This around the world, individuals have little or

This research paperdiscussed retirement planning among young professionals in Bangladesh andfactors that can be an encouragement for them to plan for the retirement.

Planning for retirement is very essential for an individual because it securesthe human needs financially during retirement period. Although planning forretirement is an option of personal choice. It requires a conscious decision onthe individual to allocate or put aside income to allow for financial securityupon retirement. Previous literature on retirement planning has shown thatacross countries around the world, individuals have little or no planning fortheir retirement. Retirement savings orcreating retirement corpus is not a short term process, but a time consuminglong term process. It takes years or even the whole life to gather the expectedretirement goals.

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As early as the individual starts saving their money will bemore rotated and will earn more return as the money will be compounded morenumber of times for the retiree. Age of an employee willdetermine the number of years left to get retired formally by laws. This willhelp in judging the number as well as the amount of monthly salary to be drawnby the employee from which they can save for retirement. Wise should startsaving as early as possible. A variety of demographic factors come into playwhen accounting for a family’s assets, savings, and employer-sponsoredretirement plan participation like Education Levels, Income Levels, Gender,Age, Employment Status and Firm Size. Financialplanning has always been one of the high priority issues for both private andpublic policy makers. Among efforts taken were marketing strategies directed atcultivating savings habits and planning for post-working life.

In line to this,financial service and consulting firms have made advertisements through printedand electronic media to capture the public attention towards the importance ofplanning for better financial security in the old age. Awareness in retirementis still a vague issue among society in Bangladesh.  There are a lotof retirement products being introduced by financial institutions and yet theinitiatives to save for retirement are step sided by many. Since most thinkthat companies and government retirement plan should be enough to cover forgolden years expenses.

Nevertheless, many studies have shown that money savedin companies and government pension plan may not be adequate for futureconsumption. Therefore, this paper, subjectively, aimed at discussion on retirementissues scenario in Bangladesh, attitudes towards investment, savings behavior towardsretirement among the populace and current issues in Bangladesh. As a result, atheoretical framework is developed to illustrate the relationship between demographic,financial education programs, social influences, and personal retirementsavings behavior. In Bangladesh,those working in the public sectors mostly opt for Government pension plan andsome may opt for Employees Provident Fund (EPF) plan. Majority of the workerswho chose the Government pension plan has no worries on post retirementexpenses as Government pensioners will receive monthly pension which is half oftheir last drawn salary. On the other hand, those in the private sectors aremandated to save in the Employee Provident Fund.

 RetirementSavings is one issue of growing concern everywhere. Retirement may seem to befar away in the future but it needs planning now to make sure that retireeshave enough to support themselves. Some of the basic needs of retirees willinclude a place to live, money to cater for day-to-day expenses, medical billsand emergencies. The one taboo thing retirees need to avoid is havingoutstanding loans by the time they retire from the workforce.

This is all themore reason why the world population needs to plan early for their retirement.