Abstract
This study examines the effect of financial literacy, saving attitudes, social influence, and goal clarity on the retirement planning construct. In addition, it investigates how the public demographic profile moderates these relationships. The questionnaire approach was utilized to collect data by adopting and customizing the measurement scale from previous studies. A systematic random sampling approach was employed on 323 prospective respondents. The outcomes of this study illustrate that all relationships are significantly and positively associated with retirement planning using structural equation modeling (SEM). Furthermore, all moderator variables (gender, age, status, income, and education) moderated the relationships. The government should construct a holistic retirement planning model that is based on demographic characteristics.
Highlights
The Department of Statistics Malaysia announced that the number of employed people has been increasing from 5.2 million in 1982 to 14.99 million in June 2020 [1]
This study contributes to the methodological aspects by underlining the importance of supplementary analyses to determine that the researchers have obtained the information in more detail
This study concludes that single women at the age of 20–30, with high education and low income, have high financial literacy and goal clarity in preparing for their retirement savings, which is consistent with Sabri and Juen’s [14] findings
Summary
The Department of Statistics Malaysia announced that the number of employed people has been increasing from 5.2 million in 1982 to 14.99 million in June 2020 [1]. If this situation is maintained, the number of preretirees will increase in the future. The reality hits when most locals admit that they do not have sufficient savings for their retirement [2,3,4] This financial problem is happening in Malaysia and in other developed and developing countries. The majority of the employees do not know about financial management, which has led to the loss of savings because of nonperforming financial instruments
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