Universal Journal of Accounting and Finance Vol. 10(4), pp. 871 - 882
DOI: 10.13189/ujaf.2022.100409
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Determinants of Retirement Preparedness: Understanding Malaysian Millennials

Hartini Jaafar ^*, Hazianti Abdul Halim , Rosmini Ismail
Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjong Malim, Perak, Malaysia

ABSTRACT

Retirement refers to a phase, in which an individual withdraws permanently from active working life and is no longer earning a steady income from employment. Unfortunately, their expenses will continue and they will need to depend primarily on their accumulated savings. However, the hard reality is that retirement planning usually falls at the bottom of the financial priority list among Malaysians. Considering the poor retirement planning among Malaysians, their level of financial preparedness for retirement warrants further investigation. Therefore, this study aims to examine the determinants of retirement preparedness among Malaysian millennials that are entering their career. In particular, it investigates whether financial literacy, financial stress, financial management practices or saving behaviour influence the level of retirement preparedness among this group of respondents. A survey questionnaire was designed and administered to a sample of 171 final-year bachelor's degree students of Universiti Pendidikan Sultan Idris aged between 20 and 38 years. The results show that financial stress and saving behaviour are significant predictors of retirement preparedness. However, financial literacy and financial management practices are found to have no influence on retirement preparedness. This study contributes to the extant literature by examining the segment that forms the largest working population in the country. Hence, our findings should provide more insights to interested stakeholders in designing new or improving existing financial planning programs or mechanisms, particularly those related to retirement to better promote sound retirement planning among millennials.

KEYWORDS
Retirement Preparedness, Financial Planning, Millennials, Malaysia

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Hartini Jaafar , Hazianti Abdul Halim , Rosmini Ismail , "Determinants of Retirement Preparedness: Understanding Malaysian Millennials," Universal Journal of Accounting and Finance, Vol. 10, No. 4, pp. 871 - 882, 2022. DOI: 10.13189/ujaf.2022.100409.

(b). APA Format:
Hartini Jaafar , Hazianti Abdul Halim , Rosmini Ismail (2022). Determinants of Retirement Preparedness: Understanding Malaysian Millennials. Universal Journal of Accounting and Finance, 10(4), 871 - 882. DOI: 10.13189/ujaf.2022.100409.