension scheme influence the Gross Domestic Product (GDP) in Nigeria. More
so, this study is aimed at suggesting the best reliable way for tackling or
handling the fear that the funds for Retiree Savings Account (RSA)
contribution can be mismanaged by the existing trustees. The main problem of
the study was centred on the nature and effect of risk prevailing in the pension
assets management. Researcher designed the study using survey design and
sample size was taken as 30 and 70 for both staff and customers respectively.
Data were collected from both primary and secondary sources and analysed
19
using percentage. The researcher adopted correlation analysis for testing
secondary data and ANOVA

20
for primary data. The result of correlation analysis using t-test revealed that
Contributory Pension Scheme (CPS) has significant impact on the GDP while
the result of ANOVA revealed that risk prevalent has positive effect to retirees.

7. Arjuna Kanakaratnam and Ya Ping Yin (June 17-19 2004) They study
on reforming the Sri Lankan Employees provident fund - Historical and
counterfactual simulation perspective the focus of this paper is on the
mandatory funded retirement income support system in Sri Lanka, which is
largely provided by the Employee Provident Fund (EPF). Paper first of all six
to reveal the deficiencies in the Sri lankan EPF system from both the micro and
macro perspective. Objective of the paper is to use the CGE model to evaluate
various options for performing the EPF through counterfactual simulation
methods. Paper examines the implication of introducing reform scenarios for
the design of the counterfactual simulations and evaluates the effects of the
reform strategies on macroeconomic performance and income replacement
ratios. Conclusion and result of paper suggested that is Sri Lanka's largest
provider of mandatory retirement savings that is the EPF has incurred excessive
financial liabilities. PPF engaging in questionable investment decisions whereby
it has served as a cheap source of public credit by investing in government
securities.

8. Simone Stelten Hertie (August 2011) " Extending Coverage of the New
Pension Scheme in India Analysis of Market Forces and policy Options".
The paper is divided into five chapters. Chapter 2 provides a theoretical and
analytical basis for the empirical analysis in three steps. First, it develops the
theoretical framework for the study of defining indicators for the analysis of
supply and demand as well as criteria for the successful implementation of
voluntary DC pension schemes in LDC, second, it summarises the development
of the public pension system in India. And third, it provides a statistical picture
of the policy problem. Chapter 3 constitutes the main part of the empirical
analysis and investigates the market forces of NPS and in how for both sides
match. The demand analysis provides a clearer picture of the relevant market
segment in terms of gender, age, occupations, residential area, education,
21
financial literacy, savings pattern, and the level of trust towards the private
sector. In order to assess the supply of the NPS, the approach will be described
in terms of its institutional architecture, enrolment processes, investment
options and marketing approaches. The chapter concludes with the answer to
the first research question on reasons for low NPS coverage. Chapter 4 answers
second research question on ways to increase NPS coverage. Finally, chapter 5
concludes with a set of concrete policy recommendations, a medium-term
outlook on the potential development of the NPS scheme and questions for
further research.

9. Dr.Robinson Onuora Ugwoke and Dr. (Mrs.) Edith ogoegbunam

Onyeanu (2013) "study on determination of the level of Acceptance and
Compliance to the New Pension Scheme in Nigeria". This paper reviews the
new pension scheme in Nigeria viz a viz the basic philosophy and objectives of
pension schemes generally. It chronicles the various efforts and the challenges
at administering an effective pension scheme in Nigeria over the years with
particular focus on the level of acceptance and compliance by all the stakeholders
in the new scheme. The main objective of this research work was an evaluation
of Pension fund administration in Nigeria, primary and secondary data were
collected and analysed using chi-square and t-test to arrive at dependable
conclusion and policy recommendation. This research work revealed that
pension scheme is something that cannot be treated with levity. For effective
and efficient Pension fund administration in Nigeria, the following policy
recommendation are,

the Nigerian government should encourage the option of having the banks
where the salary accounts of employees are domiciled to make the pension
deductions on monthly basis and have it remitted to the concerned Pension
fund administrators (PFA) i.e., employees should stop deducting the pension
contribution at source. The review of this role is necessary because, it seems
the number of defaulting firms is on the increase. The regulator (National
Pension

22
Commission) should enforce the relevant sanctions of the pension reform acts
on defaulting employers to improve on the existing compliance.

