This manuscript delves into the intricate relationship between income and wealth retention in Malaysia’s evolving economic landscape. It begins with an overview of life expectancy trends, emphasizing demographic shifts and economic challenges shaping financial planning. Individuals can establish a robust financial foundation by cultivating financial acumen—focusing on saving and strategic investments. This foundation shields them against unexpected setbacks and facilitates long-term wealth growth and goal attainment. Unfortunately, such planning remains voluntary and underutilized in countries like Malaysia. Financial literacy is pivotal in adequate retirement preparation, ensuring financial independence and a higher quality of life amid rising living costs and inadequate savings. Recent reforms, including raising the default retirement savings threshold and promoting annuity-based withdrawals, aim to enhance retirement security. However, diversification of post-retirement financial resources remains essential to mitigate the impact of inflation and maintain purchasing power. Social dynamics—such as family influence, peer interactions, and advice from financial experts—shape investment intentions. Moreover, future orientation is a crucial compass in personal finance, guiding individuals to align their current decisions with long-term goals. This manuscript provides valuable insights into wealth management dynamics, emphasizing that retaining wealth is as crucial as earning it.
Abdul Jakit, F. H., Abd. Ghani, J., Hamid, T. A., & Mazlan, N. S. (2023). An Analysis of Socio- Economic Determinants Affecting Retirement Adjustment and Life Satisfaction Among Public Retirees in The Klang Valley. International Journal of Economics and Management, 17(2), 177- 195. https://doi.org/10.4786/ijeam.17.2.03
Adiandari, A. M., & Fitriandari, M. (2023). Comparison of Financial Literacy in Different Countries. International Journal of Scientific Research in Science and Technology. https://doi.org/10.32628/IJSRST229687
Ajzen, I. (1985). From Intentions to Actions: A Theory of Planned Behavior. SpringerLink Series in Social Psychology. https://doi.org/10.1007/978-3-642-69746-3_2.
Alqasa, K. M., Mohd Isa F., Othman, S. N., & Saleh Zolait, A. H. (2014). The Impact os students’ attitude and subjective norm on the behavioural intention to use services of banking system. International Journal of Business Information Systems, 15(1), 105-122.
Alshebami, A. S., & Aldhyani, T. H. H. (2022). The interplay of social influence, financial literacy, and saving behaviour among saudi youth and the moderating effect of self control. Journal of Sustainbility, 14(14), 8780. https://doi.org/10.3390/su14148780.
Bai, R. (2023). Impact of financial literacy, mental bugeting and self control on financial wellbeing: Mediating impact of investment decision making. Plos ONe, 18(11), e0294466. https://doi.org/10.1371/journal.pone.0294466.
Basiglio, S., & Oggero, N. (2020). The effects of Pension information on individuals’ economic outcomes: A survery. Journal Economies, 8(3), 67. https://doi.org/10.3390/economies8030067
Bloom, D. E. (2010). Implications of Population Ageing for Economic Growth on JSTOR. Oxford Review of Economic Policy. https://doi.org/43664646.
Chen, M., Zhang, H., Liu, W., & Zhang, W. (2014). The Global Pattern of Urbanization and Economic Growth: Evidence from the Last Three Decades. PLOS ONE, 9(8). https://doi.org/10.1371/journal.pone.0103799.
Cristea, M., Noja, G. G., Stefea, P., & Sala A. L. (2020) The Impact of Population Aging and Public Health Support on EU Labor Markets. International Journal of Environmental Research and Public Health, 17(4). https://doi.org/10.3390/ijerph17041439.EPF: 6.3 million members under 55 have less than RM 10,000 savings (2023). The Star
Fiergbor, D. D. (2020). The Habit of Savings among College Students. Universal Wiser Publisher. https://doi.org/10.37256/ges.11202069.38-43.
Fong, J. H., Koh, B. S. K., Mitchell, O. S., & Rohwedder, S. (2021). Financial literacy and financial decision-making at older ages. Pacific-Basin Financial Journal, 65, 101481. https://doi.org/10.1016/j.pacfin.2020.101481.
