Executive Summary: Retirement planning is an integral and the most important part of financial planning for any individual. Every individual looks for¬ward to spend¬ing the post retire¬ment years in the lap of luxury. In the recent years the requirement of financial planner is so high and the financial planners have been available to help the clients to develop retirement plans. Only 10% of the population in India goes for the retirement planning or some social security. In this paper researchers have studied towards retirement planning and the investment behavior of female faculty members towards retirement planning avenues. A person needs to take challenging investment decisions in order to optimally plan for retirement. These decisions as per finance theories have been motivated by reasoning while unfortunately the intuition aspect has been portrayed in a negative manner by behavioural finance advocates. The research is an attempt to study the investment behaviour of female faculty member towards retirement planning avenue. In this paper researchers have found that the female faculty members’ investment in various retirement planning avenues is heavily influenced by intuition thus supporting HDMM (HOLISTIC DECISION MAKING MODEL).

1. “Intuition As A factor of Investment: Choice of female faculty
Members”
*Prof. Harsh Purohit, Chair: ICICI Bank Chair for BFSI, WISDOM,
Dean, FMS – WISDOM
Banasthali University
Banasthali Vidyapith- 304022
deanwisdom@banasthali.in
** Gargi Pant, ResearchScholar, WISDOM, (Banasthali Vidyapith)
FMS – WISDOM
Banasthali University
Banasthali Vidyapith– 304022
gargipant87@gmail.com
Executive Summary:

2. Retirement planning is an integral and the most important part of financial planning for any
individual. Every individual looks forward to spending the post retirement years in the lap of
luxury. In the recent years the requirement of financial planner is so high and the financial
planners have been available to help the clients to develop retirement plans. Only 10% of the
population in India goes for the retirement planning or some social security. In this paper
researchers have studied towards retirement planning and the investment behavior of female
faculty members towards retirement planning avenues. A person needs to take challenging
investment decisions in order to optimally plan for retirement. These decisions as per finance
theories have been motivated by reasoning while unfortunately the intuition aspect has been
portrayed in a negative manner by behavioural finance advocates. The research is an attempt to
study the investment behaviour of female faculty member towards retirement planning avenue.
In this paper researchers have found that the female faculty members’ investment in various
retirement planning avenues is heavily influenced by intuition thus supporting HDMM
(HOLISTIC DECISION MAKING MODEL).
Introduction:
Retirement is not same today as it was for the previous generation. Now it’s not a onetime event
or a one way to exit from the work place, rather it is a gradual transition that takes place over
time and it’s different for anybody. One need to change the way of your plan for the retirement
planning with the changes in the retirement or as the retirement become flexible now. The factors
which one considers while you’re planning for the retirement is depend upon the age or the stage
of your life. It is always better to plan for the retirement from the early age. The need of fund
with fewer financial resources is of concern of many women. According to a research conducted
by IRI “older women are more confident they are prepared for retirement financially than
younger women.” On an average woman live longer than men they have to think or have to
concern more about their retirement planning.
There are few expenses post retirement which can’t be neglected one of the most expensive
expense is on healthcare. It is very important to include the cost of health care and to take care of
inflation rate when planning for the retirement. A lump-sum amount of personal saving for
retirement comes from employer-sponsored plans. Acc. to the research conducted by “Franklin
Templeton” the top three concerns for retirement are: market volatility (71%), outliving their
assets (67%) and healthcare expenses (58%). High market volatility and guaranty income are two