10. Jaiwardhan Vij study (February, 2005) on Lifecycle Fund: A default

Option for New Pension System. This paper is organised as follows. Section 2
provides a brief discussion of the lifecycle fund, outlines the risks while investing
in lifecycle fund and some examples. Section 3 describes the cost involved in
lifecycle funds. Section 4 analyses the lifecycle funding approach in the ambit
of NPS. Conclusion of paper is given the increasing demand of simple
investment solutions; a lifecycle fund is an appropriate investment for most of
the investors. Two kind of lifecycle funds have been discussed in this paper.
The investors who opt for target lifecycle funds typically are either the
investors who are looking for a simple solution that requires nothing of them or
relatively knowledgeable investors who lack the time or desire to monitor their
investment but want the benefit of professional management.

23
 CHAPTER 3

THEORETICAL FRAMEWORK

24
3.1 Theoretical frameworks
3.1.1 Introduction to pension and gratuity

Pension and gratuity systems are sensitive issues especially in low-income

places like vellangallur, where most employees neither have any meaningful
retirement benefits nor earn enough during their working lives to cater for their
retirement period. The lifestyle of many employees depends to a large extent on
many factors, some of which include one’s culture, his preferences, level of
resources, and the surrounding economic and social environmental factors. The
subject of retirement has been attracting increasing attention in many
organizations in Vellangallur. Many factors account for this renewed emphasis:
a) No employee is expected to work throughout his/her entire life on earth;
arrangements must be made for old age. b) The life expectancy of many
workers has increased and a majority of them are expected to work until they
retire. Even those who believe that death could come at any time have the hope
that their retirement benefits would be given to their next of kin. c) The
extended family system, which in the past helped retirees, is gradually losing
its impact to western culture and influence. d) There is increasing awareness
and emphasis that people no matter the age should learn to be independent or
self-supporting. e) The government has enacted laws encouraging employers to
pay retirement benefits and gratuities to qualified retirees.

Employees too are encouraged to contribute to pension plans, stock

options or other forms of differed compensation contracts until retirement age.
Due to the above scenario, employees and retirees are advocating and agitating
for more enlightenment and education in planning for retirement life.
Employers too are not left out as more and more qualified and productive
manpower is demanding for greater security at work and financial benefits and
pension after retiring. For employees, there is a fundamental desire to keep
updating their skills and improving their productivity in order to earn more and
be able to cater for the present and indeed the future, which is the period of
retirement from regular paid employment. The evolution of paid employment

25
precipitated the

26
concept of pension. The idea is that since workers spend the whole of their
productive lives working for their employers, they (employers) in turn should,
of necessity, make adequate plan for the up-keep of their workers after they
retire from active service. Pension, simply put, connotes a form of official
obligation in any employment relationship. It is a legal and economic
obligation in which employers of labour are mandated to fulfil in her
contractual relationship with employees. It is a form of employers’ benevolence
towards employees. Pension plans are usually established by a legal document
called a trust deed with the declaration that the funds would be administered in
accordance with the rules spelt out in the document. Employers offer pension
benefits to attract, retain and reward employees. Employees, on the other hand,
rely on retirement benefits as a form of financial security in their less
productive years.

Social security systems have become major elements of social development in

the twentieth century, with particularly important effects on the well-being of
older persons in our society. The past few years in Vellangallur have witnessed
concerted efforts by the various successive governments in the country at
improving the living standards among the older category, particularly with
similar shifts in pension reforms, its payments and the maturing of pension
plans. Social security is the range of collective social protection measures
designed to provide compensation for loss or reduction of income. It meant to
affect financial hardships suffered by workers as a result of deprivation. Its
primary objective is to ensure freedom from want by collective provision for
those who, because of misfortune, are temporarily or permanently without
sufficient resources for their subsistence. Social security is therefore, a basic
social protection provided to vulnerable members of the society against
deprivation and destitution. This project critically examines the impact of
pension and gratuity in the life of retirees with respect to Vellangallur
panchayat.

