Abstract
The purpose of this study is to determine the factors influencing retirement planning among young professionals in private sector. There are three factors identified in this research which includes financial literacy, job satisfaction and savings behavior. Data used for this study are primary and secondary data such as from journal articles, periodicals and textbooks. A questionnaire is distributed and administered to extract data from the respondents consist of executives, non-executives and managers around Klang Valley, aged between 20 - 34 years old. The data is analyzed using frequency analysis, reliability test and Pearson correlation in order to obtain a clear findings and results. The findings show that financial literacy, job satisfaction and savings behavior has a positive association towards retirement planning. Furthermore, it is shown that financial literacy and saving behavior have a significant relationship with retirement planning. It is hope that this study will inform and encourage the young professionals to save and invest for the retirement.
Highlights
This research paper discusses retirement planning among young professionals in private sector and factors that can be an encouragement for them to plan for the retirement
One of the retirement planning introduced by the Malaysian government is Employee Provident Fund (EPF) pension where every employee has been required to make a mandatory contribution to the Employee Provident Fund (EPF) pension scheme
The ages between 15 to 24 years is not suitable to be used in this study because it only includes group of young teenagers who are still studying in secondary high schools or universities and not many of them get employed in Malaysian private and public sectors
Summary
This research paper discusses retirement planning among young professionals in private sector and factors that can be an encouragement for them to plan for the retirement. The concern over retirement planning is an interest of employees and government. One of the retirement planning introduced by the Malaysian government is Employee Provident Fund (EPF) pension where every employee has been required to make a mandatory contribution to the Employee Provident Fund (EPF) pension scheme. The EPF is a social security institution formed according to the Laws of Malaysia, Employees provident Fund Act 1991 (Act 452) which provides retirement benefits for members. The members of EPF are from private and non-pensionable public sector employees. The employees' monthly statutory contribution rate reduced from 11% to 8% for members below age 60 and 5.5% to 4% for those age 60 and above, effective March 2016 until December 2017 salary
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