A STUDY ON FACTORS INFLUENCING CONSUMER UNDERSTANDING ON RETIREMENT INVESTMENT FUNDS

The main part of the retirement planning is to calculate how much wealth has to be created; we need considering all the risks and needs of the future. There are many risks which occur at the post-retirement such as longevity risk, inflation risk, interest rate risk, stock market risk; unexpected health care needs need costs which should be manageable. Considering all these, the retirement planning should be made. The study aims to understand how consumers of retirement related investments choose among the various available alternatives and to know what factors are considered and traded while choosing a particular retirement fund. Primary Data was collected through Survey method through questionnaire. This study revealed the bi-dimensionality of risk perception. The two factors that seem to influence investor decision on retirement investment funds are 1. Lack of Perceived Control and 2. Lack of assuredness. This means that for customers of retirement funds control and assurance are the major reasons that contributes to the perception of risk and need of being assured of the returns and having control over their investment specific to retirement is an important attitudinal requirement.