27
3.1.2 Definition of pension and gratuity

The term pension refers to a monthly instalment paid to an employee upon

retirement. It is a benefit provided by the employer that can be a government
establishment or any other organisation to the ex-employee or his dependent
relatives on a perpetual basis. Pension payments become effective for
employees who have served the same organisation for at least 10 years. The
amount of pension is decided taking into consideration the average emoluments
of an employee, which could be either the last drawn salary or the average
salary of
10 months preceding retirement, etc. Pension becomes payable upon the
retirement, superannuation, death or disablement of an employee.

Gratuity is the sum of money that an ex-employee receives as a form of

gratitude for his contribution towards the organisation. It is a form of social
security benefit provided by the employer of an establishment to the retiring
employee as a token of recognition when they retire or leave the organisation.
To be eligible for gratuity, a person must complete at least 5 years of service at
the same organisation. The 5 years of service condition is not applicable in the
case of death or disablement of the employee as a result of an accident or
disease. This is payable upon the retirement, superannuation, death or
resignation of an employee. The amount of gratuity payable is given to the
employee upon leaving the establishment but in case of death, is handed over to
the nominee of the employee. If there is no nominee, the same is given to the legal
heir in accordance of the law.

3.1.3 Features

a. Guaranteed Income: You can get a fixed and steady income after retiring
(deferred plan) or immediately after investing (immediate plan), based on how
you invest. This ensures a financially independent life after retiring. You can
use a retirement calculator to have a rough estimate of how much you might
require after retiring.

28
b. Tax-Efficiency: Some pension plans provide tax exemption specified under
Section 80C. If you wish to invest in a pension plan, then the Income Tax Act,
1961, offers significant tax respite under Chapter VI-A. Section 80C, 80CCC
and 80CCD specify them in detail. For instance, Atal Pension Yojana (APY)
and National Pension Scheme (NPS) are subject to tax deductions under
Section 80CCD.

c. Liquidity: Retirement plans are essentially a product of low liquidity.

However, some plans allow withdrawal even during the accumulation stage. This
will ensure funds to fall back on during emergencies without having to rely on
bank loans or others for financial requirements.

d. Vesting Age: This is the age when you begin to receive the monthly pension.
For instance, most pension plans keep their minimum vesting age at 45 years or
50 years. It is flexible up to the age of 70 years, though some companies allow
the vesting age to be up to 90 years.

e. Accumulation Duration: An investor can either choose to pay the premium

in periodic intervals or at once as a lump sum investment. The wealth will
simultaneously accumulate over time to build up a sizable corpus (investment
gains). For instance, if you start investing at the age of 30 and continues
investing until you turn 60, the accumulation period will be 30 years. Your
pension for the chosen period primarily comes from this corpus.

f. Payment Period: Investors often confuse this with the accumulation period.
This is the period in which you receive the pension post-retirement. For
example, if one receives a pension from the age of 60 years to 75 years, then
the payment period will be 15 years. Most plans keep this separate from
accumulation period, though some plans allow partial/full withdrawals during
accumulation periods too.

g. Surrender value: Surrendering one’s pension plan before maturity is not a

smart move even after paying the required minimum premium. This results in

29
the investor losing every benefit of the plan, including the assured sum and life
insurance cover.

3.1.4 Importance

Retirement researchers have long acknowledged the importance of Social

Security benefits, defined benefit (DB) pension income, and supplemental
individual savings—in providing Indians the greatest opportunity to achieve
financial security in retirement. Each leg of this stool fills a specific, unique
purpose. Social Security provides a guaranteed, cost-of-living adjusted income
for life in retirement, and has proven to be an effective way to keep older
Indians out of poverty. It is the foundation of retirement security for millions of
Indians and their families. Yet Social Security was never meant to be the sole
source of retirement income for Indian workers. And, in fact, as many as 30%
of state and local government employees do not participate in Social Security at
all. The second component—group pension plans—is also extremely important
in providing a reliable, steady source of income in retirement. And for those
retirees without Social Security, a pension may represent their only source of
guaranteed, inflation-adjusted monthly income, making their pension all the
more important. The final leg of the retirement stool consists of individual
savings. You might save for retirement at work in a defined contribution (DC)
plan-a 401(k), 403(b), or 457 plan, for example. You might also save in an
individual retirement account (IRA), or have other savings. Having individual
savings on top of your pension and Social Security is a helpful way to ensure
financial security, especially if you experience hardships that may be hard to
predict, for example, long-term care costs for yourself or a loved one.

