To Assess the Impact of Financial Literacy on Retirement Planning Among Different Age Groups

ABSTRACT: In the contemporary economic environment, the importance of personal financial planning has grown significantly, especially in the context of retirement. With increasing life expectancy, rising healthcare costs, and the gradual shift from employer-sponsored pension schemes to individual retirement accounts, individuals are now more responsible than ever for securing their financial future. Against this backdrop, this field project seeks to examine the impact of financial literacy on retirement planning, emphasizing the extent to which individuals' knowledge, attitudes, and behaviours regarding financial matters affect their preparedness for life after retirement. The primary objective of the study is to explore the correlation between the level of financial literacy and the effectiveness of retirement planning among different demographic groups. Data were collected through a structured survey questionnaire administered to a diverse sample of working individuals. The questionnaire included a mix of demographic questions and Likert-scale items measuring key dimensions such as awareness of retirement products, understanding of budgeting and saving, investment knowledge, long-term financial goal setting, and risk perception. Statistical tools, including descriptive statistics and Pearson correlation analysis, were applied to interpret the data and draw meaningful conclusions. The findings reveal a positive and statistically significant relationship between financial literacy and various aspects of retirement planning. Participants with a higher level of financial literacy were more likely to engage in consistent saving behaviour, diversify their investment portfolios, and set concrete retirement goals. In contrast, individuals with limited financial knowledge exhibited lower confidence in managing their finances and showed a lack of preparedness for retirement. The study also identifies critical gaps in financial education, particularly among younger participants and those from lower-income groups. Keywords Financial literacy, Retirement planning, Personal financial planning, financial behaviour, Investment knowledge, financial education, Savings behaviour, Risk perception, Long-term financial goals, Pension systems, Demographic factors, Retirement preparedness, Economic environment, financial knowledge gaps, Survey research, Correlation analysis, financial attitudes, Budgeting skills, Income levels, Age and retirement planning