Retirement confidence and preparedness: A study among working adults in a northern state in Malaysia

Planning for retirement is very important for an individual because it will secure the human needs financially during the post-retirement period. However, planning for retirement is an option of personal choice.It requires a conscious decision on the individual to allocate or put aside income to allow for financial security upon retirement. Previous literature on retirement planning has shown that across countries around the world, individuals have little or no planning for their retirement.Furthermore, in Malaysia, independent surveys show that a majority of Malaysians are not prepared for retirement.Therefore, this study attempts to examine the relationship between retirement confidence and preparedness, and the factors affecting retirement confidence and preparedness.A total of 150 working individuals between the ages of 21 to 55 participated in this study.The objectives of this study are to investigate the scenario of preparedness and confidence toward their retirement and to examine the relationship between attitude towards retirement, goal clarity and financial literacy and retirement preparedness and confidence. Results showed that goal clarity is significant in the prediction of working individuals’ retirement confidence and preparedness.The results of this study have implications for working individuals to make early planning for retirement to enable them to have a strong financial base after retirement. Hence they will be more confident and prepared to face the reality of life during retirement.