Military households face unique financial pressures due to unpredictable service conditions, mandatory early retirement, and limited post-service income continuity. Despite stable government remuneration and pension schemes, many Malaysian Armed Forces (MAF) personnel exhibit low levels of retirement preparedness and financial planning. This study investigates the relationship between financial literacy, financial behavior, and retirement awareness, and how retirement awareness mediates the association between financial literacy and financial planning among Malaysian military households. A total of 500 respondents from the MAF were selected using stratified random sampling across service branches (Army, Navy, Air Force). Data was collected via a structured questionnaire and analyzed using IBM SPSS and PROCESS Macro for mediation testing. Findings revealed that financial literacy and behavior significantly influenced retirement awareness and financial planning, while retirement awareness partially mediated the relationship between financial literacy and financial planning. Results also indicate that military personnel with higher retirement awareness engage in more prudent long-term financial behaviors, such as savings and investment planning. This study contributes to the growing literature on household financial well-being by extending the mediation framework of financial awareness within institutionalized populations. It provides actionable insights for defense policymakers, military financial planners, and welfare agencies in promoting early financial readiness and sustainable retirement security among military families.
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