DETERMINANTS OF FINANCIAL PLANNING FOR RETIREMENT IN INDIA: A COMPREHENSIVE REVIEW

Abstract

This review article synthesizes global and Indian literature on the determinants of financial planning for retirement, highlighting the urgent need for individual preparedness amid India’s rapidly aging population and limited formal pension coverage. Drawing on interdisciplinary perspectives—economics, psychology, sociology, and behavioural finance—it explores how retirement planning is shaped by personal traits (e.g., financial literacy, future orientation), social norms (e.g., family expectations, gender roles), and institutional factors (e.g., access to pension schemes, trust in financial systems). The article adopts and adapts the Capacity–Willingness–Opportunity (CWO) framework to the Indian context, emphasizing that effective retirement planning requires not just knowledge and motivation but also enabling environments. It identifies significant gaps in Indian scholarship, including limited longitudinal data, underexplored vulnerable populations, and insufficient evaluation of policy interventions. The review concludes by advocating for culturally tailored financial education, inclusive product design, and systemic reforms to foster retirement readiness across diverse segments of Indian society. By bridging theoretical insights with empirical evidence, the article offers a roadmap for future research and policy aimed at ensuring financial dignity in old age.