Pension Plans:Awareness among Private Sector Employees-An Empirical Study

The main aim of the study was to examine the level of awareness of employees working in private sector in Salem and Erode districts of Tamil Nadu. The study was conducted with a view to find out the feasibility for investments in pension / group insurance plans. A wellstructured questionnaire was prepared and distributed among 300 working people in Salem and Erode and 284 valid responses were received and properly analysed through statistical software. It was found through the study that the employees do not have the sufficient level of awareness about various pension schemes available in the insurance market and also they do not know much about the benefits of the pension schemes. However, the study found that there is a fair amount of interest among the employees to know more about pension plans and was eager to make invest in pension plans / group insurance plants when they are properly advised on the various schemes available in the market. The study concludes with the suggestion to the insurance companies to run awareness compaign in the State to create more awareness among working people to make investment in pension plans and have their lives secured after retirement.