3. concerns which are interrelated. High market volatility presents serious challenges of when and
how much to withdraw from savings. The financial crisis of 2008 had a profound impact on
individuals’ attitude towards retirement income and security. Acc. to a study done by IRI and
Alliance Bernstein, the market crisis of 2008 opened many clients and advisors eyes to the
benefits of variable annuities (VAs). 50% of the advisors stated that their clients started
demanding “guaranteed investments.” The guarantee of a predictable source of income to meet
at least basic expense can help retirees manage difficult times without major adjustments to their
retirement plan. Financial planning is important to maintaining a stable financial household.
Good financial planning and achieving financial stability will also help to prevent financial crisis.
First, this fact sheet will help you create a budget in order to examine which household expenses
could be reduced, so that you can set goals to limit your spending. Next, you will learn how to
set debt reduction and savings goals. Finally, after examining your expense reduction, debt
reduction, and savings goals, you will be prepared to develop a spending plan. Creating (and
sticking to) a budget and spending plan will assist in attaining financial stability.
Overview of Retirement Planning:
Retirement schemes are mainly a financial assurance that a person will continue to earn a
reasonable income when his professional income starts to end and lead a comfortable life. The
trend of opting for retirement plans is increasingly popular in India within few years. Even
people who are retiring from government sector and have a secure pension and they are still
opting private retirement schemes for future financial security.
Retirement planning is the analysis of the various choices you can make today to help provide
for your financial future. Retirement Planning is to predict for the future income and make an
appropriate choice. For many people retirement is an anticipated event for which they waited so
long and they assume it as an opportunity to enjoy and more family time, for other people the
word retirement may be a stressful feeling particularly for those who worked without the benefit
of pension or other retirement plans. Retirement planning helps one to take control of your own
future.
To determine one’s retirement income needs. One has to evaluate present circumstances and then
to think about the future circumstances and one have to think about your future sources of
income. Most of the theories are based on the idea that investors behave rationally. They gather
all the information before taking investment decision but there are many evidences which deny

4. the theories. Many practitioners have opinioned that assets price are affected by investor
psychology and the prices of many securities in the market get affected because of the
misconception among investors. In few recent years, the financial would have seen that women
are more in the position of investment analyst & financial planner.
Every individual looks forward to spending the post retirement years with luxury. Retirement
planning is essential so that one can: 1) Prepare for unforeseen circumstances (Planning for the
events that may or may not happen) 2) Maintain a positive outlook to life 3) Plan an early
retirement (Planning for an early retirement arms one with more options to face emergencies) 4)
Beat Inflation 5) Invest in top notch medical care 6) Secure family’s future 7) Keep oneself
updated on retirement plans and benefits 8) Safeguard one’s saving
RelatedLiterature:
Dorfman, et al. (1984) found in their study that many professors across types of institutions
planned for retirement. A majority of faculty had thought seriously about retirement, made
financial plans, checked on retirement benefits. Retired faculties were generally favorable about
retirement. The author has also written that faculties of university appeared to do more planning
for retirement than did faculty from other institutions.
Johnson and Gaetino (1982) written that teachers strongly support and agree with the general
concept of early retirement incentive plans. In other words teachers are not interested in the
extension of their employment tenure. The author indicated three implications for the specific
design of early retirement plan programs. First, the early retirement option should be made
available to teachers somewhere between the ages of fifty and fifty-five. Second, to be most
attractive, ERIP should contain incentives/features that offset all or nearly all of the major
monetary costs associated with early retirement. Third, and contrary to current practice, ERIP
need not always and automatically include opportunities for early retirees to work part-time in
the school district.
Jain (2010) and Srivastava (2011) resulted in their study that many investors stressed that they
were successful in stock market investing not just because of good analysis, avoiding biases &
overconfidence but through intuition. People often involve in daily decision making, whether for
simple or complicated problems and whether they are professional or non-professional. More
and more people realize that intuition is essential to making good and right decisions,

