Changing times affect the lifestyle and expenditure associated with the changed lifestyle. If not financially planned properly in advance, the consequences are the poor standard of living post-retirement. It is imperative that individuals are aware and act with financial prudence to avoid these adverse consequences. Extensive literature review suggests that there is a correlation between financial literacy and retirement planning, which is a function of socio-demographic, health and psychological factors. This paper focuses on financial preparedness of the technical teachers of various engineering colleges of Andhra Pradesh, a well-developed state of India. This paper shows that financial knowledge and financial risk tolerance play mediating role between future time perspective and perceived financial preparedness for retirement. A sample of 431 respondents was collected and logistic regression was used to show the mediating role of financial knowledge and financial risk tolerance. This paper is also aimed at measuring the influence of socio-demographic and health factors on perceived financial preparedness for retirement.

Financial preparedness, retirement planning, Financial literacy, Future time perspective (FTP), Financial Knowledge (FK) & Financial risk tolerance (FRT).