Foziah, H., Afthanorhan, A., Ghazali, P. L., Wan Daud, W. M. N., Mahmud, M. S., & Omar, L. (2019). An Assessment of the Basic Savings of Retirees Conducted through a Mathematical Approach. International Journal of Innovation, Creativity and Change, 7(10). 140-150.
Fraczek, B., & Matula, A. G. (2019). Financial education and financial knowledge and its usage among Asperger syndrome people. Cypriot Journal of Education Sciences, 14(4), 742-749.
Giles, J., Wang, D., & Cai, W. (2012). Aging in Asia: Findings from new and emerging data initiatives. The National Academies.
Harahap, S., Thoyib, A., Sumiati, S., & Djazuli, A. (2022). The impact of financial literacy on retirement planning with seral mediation of financial risk tolerance and saving behavior: Evidence of medium enterpreneurs in Indonesia. Journals IJFS, 10(3), 66. https://doi.org/10.3390/ijfs10030066.
Haron, H., Mat Razali, N. N. S., & Mohamad, F. (2019). Factors influencing financial planning retirement amongst employees in The Private Sector in Est Coast Malaysia: Literature Review and Research Agenda. FGIC 2nd Conference on Govemance and Integrity, 1115-1129. https://doi.org/18502/kss.v3i22.5115.
Hastings, J. S., Briggitte, C. M., & Skimmyhorn, W. L. (2013). Financial literacy, financial education and ecnomic outcomes. Annu Rev Econom, 5, 347-373. https://doi.org/10.1146/annurev- economics-082312-125807.
Hoerger, M., Quirk, S. W., & Weed, N. C. (201). Development and validation of the delaying gratification inventory. Psychol Assess, 23(3), 725-738. https://doi.org/10.1037/a0023286.
Igarashi, M., Ohta, R., Kurita, Y., Nakata, A., Yamazaki, T., & Gomi, H. (2021). Exploring the competencies of Japanese Expert Nurse Practitioners: A Thematic Analysis. Healthcare (Basel), 9(12), 1674. https://doi.org/10.3390/healthcare9121674
Ja’afar, R., & Daly, K. J. (2016). Reviewing the financial soundness of the Malaysia’s employees provident fund. International Journal of Humanities and Management Science, 4(1), 14-18.
Jaafar, R., Daly, K. J., & Mishra, A. V. (2019). Challenges facing Malaysia pension scheme in an era of ageing population. Finance Research Letters, 30, 334-340. https:doi.org/10.1016/j.fri.2018.10.017.
Karakurum-Ozdemir, K., Kokkizil, M., & Uysal, G. (2019). Financial Literacy in Developing Countries, Social Indicators Research: An Internationall and Interdisciplinary. Journal for Quality-of-Life Measurement. Springer, 143(1), 325-353. https://doi.org/10.1007/s11205-018-1952-x.
Kaye, A. D., Okeagu, C. N., Pham, A. D., Silva, R. A., Hurley, J. J., Arron, B. l., Sarfraz, N., Ghali, G. E., Gamble, J. W., Urman, R. D., Liu, H., & Cornett, E. M. (2021). Economic impact of COVID-19 pandemic on healthcare facilities and systems: International perspectives. Best Pract Res Clin Anaesthesiol, 35(3), 293-306. https://doi.org/10.1016/j.bpa.2020.11.009
Kendzia, M. J., & Borrero, Y. S. (2022). Financial Literacy among the Youth in Switzerland. Journal of Financial Management, 11, 323-341.https://doi.org/10.4236/jfrm.2022.112017.
Kuhlmann, J., & Nullmeier, F. (2022). The formation of National Capital Stock and the Pension System in South Korea and Malaysia. International Impacts on Social Policy, 371-383.
Kumaraguru, L., Geetha, C., & Mohidin, R. (2022). The Factors Influence Retirement Preparation Among Gen Y in Malaysia. Advance international Journal of Banking, Accounting and Finance, 4(10), 01-12. https://doi.org/10.35631/AIJBAF.410001.