5. particularly for those managers at all levels in an organization who sometimes are under
conditions of high uncertainty or little precedent (Agor, 1984; David, 2009). In general, people
apply intuition in numerous areas such as medical and nursing, education, business,
management, research and development, personal selection, marketing and others. Normally,
most of the people use intuition for making decisions in situations of great uncertainty or lack of
information (Judge and Robbins, 2006; David, 2009).
Sinclair and Ashkanasy (2005) found that intuitive decision is very useful in ambiguous
situations, particularly for those decision makers in business world who have restricted
information and they must decide which alternative strategies will benefit the companies most.
Intuition is considered as a part and parcel of decision making process.
Renowned professor in Indian Management, Dr. Subhash Sharma (2007) has presented
innovative framework of decision making by explaining decision styles and decision circles.
Sharma (1996) also presented the widely popular model of decision analysis, namely MBA
(Manas, Buddhi, Ahamkar) model of decision style. He advocated major characteristics of
‘Manas’ driven typology are intuitive, holistic, and right brain orientation, while the major
characteristics of ‘Buddhi’ driven typology pertain to rational, analytical, objective and left brain
orientation and ‘Ahamkar’ driven typology presents irrational characteristic of a person.
Obviously investor is also driven by these aspects. Sharma has stressed need to develop an
inventory to measure decision style on this innovative framework.
Purohit (2012) in a research on 30 successful affluent investors in Rajasthan and Madhya
Pradesh has observed that investors have consistently gained from seriously considering
symbolic representation guidance, psychic experience, randomly making the likely chart for
movement of a stock for intraday trading, sensing right time to buy/sell, sixth sense guidance on
what FII would be doing next and whether the market news can be relied upon? Thus the need of
the hour is to consider an alternate to the behavioural finance, in order to comprehensively
understand action by investors with another approach, HOLISTIC DECISION MAKING
MODEL (HDMM). Contrary to Thaler (2005) these investors do not display a systematic
planning fallacy; against Regret theory the investors have rarely avoided selling stocks that have
decreased in value to avoid the regret of having made a bad investment or embarrassment of
reporting a loss. On the other side these investors did not exhibit herd behavior either. It is

6. therefore necessary to explore if a meaningful relationship exists between information obtained
by investors and intuitive decision making style, chaos in stock market and intuitive decision
making style, market volatility and intuitive decision making style. More empirical work on
HDMM can bring new insights in time to come (Purohit, Srivastava, 2011).
Binswanger & Carman (2010) have investigated people’s intuition about the benefits of long
term saving. The motivation for this is that many people are likely to rely on their intuition when
it comes to estimating the benefits of long term savings. They found that individuals are far more
pessimistic about the long term benefits of saving when they adopt the forward perspective,
compared to backward perspective. The bias amount to about 3.5% points per year. In their
experiment, they asked individuals to think about the tradeoff between consumption today &
consumption tomorrow. They have pointed out that many people are likely to rely, in one way or
the other on their intuition or gut feeling.
Objective of the study:
To evaluate if female faculty members take investment decision guided by HDMM or only
factors explained by reasoning/logic.
Research Methodology:
“Research is performing a methodical study in order to prove a hypothesis or answer a
specific question.” (Martyn Shuttleworth, 2008). Research is any original and systematic
investigation undertaken in order to increase knowledge and understanding and to establish facts
and principles. It comprises of creation of ideas and generation of knowledge that lead to new
and substantial improved insights.
Data Collected:
 Data Type: The data was collected from the Primary sources. Primary research is an
essential part of any paper and was implemented in the initial stages to understand the
outline and build a framework for the later analysis. The collection of Primary data
involved the pro-active seeking of data, and which was useful in the analysis and
planning of the research project.

7.  Data Source: The data is collected from various sources. The data is taken from the
female faculty members of the premier Universities like: Banasthali University, Mohanlal
Sukhadia University, and BITS Pilani personally/via Google docs.
 Sample size: 600 Female Faculty Members
 classification of sample:
 Age: Up to 30, 30-45, 45-55 years
 Income Level: Up to Rs. 3 lakhs, 3-6 lakhs, 6 lakhs & above
 Types of Family: Nuclear, Joint
 No. of Dependents: Up to 2, 3-4, 5 & above
 Marital Status: Unmarried, Married, Divorced
 Work Experience: Up to 4 years, Up to 10 years, 10 years & above.
Data Analysis &Tools:
The study will use a variety of questions to find out the complete information about the topic
under research. Apart from dichotomous and multiple-choice questions, the questionnaire will
include statements, which the respondents shall be required to, rate on the basis of likert scale.
The present study is an attempt to study the awareness of female faculty member towards
retirement Planning. The data was collected from various Universities like Banasthali
University, Sukhadia University and BITS Pilani. With the help of Statistical Software
for Social Sciences (SPSS) and EXCEL the data was analyzed and results were drawn
after using various statistical tools. SPSS Statistics is a software package used for
statistical analysis. In addition to statistical analysis, data management (case selection,
file reshaping, creating derived data) and data documentation (a metadata dictionary is
stored in the data file) are features of the base software
Propositions:
𝑯 𝟎1: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM on the basis of marital Status.

