Lubna Ismail


Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award


Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

In our part of the world, retirement planning is one last thing that comes to the mind of salaried class. Realization of this comes late in the working life and then people look for possible investment plans. For senior retiring individuals, this is quite a difficult phase and if there lies financial inadequacy, elderly people often face mental, physical and psychological issues to adjust in the society and family. In the absence of holistic social security plan, early futuristic planning for post-retirement life is critically important even for the young work force as well.

Reason for selecting this topic is that very few isolated workings for investments were conducted but for long horizon of retirement, it is not available for Pakistanis. Karachi being the financial hub, modem and fast paced city of the estate, is selected so life patterns of working officials will be noted in the wake of cultural evolution and can be utilized for other places with similar statistics. This report, thus aims to identify the trends and related bottlenecks on retirement planning and provide recommendations to cater for the needs of future retirees.

This report is based on the investigation of available monetary avenues in the form of employer contributed grants and commercial financing opportunities to invest wisely in such assets that will be useful for life cycle events of Karachi's working class. Main sources of secondary data are the global saving trends of advanced and emerging economies; their governmental initiatives, social security reforms and its implications on national economy if take strategic actions for this segment. To identify the reasons of in activeness in this area, four interviews were taken from senior officials of Employee Old-Age Benefits Institution (EOBI), National Savings, Actuarial services who are directly involved in research and development of future savings, retirement plans and last one from Government of Sindh's (GoS) Finance division to evaluate the difference of retirement offerings to government staff.

To gain the knowledge of behavioral trend, focus group discussion was conducted with employees and retired individuals of various age groups and a dichotomous questionnaire was developed to seek views about the topic, reasons of its avoidance and financial literacy among Karachi's salaried class. From these, following are deduced:

• Low saving rates in Pakistan despite of higher rate on investment returns.

• Lack of awareness and materialistically for long term futuristic planning.

• Limited marketing of saving and investment products by government's banking and non-banking financial organizations despite of reliance of large scale retirees.

• Restricted audience with high net worth for private financial institutes.



Available for download on Tuesday, December 31, 2030

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