Lone, U. M., & Bhat, S. A. (2022). Impact of financial literacy on financial well-being: a mediational role of financial self-efficacy. J Financ Serv Mark, 1-16. https://doi.org/10.1057/s41264-022- 00183-8.
Lu, Z., Li, H., & Wu, J. (2024). Exploring the impact of financial literacy on predicting credit default among farmers: An analysis using a hybrind machine learning model. Borsa Istanbul Review, 24(2). https://doi.org/10.1016/j.bir.2024.01.006.
Lusardo, A. (2019). Financial Literacy and the Need for Financial Education: Evidence and Implication. Swiss Journal of Economics and Statistics, 155(1), 1-8. https://doi.org/10.1186/s41937-019- 0027-5.
Massol, Y., & Molines, A. (2015). Deerminants of risk tolerance and investment behaviour: A study of French and Swedish Business School student. Umea School of Business and Economics.
Nor, N. N. F. & Ghazali, S. (2021). Malaysia towards an ageing country. Malaysian Journal of Society and Space, 17(3), 234-245.https://doi.org/10.17576/geo-2021-1703 17.
Mehrabioun, M. (2024). A multi-theoretical view on social media continuance intention: Combining theory of Planned behaviour, expectation confirmation model and consumption value. Digital Business, 4(1), 100070. https://doi.org/10.1016/j.digbus.2023.100070.
Mohd Siti, N., Ishak, A. A., & Selvaratnam, D. P. (2019). Ageing Population's Impact on Economic Growth in Malaysia From 1981 to 2019: Evidence From an Autoregressive Distributed Lag Approach. Frontiers in Public Health. https://doi.org/10.3389/fpubh.2021.731554.
Mondejar, M. E. (2021). Digitalization to Achieve Sustainable Development Goals: Steps towards a Smart Green Planet, Science of the Total Environment, 794. https://doi.org/10.3389/fpsyg.2017.02338
Munisamy, A., Sahid, S., & Hussin, M. (2022). A Financial Literacy Model of Malaysian B40 Households: The Case of Financial Well-Being, Education Level and Socioecomonic Status. MDPI Proceedings, 82(1), 64. https://doi.org/10.3390/proceedings2022082064.
Nagarajan, N. R., & Andrew S. (2023). Policy Initiatives to Address the Challenges of an Older Population in the Workforce. Ageing International, 48(1), 41-77, https://doi.org/10.1007/s12126-021-09442-w.
Nguyen, T. A., & Rozsa, Z. (2019). Financial literacy and financial advice seeking for retirement investment choice. Journal of Competitiveness, 11(1), 70-83. https://doi.org/10.7441/joc.2019.01.05.
Nguyen, T. A., Rozsa, Z., Belas, J., & Belasova, L. (2017). The effects of perceived and actual financial knowledge on regular personal savings: Case of Vietnam. Journal of international studies, 10(2), 278-291. https://doi.org/10.14254/2071-8330.2017/10.
Niu, G., Zhou, Y., & Gan, H. (2020). Fiancial literacy and retirement preparation in China. Pacific-Basin Finance Journal, 59, 101262. https://doi.org/10.1016/j.pacifin.2020.101262.
Noland, M. (2000). Japan and the International economic institutions. Peterson Institute for International Economics.
Noviarini, J., Coleman, A., Roberts, H., & Whiting, R. H. (2021). Financial literacy, debt, risk tolerance and retirement preparedness: Evidence from New Zealand. Pacific-Basin Finance Journal, 68, 101598. https://doi.org/10.1016/j.pacfin.2021.101598.
Peng, T. N., Cheok, C. K., & Rasiah, R. (2015). Revisiting Malaysia’s Population-Development Nexus. Faculty of Econmonics and Administration, UKM.
Rahman, M., Isa, C. R., Masud, M. M. (2021). The role of financial behaviour, financial litercy, and financial stress in explaining the financial well-being of B40 group in Malaysia. Futur Bus J, 7(52), https://doi.org/10.1186/s43093-021-00099-0.