8. 𝑯 𝟎2: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM on the basis of income.
𝑯 𝟎3: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM on the basis of designation.
𝑯 𝟎4: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM across the age.
Empirical Resultand Discussion:
Interpreting the Tests
A p-value (the probability of being wrong if accepted the alternate hypothesis) can be computed
in EXCEL or SPSS as follows:
= CHIDIST (statistic, dof)
= CHIDIST (11.56, 1)
Excel will return the P – Value, in this case 0.00067, since the probability of being wrong is less
than 0.05 we accept the alternate hypothesis
𝑯 𝟎1: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM on the basis of marital Status.
Marital Status
S.No Retirement avenues Chi Sq Value Inference
1 Real Estate
Chi sq = 37.850, DF = 16, p-
value = 0.002 𝐻0 Rejected
2 Mutual Funds
Chi sq = 29.733, DF = 16, p-
value = 0.019 𝐻0 Rejected
3 Stock
Chi sq = 31.245, DF = 16, p-
value = 0.013 𝐻0 Rejected
Inference: There is a significant difference in the investment preference of the faculty members
for the investment avenues and they are investing on the basis of intuition. We can say that

9. married and separated faculty members are more who invest on the basis of intuition. Female
faculty member’s investment preference towards investment avenues on the basis of intuition is
significantly affected by marital status.
𝑯 𝟎2: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM on the basis of income.
Income
S.No Retirement avenues Chi Sq Value Inference
1 Real Estate
Chi sq = 27.775, DF = 16, p-
value = 0.034 𝐻0 Rejected
2 Mutual Funds
Chi sq = 27.935, DF = 16, p-
value = 0.032 𝐻0 Rejected
3 Stock
Chi sq = 41.820, DF = 16, p-
value = 0.000 𝐻0 Rejected
Inference: There is a significant difference in the investment preference of the faculty members
for the investment avenues and they are investing on the basis of intuition. We can say that
faculty members who are earning above 600001 & 300000 - 600000 are more likely to invest on
the basis of intuition. That is hypothesis 2 (𝐻0 2) is rejected that means female faculty members
investment preference towards investment avenues on the basis of intuition is significantly
affected by income. Intuition is a factor which affects the investment decision of the faculty
member’s.
𝑯 𝟎3: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM on the basis of designation.
Designation
S.No Retirement avenues Chi Sq Value Inference
1 Real Estate
Chi sq = 27.468, DF = 16, p-
value = 0.037 𝐻0 Rejected

10. 2 Mutual Funds
Chi sq = 34.792, DF = 16, p-
value = 0.004 𝐻0 Rejected
3 Stock
Chi sq = 33.692, DF = 16, p-
value = 0.006 𝐻0 Rejected
Inference: There is a significant difference in the investment preference of the faculty members
for the investment avenues and they are investing on the basis of intuition. We can say that
faculty members who are Professors and Associate professors are more likely to invest on the
basis of intuition while Assistant . That is hypothesis 3 (𝐻0 3) is rejected that means female
faculty members investment preference towards investment avenues on the basis of intuition is
significantly affected by designation.
𝑯 𝟎4: Female faculty members’ investment preference for investment avenues is not significantly
affected by HDMM across the age.
Age
S.No Retirement avenues Chi Sq Value Inference
1 Real Estate
Chi sq = 34.731, DF = 16, p-
value = 0.004 𝐻0 Rejected
2 Mutual Funds
Chi sq = 21.696, DF = 12, p-
value = 0.041 𝐻0 Rejected
3 Stock
Chi sq = 30.256, DF = 16, p-
value = 0.017 𝐻0 Rejected
Inference: There is a significant difference in the investment preference of the faculty members
for the investment avenues and they are investing on the basis of intuition. We can say that
faculty members between the age group 51 – 60 & 41 - 50 are more likely to invest on the basis
of intuition. That is hypothesis 4 (𝐻0 4) is rejected that means female faculty members
investment preference towards investment avenues on the basis of intuition is significantly
affected by age.

