Factors affecting Retirement Investment Plans: A Review based study among Young Employees in Higher Educational Institutions ( HEIs)

Abstract

The importance of retirement planning has grown for young working professionals because of three factors which include rapid population ageing and rising inflation and changing socio- economic structures. Young workers demonstrate inadequate retirement readiness despite their higher educational accomplishments because they lack essential financial knowledge and possess negative views and incorrect beliefs about retirement investment programs. This research investigates how young employees at Higher Educational Institutions (HEIs) view retirement investment plans by conducting a comprehensive analysis of existing published studies.

The study uses secondary data as its primary research foundation while implementing systematic literature review methods for its research. Academic research articles, journals, policy reports, and working papers published between 2014 and 2025 are analyzed to identify key behavioral, psychological, and demographic factor which affect retirement investment   behavior, Retirement planning choices are influenced by attitudes and perceptions, financial literacy, and risk references. This paper employs the Life-Cycle Hypothesis, Prospect Theory, as well as Theory of Planned Behavior as its theoretical framework to establish this point.

Positive financial attitudes as well as a favourable perspective of financial issues have a significant impact on the retirement investing behavior and preparedness of young workers, according to   the analysis. As a mediator between demographic characteristics and retirement planning behavior, financial literacy repeatedly appears as a crucial enabling element. The literature also highlights a persistent intention–action gap, which especially affects young employees who work in higher education institutions and who live in Tier-III cities where educational institutions do not provide sufficient support and financial literacy programs are not available.

This research paper adds to the existing body of knowledge by bringing together disparate empirical data and providing HEIs with insights particular to their location. The study shows that young professionals need targeted financial education programs together with institutional interventions to achieve better retirement readiness.