IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-6p6427-6436.html
   My bibliography  Save this article

Financial Sustainability and Socio-Economic Well-Being of Senior Citizens in Addressing an Ageing Nation Towards 2030

Author

Listed:
  • Nor Hazanah Miskan

    (Faculty of Business, Hospitality and Technology, Universiti Islam Melaka, Malaysia)

  • Nurulhayah Muhamad

    (Faculty of Business, Hospitality and Technology, Universiti Islam Melaka, Malaysia)

  • Maryam Mohd Esa

    (Faculty of Business, Hospitality and Technology, Universiti Islam Melaka, Malaysia)

  • Farah Saniah Mohd Zabidi

    (Faculty of Business, Hospitality and Technology, Universiti Islam Melaka, Malaysia)

  • Nurul Liyana Hussin

    (Faculty of Business, Hospitality and Technology, Universiti Islam Melaka, Malaysia)

  • Zulkefly Abdul Karim

    (Faculty of Economics and Management, Malaysia)

Abstract

Ageing is a natural process involving various life transitions, and many countries are experiencing a demographic shift toward older populations. This trend poses significant challenges, especially for developing nations like Malaysia, which is expected to become an aged nation by 2030. Unlike developed countries with stronger infrastructure and intellectual resources, Malaysia faces difficulties in preparing for this transition, particularly in ensuring the financial sustainability of its ageing population. This study aims to identify key factors that contribute to financial sustainability and socio-economic well-being among the senior citizens. Using a quantitative approach, the research employed Structural Equation Modeling (SEM) through path analysis to examine the effects of four variables: income, welfare, expenses, and savings. Data analysis was conducted using AMOS software to understand the relationships between these factors. The findings show that income and expenses have a positive and significant impact on financial sustainability among senior citizens. These results support economic theories suggesting that individuals with better financial resources are more likely to manage their finances sustainably. However, welfare and savings did not show a significant influence, indicating they may play a lesser role in financial stability for the elderly. This research highlights the economic implications of ageing and the potential strain on public finances. The insights provide valuable guidance for policymakers in designing effective financial and social strategies to support Malaysia’s ageing population. As the country approaches aged nation status, there is an urgent need for well-planned policies to transform senior citizens into active contributors to national development.

