Investment Behaviour of Senior Citizens: A Study with Reference to Bengaluru City

Abstract

This study examines the investment patterns of senior citizens in Bengaluru, a metropolitan city in India characterized by its rapidly evolving economic landscape and demographic transitions. With an increasing proportion of the population entering retirement age, understanding the financial behaviors, preferences, and challenges faced by this demographic is vital for tailoring financial products and services to meet their needs. The research employs a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather comprehensive data on investment choices, risk tolerance, and the influence of socio-economic factors. Findings reveal that senior citizens in Bengaluru exhibit a diverse range of investment preferences, influenced by factors such as income levels, financial literacy, health considerations, and familial responsibilities. Many respondents demonstrated a cautious approach to risk, favoring traditional investment avenues such as fixed deposits, government bonds, and real estate, while a smaller segment showed interest in equity markets and mutual funds, often driven by the desire for higher returns and financial independence. The qualitative insights further highlight the role of financial advisors, peer influence, and community resources in shaping investment decisions among seniors. Additionally, the study identifies barriers such as lack of financial literacy, fear of market volatility, and limited access to tailored financial advice, which hinder optimal investment strategies. The implications of this research extend to financial institutions and policymakers, suggesting the need for targeted educational initiatives and the development of customized financial products that cater to the unique requirements of senior citizens. Overall, this investigation into the investment patterns of senior citizens in Bengaluru contributes to a deeper understanding of their financial behaviors and underscores the importance of supporting this demographic in achieving financial security and well-being in their retirement years.