30
3.1.5 Advantages

1 Opportunity to diversify across asset classes – most pension funds give

investors an option to choose the asset class to which they would like
maximum exposure. As an investor you can choose amongst pure debt, pure
equity or a mix of debt and equity.

2 Benefits of long-term investing - since these schemes invest for the long-
term, your investments can reap the benefits of long-term investing. Pension
plans ensure that a good corpus is accumulated by the time you retire and
create an annuity which can provide a steady flow of cash post your retirement.

3 Multiple options for payment – pension schemes usually offer investors a

great deal of flexibility in terms of how they want to make the payments.
Investors can choose to invest a lump sum amount and receive immediate
annuity payments or they can choose a deferred annuity plan which will let
their corpus earn more interest until the pay-outs begin.

4 Can provide the benefits of a life-insurance cover – certain pension plans

offer a life cover as well in which a lump sum amount is paid to the family
member/nominee at the death of the insured.

5 Access to a lump sum amount during an emergency – investors are

allowed to make certain adjustments to their pension policy and access funds in
case of an emergency. These emergencies are pre-defined.

3.1.6 Disadvantages

1 Limited tax deduction – while investments in a pension plan are available as

a tax deduction under section 80C of the Income Tax Act, 1961, the maximum
allowable deduction is Rs 1,50,000.

2 Taxation on the annuity – annuity received post retirement, is taxable in the

hands of the receiver.

31
3 Best suited for early investors – in order to reap the full benefits of a
pension scheme, it is imperative that the investor starts contributing to the
scheme as early as possible.

32
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

33
4 Introduction
Impact of pension and gratuity in the life of retirees has been made use of both
primary and secondary data. The primary data was collected from 50 people
using questionnaire, the samples being selected on the basis of convenience
was classified and analysis details of the collected data.

Analysis and interpretation

Table 4.1 Showing Gender wise classification

Gender No: of respondents Percentage

Male 25 50%

Female 25 50%

Total 50 100%

Source : primary data

From the above table 50% respondents are smale and 50% are female.

Figure 4.1 showing gender wise classification

no: of respondents

Female Male
50% 50%

MaleFemale

Table 4.2 Showing retirement age wise classification

34
 Age No: of respondents Percentage

55-59 18 36%

65-69 24 48%

70 or older 8 16%

Total 50 100%

Source : primary data

From the above table 36% belongs to the age group of 55-59, 48%
belongs to the age group of 65-69 and 16% belong to the age group of 70 or
more. Hence, it can be interpreted that most of the respondents belongs to the
age group of 65-69.

Figure 4.2 showing age wise classification

no: of respondents

55-5965-6970 or older

35
Table 4.3 showing work experience of the respondents

No: of years No: of respondents Percentage

0-5 3 6%

6-10 10 20%

11-20 16 32%

21-30 16 32%

30 or more 5 10%

Total 50 100%

Source : primary data

From the above table, it is understood that most of them has worked
between 11-20 years and only a few has worked more than 30 years.

Figure 4.3 showing work experience of the respondents

No: of respondents

0-5 yrs6-10 yrs11-20 yrs21-30 yrs30 or more yrs

Table 4.4 showing the annual income of the respondents during their
working period

36
 Annual income No: of respondents Percentage

3-6 lakhs 18 36%

7-12 lakhs 22 44%

12-20 lakhs 6 12%

Above 20 lakhs 4 8%

Total 50 100%

Source : primary data

From the above table, it is understood that 47% of the respondents have
the annual income between 12-20 lakhs and least of them have annual income
above 20 lakhs.

Figure 4.4 showing the annual income of the respondents during their
working period

No: of respondents

3-6 lakhs7-12 lakhs12-20 lakhsAbove 20 lakhs

Table 4.5 showing the percentage of the current salary contributed to

pension and gratuity plans.

37
 Percentage No: of respondents Percentage

0% 0 0%

1% to 5% 5 10%

6% to 10% 25 50%

11% to 15% 15 30%

16% or more 5 10%

Total 50 100%

Source : primary data

From the above table, it is understood that 50% of the respondents

contribute 6% to 10% of their salary towards pension and gratuity plans.

Figure 4.5 showing the percentage of the current salary contributed to

pension and gratuity plans.