Samuel, L. J., Wright, R., Taylor, J., Lavigne, L. C. R., & Szanton, S. L. (2023). Social norms about handling financial challenges in relation to healh-protective capacity among low-income older adults. Oxford journals the gerontologist, 63(4), 783-794. https://doi.org/10.1093/geront/gnac061.
Selvadurai, V., Kenayathulla, H. B., & Siraj, S. (2018). Financial Literacy Education and Retirement Planning in Malaysia. Malaysian Online Journal of Education Management, 6(2), 41-66. https://doi.org/10.22452/mojem.vol6no2.3
Shah, S. S., & Asghar, Z. (2023). Dyanmics of social influence on consumption choice: A social network representation. Heliyon, 9(6), e17146. https://doi.org/10.1016/j.heliyon.2023.e17146.
Shaira Ramil, N. I., & Mohamad Shariff, N. S. (2023). A Study on Retirement Preparedness and Confidence among Private Sector Employees in Malaysi. Malaysian Journal of Science, Health & Technology, 9(2). https://doi.org/10.33102/mjosht.v9i2.328.
She, L., Ma, L., & Fomani, F. K. (2021). The consideration of future consequences scale among Malaysian young adults: A Psychometric Evaluation. Front Psychol, 12, 770609. https://doi.org/10.3389/fpsyg.2021.770609.
Tao, H., Sun,X., Liu, X., Tian, J., & Zhang, D. (2022). The Impact of Consumer Purchase Behavior Changes on the Business Model Design of Consumer Services Companies Over the Course of COVID-19. Frontiers in Psychology, 13, 818845, https://doi.org/10.3389/fpsyg.2022.818845.
Topa, G., Lunceford, G., & Boyatzis, R. E. (2017). Financial Planning for Retirement: A Psychosocial Perspective. Frontiers in Psychology, 8. https://doi.org/10.3389/fpsyg.2017.02338
Wan-Fei, K., Chan, Y. M., Nasaruddin, N. H., Alias, S., Tan, L., & Ganapathy, S. S. (2023). Malaysian burden of disease: years of life lost due to premature deaths. BMC Public Health, 13(1383). https://doi.org/10.1186/s12889-023-16309-z
Xie, X., Osinska, M., & Szczepaniak, M. (2023). Do Young generations save for retirement? Ensuring financial security of Gen Z ad Gen Y. Journal of Policy Modeling, 45(3), 644-668. https://doi.org/10.1016/j.polmod.2023.05.003.
Xu, Y., Du, J., Shafique Khan, M. A., Jin, S., Altaf, M., Anwar, F., & Sharif, I. (2022). Effects of Subjective Norms and environmental mechanism of green purchase behaviour: An extended model of theory of Planned Behavior. Front. Environ. Sci, 10. https://doi.org/10.3389/fenvs.2022.779629.
Xun, N. Y., Xiang, P. Y., & Zher, S. M. (2022). The financial satisfaction of personal retirment planning among Malaysian youth EPF contributors during COVID-19 Pandemic. Universiti Tunku Abdul Rahman.
Yean, T. F., Johari, J., & Mohd Sukery, A. F. (2015). The Influence of Attitude, Subjetive Norms, and Perceived Behavioural Control on Intention to Return to Work: A Case of Socso’s Insured Employees. Kajian Malaysian, 33(1), 141-154.
Yeo, K. H. K., Lim, W. M., & Yii, K. J. (2023). Financial planning behaviour: a systematic literature review and new theory development. Journal of Financial Services Marketing, 1-23
Zhou, J., Z., & Ye, X.(2023). Aging Population and Digital Inclusive Finance, a Natural Experiment from China. PLOS ONE, 18(11). https://doi.org/10.1371/journal.pone.0287292.
Krishnaveni, V., Jusoh, Z. M., Othman, M. A., & Zainudin, N. (2024). Financial Security in Retirement: The Importance of Savings vs Earnings in Malaysia. International Journal of Academic Research in Business and Social Sciences, 14(10), 1671–1683.
Copyright: © 2024 The Author(s)
Published by Knowledge Words Publications (www.kwpublications.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
