Paper Key : IRJ************994
Author: Swetha,Muthumani
Date Published: 02 Apr 2025
Abstract
Abstract: Financial planning is an essential aspect of managing personal finances, especially for salaried employees who have fixed incomes and specific financial goals. This study examines the financial planning practices of salaried employees, focusing on their savings patterns, investment preferences, tax planning strategies, and retirement preparedness. The research highlights how employees prioritize financial security and risk mitigation, often favoring traditional investment options such as fixed deposits, provident funds, and insurance policies. However, limited financial literacy and risk aversion prevent many individuals from exploring high-return investment avenues like mutual funds and equities. The study also explores the role of demographic factors such as age, income, and education in shaping investment decisions. Findings indicate that while employees are aware of various investment options, they often lack proper guidance in selecting the right financial instruments. Additionally, tax-saving investments are widely used, but they are frequently chosen without comprehensive evaluation. Retirement planning remains a secondary priority for many, with contributions often being minimal or unstructured.The research underscores the need for financial literacy programs to educate salaried employees on effective financial planning strategies. Encouraging diversification, increasing awareness of modern investment opportunities, and fostering a disciplined savings culture can help employees achieve long-term financial stability. By understanding the financial behavior of salaried employees, this study provides insights that can aid policymakers, financial advisors, and employers in designing better financial education initiatives and investment solutions tailored to this demographic