0%1% to 5%6% to 10%11% to 15%16% or more

Table 4.6 showing the respondents who have well information about their
pension and gratuity plan.
38
39
 No: of respondents Percentage

Very well informed 17 34%

Somewhat informed 24 48%

Not too informed 8 16%

Not at all informed 1 2%

Total 50 100%

Source : primary data

From the above table, it is understood that most of them had (48%) only
a fair idea about their pension and gratuity plan and 34% has a clear idea about
the plan and only negligible percentage contribute (2%) to the people who has
no idea about the plan at all and 16% has a little knowledge about the plan.

Figure 4.6 showing the respondents who have well information about their
pension and gratuity plan.

No: of respondents

Very well informed Somewhat informed Not too informed Not at all informed

Table 4.7 showing the respondents satisfaction with the overall pension
and gratuity plan offered by the current employer

40
 No: of respondents Percentage

Very satisfied 15 30%

Somewhat satisfied 27 54%

Not too satisfied 7 14%

Not at all satisfied 1 2%

Total 50 100%

Source : primary data

From the above table, it is understood that most of the respondents are
only somewhat satisfied (54%) with their pension and gratuity plan and least
are not at all satisfied (1%) with the plan and which is negotiable. 30% are very
satisfied with the plan and only 7% is not too satisfied.

Figure 4.7 showing the respondents satisfaction with the overall pension
and gratuity plan offered by the current employer

No: of respondents

Very satisfied Somewhat satisfied Not too satisfied Not at all satisfied

Table 4.8 showing respondents knowledge on the approximate amount the

employer contributes to pay for the pension and gratuity plan.

41
 No: of respondents Percentage

Yes 29 58%

No 21 42%

Total 50 100%

Source : primary data

From the above table we can interpret that majority of the respondents
(58%) know about the approximate amount the employer contributes towards
their pension and gratuity plan and 48% has no idea about the amount that
employer contributes to the pension plan. It is not a negotiable percentage and
should have a well consideration about this.

Figure 4.8 showing respondents knowledge on the approximate amount

the employer contributes to pay for the pension and gratuity plan.

No: of respondents

yesno

Table 4.9 showing whether the plan allows the respondents to choose how
their money is invested.

42
 No: of respondents Percentage

Yes 31 62%

No 19 38%

50 100%

Source : primary data

From the above table, it is understood that the plan allows 62% of the
respondents to choose a way to invest their money and for the rest the plan not
allow them to choose the way to invest the money.

Figure 4.9 showing whether the plan allows the respondents to choose how
their money is invested.

No: of respondents

yesno

Table 4.10 showing how considered are the respondents about the security
of the money in their pension and gratuity plan.

No: of respondents Percentage

43
 Very considered 17 34%

Somewhat considered 16 32%

Not too considered 12 24%

Not at all considered 5 10%

Total 50 100%

Source : primary data

From the above table, it is understood that most of the respondents are
considered (34%) and somewhat considered (32%) with their pension and
gratuity plan and few are not at all considered (10%) with the plan and which is
negotiable. 24% of them are not too considered about the plan.

Figure 4.10 showing how considered are the respondents about the
security of the money in their pension and gratuity plan

No: of respondents

Very considered Somewhat considered Not too considered Not at all considered

Table 4.11 showing whether they know how much will they get from that
plan after leaving the employer.

No: of respondents Percentage

44
 Yes 32 64%

No 18 36%

Total 50 100%

Source : primary data

From the above table, it is understood that 64% of the respondents have
the knowledge about the payment they receive from the plan after leaving the
employer and others don’t have any knowledge about the payment they receive
from the plan after leaving the employer.

Figure 4.11 showing whether they know how much will they get from that
plan after leaving the employer

No: of respondents

YesNo

Table 4.12 showing how early the respondent will get their money from
pensions and gratuity if he/she left the employer tomorrow

No: of respondents Percentage

45
 Immediately 24 48%

At retirement age 19 38%

Don’t know 7 14%

Total 50 100%

Source : primary data

From the above table, it is understood that 48% of the respondents

receives the money from pension and gratuity plan immediately after leaving
their employees and 38% thinks that they receive money at their retirement age
and the rest, don’t even know about it.