Suggested Citation

  • Nor Hazanah Miskan & Nurulhayah Muhamad & Maryam Mohd Esa & Farah Saniah Mohd Zabidi & Nurul Liyana Hussin & Zulkefly Abdul Karim, 2025. "Financial Sustainability and Socio-Economic Well-Being of Senior Citizens in Addressing an Ageing Nation Towards 2030," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 6427-6436, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:6427-6436
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-6/6427-6436.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/financial-sustainability-and-socio-economic-well-being-of-senior-citizens-in-addressing-an-ageing-nation-towards-2030/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ozge Gokdemir, 2015. "Consumption, savings and life satisfaction: the Turkish case," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(2), pages 183-196, June.
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    3. Colleen Howell & Ryan Howell & Kurt Schwabe, 2006. "Does Wealth Enhance Life Satisfaction for People Who are Materially Deprived? Exploring the Association among the Orang asli of Peninsular Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(3), pages 499-524, May.
    4. Michael D. Hurd & Susann Rohwedder, 2011. "Economic Preparation for Retirement," NBER Chapters, in: Investigations in the Economics of Aging, pages 77-113, National Bureau of Economic Research, Inc.
    5. Susan Hutchinson & Douglas Kleiber, 2023. "On Time, Leisure, and Health in Retirement: Implications for Public Health Services," IJERPH, MDPI, vol. 20(3), pages 1-12, January.
    6. Colleen J. Howell & Ryan T. Howell & Kurt A. Schwabe, 2006. "Does Wealth Enhance Life Satisfaction for People Who are Materially Deprived? Exploring the Association among the Orang asli of Peninsular Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(3), pages 499-524, May.
    7. Wan Mashumi Wan Mustafa & Md. Aminul Islam & Muhammad Asyraf & Md. Sharif Hassan & Pradip Royhan & Shafiqur Rahman, 2023. "The Effects of Financial Attitudes, Financial Literacy and Health Literacy on Sustainable Financial Retirement Planning: The Moderating Role of the Financial Advisor," Sustainability, MDPI, vol. 15(3), pages 1-17, February.
    8. Daniel W. L. Lai & Yong-Xin Ruan & Julia Juan Wang & Emma H. S. Liu & Jia-Jia Zhou, 2023. "Experience of Chinese Recent Retirees on the Effects of Retirement on Healthy Ageing in Shenzhen and Hong Kong," IJERPH, MDPI, vol. 20(4), pages 1-13, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qian Li & Xiaoguang Huang & Hanwen Zhang, 2023. "Exploring the Effects of Consumption Expenditures on Life Satisfaction in China," Journal of Happiness Studies, Springer, vol. 24(6), pages 1963-1990, August.
    2. Fengyu Wu, 2020. "An Examination of the Effects of Consumption Expenditures on Life Satisfaction in Australia," Journal of Happiness Studies, Springer, vol. 21(8), pages 2735-2771, December.
    3. Song-Iee Hong & Chang-Keun Han, 2014. "Asset Impacts on Life Satisfaction in an Asset-Rich Country: Focusing on Older Adults in Singapore," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(1), pages 125-140, August.
    4. Antje Jantsch & Julia Blanc & Tobias Schmidt, 2024. "Beyond Income: Exploring the Role of Household Wealth for Subjective Well-Being in Germany," Journal of Happiness Studies, Springer, vol. 25(7), pages 1-33, October.
    5. Rajat Deb, 2016. "Determinants of Savings in Sukanya Samriddhi Account: Evidence from Tripura," IIM Kozhikode Society & Management Review, , vol. 5(2), pages 120-140, July.
    6. Matt Vassar, 2008. "A note on the score reliability for the Satisfaction With Life Scale: an RG study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(1), pages 47-57, March.
    7. Siew Yap & Rozumah Baharudin, 2016. "The Relationship Between Adolescents’ Perceived Parental Involvement, Self-Efficacy Beliefs, and Subjective Well-Being: A Multiple Mediator Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 257-278, March.
    8. Dung Phuong Hoang & Thi Hong Hai Nguyen & Nham Linh Vuong & Dat Luong, 2023. "Linking psychological needs, perceived financial well-being and loyalty: the role of commercial banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 466-487, September.
    9. Jantsch, Antje & Le Blanc, Julia & Schmidt, Tobias, 2022. "Wealth and subjective well-being in Germany," Discussion Papers 11/2022, Deutsche Bundesbank.
    10. Long She & Ratneswary Rasiah & Marc Arul Weissmann & Harpaljit Kaur, 2024. "Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia," FIIB Business Review, , vol. 13(1), pages 118-135, January.
    11. Viren Swami & Tomas Chamorro-Premuzic, 2009. "Psychometric Evaluation of the Malay Satisfaction With Life Scale," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 92(1), pages 25-33, May.
    12. Xing Ji & Jia Chen & Hongxiao Zhang, 2023. "Agricultural Specialization Threatens Sustainable Mental Health: Implications for Chinese Farmers’ Subjective Well-Being," Sustainability, MDPI, vol. 15(20), pages 1-22, October.
    13. Francisco Zorondo-Rodríguez & Mar Grau-Satorras & Jenu Kalla & Katie Demps & Erik Gómez-Baggethun & Claude García & Victoria Reyes-García, 2016. "Contribution of Natural and Economic Capital to Subjective Well-Being: Empirical Evidence from a Small-Scale Society in Kodagu (Karnataka), India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 919-937, June.
    14. Masferrer-Dodas, Elena & Rico-Garcia, Luis & Huanca, Tomás & Reyes-García, Victoria, 2012. "Consumption of market goods and wellbeing in small-scale societies: An empirical test among the Tsimane' in the Bolivian Amazon," Ecological Economics, Elsevier, vol. 84(C), pages 213-220.
    15. Cheah, Yong Kang & Tang, Chor Foon, 2013. "The Socio-Demographic Determinants Of Self-Rated Happiness: The Case Of Penang, Malaysia," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 54(1), pages 1-16, June.
    16. Aguado, Mateo & González, José A. & Bellott, Kr'sna & López-Santiago, César & Montes, Carlos, 2018. "Exploring subjective well-being and ecosystem services perception along a rural–urban gradient in the high Andes of Ecuador," Ecosystem Services, Elsevier, vol. 34(PA), pages 1-10.
    17. Chris Sibley & Niki Harré & William Hoverd & Carla Houkamau, 2011. "The Gap in the Subjective Wellbeing of Māori and New Zealand Europeans Widened Between 2005 and 2009," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(1), pages 103-115, October.
    18. Ozge Gokdemir, 2015. "Consumption, savings and life satisfaction: the Turkish case," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(2), pages 183-196, June.
    19. Daniel Fernandes & John G. Lynch & Richard G. Netemeyer, 2014. "Financial Literacy, Financial Education, and Downstream Financial Behaviors," Management Science, INFORMS, vol. 60(8), pages 1861-1883, August.
    20. David Blake & John Pickles, 2021. "Mental Time Travel and Retirement Savings," JRFM, MDPI, vol. 14(12), pages 1-13, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:6427-6436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.