Shikshan Sanshodhan : Journal of Arts, Humanities and Social Sciences

Abstract:  This study examines the relationship between financial decision-making skills and Employees’ Provident Fund (EPF) adoption among private school teachers in Nagaland, India. Despite the availability of formal retirement savings mechanisms administered by the Employees' Provident Fund Organization, EPF coverage in Nagaland’s private education sector remains below 10%, significantly lower than national averages. Using a systematic literature review (SLR) methodology, this research synthesizes 65 secondary sources published between 2010 and 2025 to analyse financial literacy levels, behavioural influences, institutional barriers, and regional contextual factors affecting retirement savings behaviour.

Findings indicate that private teachers in Nagaland exhibit low financial literacy scores (averaging 1.9–2.1 out of 5), with limited understanding of compounding, inflation, and risk diversification. Behavioural biases such as present bias and overconfidence further weaken long-term financial planning. Cultural preference for informal savings mechanisms, employer non-compliance, low wages, and rural accessibility constraints compound these challenges. The study identifies a positive correlation between financial literacy and EPF adoption, suggesting that targeted financial education and institutional reforms could substantially improve retirement security outcomes.

The research concludes that strengthening financial decision-making capabilities through structured literacy programs, behavioural interventions, and policy support mechanisms is essential to enhancing EPF participation and reducing future retirement vulnerability among Nagaland’s private teaching workforce.