Figure 4.12 showing how early the respondent will get their money from
pensions and gratuity if he/she left the employer tomorrow

No: of respondents

ImmediatelyAt retirement ageDon’t know

Table 4.13 showing the benefit of current pension and gratuity plan based
on some criteria

46
 Excellent Good Fair Poor Don’t Total
know

a) effectiveness 16 24 8 2 0 50
in helping to
ensure you
have enough
money for
retirement
b) level of 15 17 16 2 0 50
employer
encouragement
for you to save
for retirement

c) 15 21 9 4 1 50
communication
you receive
about the plan
benefits

d) information 17 19 9 3 2 50
you receive on
retirement
planning

Source : primary data

From the above table, it is understood that in most respondent’s case (24%) the
plan has good effectiveness in helping to ensure them to have enough money
for retirement. 15 and 17% respondents have excellent and good level of
employer encouragement to save for retirement. Majority of the respondents
(21%) receives a good communication about the plan benefits and only 1% do
not receive any communication. 19% retirees receives good information on

47
48
retirement planning and 15% receives excellent information and only 2% has
no idea about retirement planning.

Figure 4.13 showing the benefit of current pension and gratuity plan based
on some criteria

No: of respondents
30

25

20

15

10

0
a b c d

excellentgoodfairpoordon’t know

a: effectiveness in helping to ensure you have enough money for retirement; b:

level of employer encouragement for you to save for retirement; c:
communication you receive about the plan benefits; d: information you receive
on retirement planning

Table 4.14 showing what payout option respondent choose from their
retirement plans and how important is each of the following consideration

Very Somewhat Not too Not at Don’t Total

all know

49
a) Being 25 20 5 0 0 50
able to
leave
money to
your heirs
from your
retirement
savings

b)Receiving 25 15 8 0 2 50
a
guaranteed
amount
monthly
during
retirement,
no matter
how long
you live

c) 28 13 8 1 0 50
Receiving
guaranteed
monthly
payments
for the rest
of your life
and their
regular
payments to
your spouse
for the rest

50
of his or her
life, if he or
she outlives
you

d) Having 21 20 8 1 0 50
money that
you can
access on
short notice
for
emergency
purposes

e) The 21 19 8 2 0 50
ability of
the income
provided to
keep up
with
inflation

f)Being 23 17 4 5 1 50
able to
protect
yourself
against
investment
market
downturns

g) Ensuring 23 16 8 1 2 50
you do not

51
 outlive your
money
during
retirement

h) Being 21 19 8 1 1 50
able to
maintain
control of
your
retirement
savings

Source : primary data

From the above table, it is understood what payout option the retirees
choose the most from their retirement plans and how important is each of the
following consideration. 25% is very considered about being able to leave money
to heirs from their retirement savings and only 1% has no idea about it.
Majority of retirees (25%) are very concerned about receiving a guaranteed
amount monthly during retirement no matter how long they live and 15% are
somewhat considered about this and 2% has no idea about this. 28% retirees
are very concerned about receiving guaranteed monthly payments for the rest
of their life and their regular payments to their spouse for the rest of their life, if
they outlives the retirees. 21% are very concerned and 20% are somewhat
concerned about having money that they can access on short notice for
emergency purposes. 21% and 19% are very well and somewhat considered
about the ability of the income provided to keep up with inflation, respectively.
Most of the retirees (23%) are very concerned about being able to protect
themself against investment market downturns. 23% retirees are very
considered about ensuring they do not outlive their money during retirement.
21% and 19% of the respondents are very considered and somewhat concerned
about being able to maintain control on their retirement plan, respectively.

52
Figure 4.14 showing what payout option respondent choose from their
retirement plans and how important is each of the following consideration.

No: of respondents
30

25

20

15

10

0
a b c d e f g h

VerySomewhatNot tooNot at allDon’t know

53
 CHAPTER 5

FINDINGS, SUGGESTIONS AND

CONCLUSION

54
5.1 FINDINGS

 From the above study containing both men and women it is understood
that majority of them has retired at the age of 65-69.

 Most of them have worked between 11-30 years and only a few has
worked more than 30 years.

 Major retirees had an annual income between 7 - 12 lakhs and only a

few had income more than 20 lakh.

 Half of the respondents contribute 6% to 10% of their salary towards

pension and gratuity plans.

 Most of them had only a fair idea about their pension and only
negligible percentage contributes to the people who have no idea about
the plan at all.

