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Determinants of Financial Retirement Planning in Malaysia: A Conceptual Paper

Author

Listed:
  • Mohd Sufian Ab Kadir

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Branch, KM26, Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia)

  • Maimunah Johari

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Branch, KM26, Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia)

  • Ngau Duo Seng

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Branch, KM26, Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia)

  • Nor Balkish Zakaria

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Branch, KM26, Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia)

  • Norlinda Tendot Abu Bakar

    (Faculty of Business and Management, Universiti Teknologi MARA, Melaka Branch, KM26, Jalan Lendu, 78000 Alor Gajah, Melaka, Malaysia)

Abstract

This study aims to develop a conceptual framework that explores the determinants of financial literacy and their influence on financial retirement planning among Malaysians. In light of increasing life expectancy, rising medical costs, and economic uncertainties, effective retirement planning has become a critical concern for individuals and policymakers alike. The framework focuses on three primary determinants: education level, income level, and medical costs. Education level shapes an individual’s capacity to understand and apply financial concepts, thereby influencing their planning behavior. Income level affects one’s ability to save and invest for retirement, while escalating medical costs represent a major financial risk that can undermine retirement preparedness. The interplay of these factors highlights the need for a holistic approach to improving financial literacy to ensure adequate retirement planning. This framework contributes to the existing literature by providing a basis for future empirical research and offering insights for policymakers to develop targeted financial education and retirement readiness programs tailored to Malaysia’s socio-economic context.

Suggested Citation

  • Mohd Sufian Ab Kadir & Maimunah Johari & Ngau Duo Seng & Nor Balkish Zakaria & Norlinda Tendot Abu Bakar, 2025. "Determinants of Financial Retirement Planning in Malaysia: A Conceptual Paper," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 2884-2893, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-8:p:2884-2893
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    References listed on IDEAS

    as
    1. Mahfuzur Rahman & Che Ruhana Isa & Muhammad Mehedi Masud & Moniruzzaman Sarker & Nazreen T. Chowdhury, 2021. "The role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of B40 group in Malaysia," Future Business Journal, Springer, vol. 7(1), pages 1-18, December.
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    6. Vivekananda Das, 2025. "Financial Literacy and Financial Well-Being Amid Varying Economic Conditions: Evidence from the Survey of Household Economics and Decisionmaking 2017–2022," IJFS, MDPI, vol. 13(2), pages 1-39, May.
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