Behavioral and Psychological Factors Influencing Retirement Decisions Among Young Workers in Rural and Urban Sabah, Malaysia

This study examines how young workers in rural and urban Sabah, Malaysia, base their retirement choices on psychological and behavioral aspects. Numerous factors, including individual beliefs, societal conditions, and environmental settings, influence retirement, a significant life transition. While everyone should make retirement plans, workers in rural and urban areas differ from one another. Rural workers typically have lower financial literacy and less access to financial services, whereas urban workers usually enjoy greater financial education and services. To better understand the variables and challenges influencing retirement behavior in these diverse settings, this research will examine theories of aging, such as the theory of planned behavior (TPB), continuity theory, and disengagement theory. This study evaluates how current policies affect young workers' retirement planning and identifies the main factors influencing retirement savings behavior. The research will take a quantitative approach, analyze the data using the PLS-SEM model, and test validity and reliability against common method bias in two steps. The results emphasize the necessity of specialized policy interventions to guarantee the well-being and financial stability of young workers in Sabah's rural and urban settings about the need for focused financial literacy programs and retirement planning initiatives catered to Sabah, Malaysia's rural and urban areas, by offering insightful information about the behavioral and psychological factors influencing young workers' retirement decisions.