 Most of the respondents are only somewhat satisfied with their pension
and gratuity plan.

 Majority of the respondents know about the approximate amount the

employer contributes towards their pension and gratuity plan and most
has no idea about the amount that employer contributes to the pension
plan which is very critical.

 The plan allows most of the respondents to choose a way to invest their
money.

 Most of the respondents are considered and few are not at all considered
with their pension and gratuity plan.

 The respondents have the knowledge about the payment they receive
from the plan after leaving the employer.

 It is understood that most of the respondents receives the money from

pension and gratuity plan immediately after leaving their employees.

55
 In most respondent’s case the plan has good effectiveness in helping to
ensure them to have enough money for retirement. The respondents have
excellent and good level of employer encouragement to save for
retirement. Majority of the respondents receives a good communication
about the plan benefits and only few do not receive any communication.
Some retirees receive good and some receives excellent information on
retirement planning.

 Got information about what payout option the retirees choose the most
from their retirement plans and how important is each of the following
consideration. Most of them are very considered about being able to
leave money to heirs from their retirement savings. Majority of retirees
are very concerned about receiving a guaranteed amount monthly during
retirement no matter how long they live. Majority of the respondents are
very concerned about receiving guaranteed monthly payments for the
rest of their life and their regular payments to their spouse for the rest of
their life, if they outlives the retirees. Most of the retirees are concerned
about having money that they can access on short notice for emergency
purposes and also considered about the ability of the income provided to
keep up with inflation. Majority of the retirees are very concerned about
being able to protect themself against investment market downturns,
about ensuring they do not outlive their money during retirement and
about being able to maintain control on their retirement plan,
respectively.

56
4.2 SUGGESTIONS

 There should be a decent salary hike for an employer after 5 years of

work.

 Every employer should contribute at least 12% to employees’ pension and

gratuity plan.

 The employers should give a clear idea to the employees about the
pension and gratuity plan and should explain clearly how the
calculations are done.

 Employer should clearly mention their contribution towards pension

and gratuity plan.

 The plan should allow all employers to choose how their money is
invested.

 The employer should give a clear idea about the amount the employee
gets after leaving the employer.

 The retirees should have immediate access to their money during

emergency.

 The employer should explain clearly about the plan benefits to every
employee.

 Every employee should get a guaranteed amount every month after

retirement and the same benefit to their spouse if they outlive the
employee.

 Every employee should get protection from the plan against investment
market downturns.

57
5.3 CONCLUSION

From the above study it is clear that the pension and gratuity plan has a lot of
benefits in retiree’s life. All employees should clearly mention about the
pension and gratuity plan to the employees. They should explain how it is
calculated and about their part of contribution towards the plan. Most of the
plan allows the employer to choose how the money is invested which is a great
benefit for the employer. The plan gives the employee and his family a security
in life after employee’s retirement. The plan allows them to get a guaranteed
amount every month after their retirement which gives them a financial
security. It also provide financial security during investment market downturns.
The plan provides protection to the employee as well as to his/her family if the
spouse outlives them. The plan allows to maintain a control of their retirement
savings. The plan allows them to have money which is accessible on short
notice for emergency purposes. From the above study it can be concluded that
pension and gratuity plan is a great boon after retirement. It provides financial
security to oneself and to the family also.

58
BIBLIOGRAPHY

59
Reference

1. https://en.wikipedia.org/wiki/Pension
2. https://en.wikipedia.org/wiki/Gratuity
3. Ayanendu Sanyal, Charan Singh (August 2013) “Universal pension
scheme in India”
4. Patricia Justino (September 2003) “Social security in Developing
countries: Myth or Necessity? Evidence from India.”
5. Ajay Shah (June 21, 2005) "Indian pension reforms: A sustainable and
scalable approach"
6. Sukhen Kali (November 2012) "Empirical Study on Retirement benefits
of Government Employees and Private Sector Employees (covered by
EPF and MP act) in India" Volume : 1 | Issue : 5 | ISSN No 2277 – 8160
7. Swarn Chatterjee (August 2010) "Retirement savings of Private and
Public Sector Employees: A comparative study" Journal of Applied
Business Research 26(6)
8. Edogbanya Adejoh (2013) "An Assessment of the impact of
contributory pension scheme to Nigerian economic Development"
Global Journal of Management and Business Research Volume 13 Issue
2 Version 1.0
9. Arjuna Kanakaratnam and Ya Ping Yin (June 17-19 2004) “Reforming
the Sri Lankan Employees Provident Fund - A Historical and
Counterfactual Simulation Perspective
10. Simone Stelten Hertie (August 2011) “Extending Coverage of the New
Pension Scheme in India Analysis of Market Forces and policy Options”
11. Dr. Robinson Onuora Ugwoke and Dr. (Mrs.) Edith Ogoegbunam
Onyeanu (2013) “Study on determination of the level of Acceptance and
Compliance to the New Pension Scheme in Nigeria” Research Journal
of Finance and Accounting
12. Jaiwardhan Vij (February, 2005) “Lifecycle Fund: A default Option for
New Pension System”