11. Limitation of Study:
 The current research only cover female faculty members’ attitude towards retirement
scheme.
 Study area of this research confined to Rajasthan state only and may not give similar
result when generalized to other regions.
 Investors included here is only faculty members of institutes other professional females
are not included in the research.
Conclusion:
Retirement planning is an integral part of financial planning for any individual. Every individual
looks forward to spending the post retirement years in the lap of luxury. A person needs to take
challenging investment decisions in order to optimally plan for retirement. Female faculty
members’ investment preference for investment avenues is significantly affected by HDMM on
the basis of marital Status, age, designation and Income. The female faculty members are
investing and making profit on the basis of their intuition. With an increase of life expectancy
ratio, increase in dependency ratio and decline in joint family structure make retirement planning
more important. Market Volatility, outliving their assets and health care expenses for which
female faculty members are very much concern while investing for their retirement income.

12. Bibliography:
1. Binswanger, J., Carman, G. K., (2010) “The Miracle of Compound Interest: Does our
intuition fail?” NBER Working Paper.
2. Dorfman, T. Lorraine., Conner, A. Karen., Ward, William., Tompkins, B. Jean., (1984)
‘Reaction of Professors to Retirement: A Comparison of retired faculty from the three
types of institutions’, Vol. 20, no. 1, pp 89-102.
3. Johnson, P. Gary., Gaetino, Q. Joseph., (1982) ‘Teacher Attitudes Toward Early
Retirement Incentive Plans’, Journal of Education Finance, Vol. 7, no. 3, pp. 243-261.
4. Kenyon, Borden(2004)Family Financial Management — Planning for the Future
Promoting the Health and Well-Being of Families During Difficult Times, THE
UNIVERSITY OF ARIZONA Journal, 2004
5. Purohit, Srivastava (2011), Decision style of investors: evidences from literature review
and exploring holistic decision making model as an alternate to behavioural finance,
working paper.
6. Purohit Harsh (2002), ‘Recent trends in Investor’s attitude with special reference to
Indore and Jaipur Cities’, Doctoral thesis, Barkatullah University, Bhopal
7. Purohit Harsh (2011), What clicks HNI Investment ?, Research Paper in Finance,
Banasthali Vidyapith - ICICI Bank Chair for BFSI Research
8. Sadagopan, Suresh (2010) Setting up a Financial Planning Practice – Notes from a
practitioner, Financial Planning Journal, August, 2010
9. Srivastava, Anshul (2010), Para Planning Concepts and Indian Perspective, Financial
Planning Journal, November, 2010.
10. “Women and Retirement Overcoming retirement incomes challenges facing women”,
Report by Insured Retirement Institution July 2012.
11. Your’ Money & Finder Newsletter Summer 2007, Vol. 4 Issue. 3.
12. Jill Hussey & Roger Hussey (1997) Business Research: "A Practical Guide for
Undergraduate and Post graduate students", London: Macmillan
13. Busha, Charles H., and Stephen P. Harter. (1980) "Research Methods in Librarianship:
Techniques and Interpretation" Orlando, FL: Academic Press, Inc.

13. Website:
1. http://secure.financial-planning.com/ (accessed on 25.05.2013)
2. http://www.financial-planning.com/EliteAdvisorForum/ (accessed on 25.05.2013)
3. http://ing.us/individuals/my-financial-life/managing-my-paycheck/retirement-planning-
women accessed on (27.05.2013)
4. http://www.gobookee.com/search.php?q=Financial+planning&more=1 (accessed on
28.05.2013)
5. http://www.raymondjames.com/intro to retirement planning/ (accessed on 28.05.2013)