Determinant Of Employee's Retirement Planning: A Literature Review

Abstract

The world is going into ageing population and Malaysia is also experiencing the same situation. A good retirement plan is needed to continue decent life in older age. To enjoy this, there is a need to pre-plan retirement since early working days. Monthly budget should not only involve current expenditure but also savings for the future. However, do Malaysian really do plan for their retirement? This study attempts to investigate the issue by reviewing literatures that dominates retirement planning research. This is a conceptual paper that identified factors that can give influence towards retirement planning. The findings showed mixed results and three independent variables have been identified in retirement planning literature including demographic factors, social influence and financial literacy. Based on previous research, most Malaysians are not ready for retirement. Those who are not prepared early for retirement might not be able to achieve their retirement goal. Therefore, findings in this review will be beneficial not only to employees in arranging proper retirement plan but as well as to policy makers as they can arrange a better plan in supporting employee’s retirement planning.