60
APPENDIX

61
 Questionnaire

Impact of pension and gratuity in the life of retirees

1. Name

2. Gender

a) Male b) Female c) Others

3. At what age you expect to retire

a) 55-59 b) 65-69 c) 70 or older

4. For approximately how many years have you been working for your current
employer?

a) 0-5 years b) 6-10 years c) 11-20 years d) 21-30 years

e) 31 or more years

5. What was your annual income during working period?

a) 3-6 lakhs b) 7- 12 lakhs c) 12- 20 lakhs

d) Above 20 lakhs

6. What percentage of your current salary do you contribute to pension and

gratuity plans

a) 0% b) 1% to 5% c) 6% to 10% d) 11% to 15%

e) 16% or more

7. How well informed are you about the details of the pension and gratuity plan

a) Very well informed b) Somewhat informed c) Not too informed

d) Not at all informed

62
8. How satisfied are you overall with the pension and gratuity plan offered by
your current employer

a) Very satisfied b) Somewhat satisfied c) Not too satisfied

d) Not at all satisfied

9. Do you know approximately how much your employer contributes to this

plan to pay for your pension and gratuity plan?

a) Yes b) No

10. Does this plan allow you to choose how your money is invested?

a) Yes b) No

11. Overall, how considered are you about the security of the money in your
pension and gratuity plan

a) Very concerned b) Somewhat concerned c) Not too concerned

d) Not at all concerned

12 .Do you understand your retirement plan well enough to be able to estimate
how much you would get from this plan if you were to leave your employer
tomorrow

a) Yes b) No

13. If you left your employer tomorrow, how early would you be able to get the
money from this pension and gratuity plan?

a) Immediately b) At retirement age c) Don't know

14. Please rate your current employer's pension and gratuity program on each
of the following, based on the given criteria ((a) excellent b) Good c) Fair
d) Poor e) Don't know)

63
a) Effectiveness in helping to ensure you have enough money for retirement

b) Level of employer encouragement for you to save for retirement

c) Communication you receive about the plan benefits

d) Information you receive on retirement planning

a) Effectiveness in helping to ensure you have enough money for retirement

b) Level of employer encouragement for you to save for retirement

c) Communication you receive about the plan benefits

d) Information you receive on retirement planning

15. When deciding on what pay-out option to choose from your retirement
plans during retirement, how important is each of the following
considerations?
(a) Very b) Somewhat c) not too d) Not at all e) Don't know)

a) Being able to leave money to your heirs from your retirement savings

b) Receiving a guaranteed amount monthly during retirement, no matter how

long you live

c) Receiving guaranteed monthly payments for the rest of your life and their
regular payments to your spouse for the rest of his or her life, if he or she
outlives you

d) Having money that you can access on short notice for emergency purposes

e) The ability of the income provided to keep up with inflation

f) Being able to protect yourself against investment market downturns

g) Ensuring you do not outlive your money during retirement

h) Being able to maintain control of your retirement savings

a) Being able to leave money to your heirs from your retirement savings
64
b) Receiving a guaranteed amount monthly during retirement, no matter how
long you live

c) Receiving guaranteed monthly payments for the rest of your life and their
regular payments to your spouse for the rest of his or her life, if he or she
outlives you

d) Having money that you can access on short notice for emergency purposes

e) The ability of the income provided to keep up with inflation

f) Being able to protect yourself against investment market downturns

g) Ensuring you do not outlive your money during retirement

h) Being able to maintain control of your retirement savings

65