Preparing for retirement is the key to a comfortable retirement. The purpose of this study is to analyze the factors that determine the retirement preparation of Gen Y in Selangor, Malaysia. A model was developed and tested from an extension of the theory of planned behavior, which included individual differences in proactivity and time discounting in retirement preparation. The study uses the TPB as its main overarching theory, along with the life cycle hypothesis and prospect theory to construct its exploratory conceptual framework. A convenience sample of Gen Y aged 24 to 41 is used for this study. The study collected data via an online survey and a total of 384 responses were collected. The structural equation model predicts that attitudes, perceived behavior control, proactive and time discounting positively predict preparation for retirement, whereas subjective norms do not correlate positively. The result of this study will encourage Gen Y and others to prepare towards retirement to maintain a standard of living upon retirement. Future researchers, the government, insurance industries, and investment firms will benefit from this research by gaining a better understanding of influencing factors on the preparation for retirement.
Preparing for retirement is one of the most important elements of a comfortable post- retirement life. The purpose of this study is to investigate the factors that influence the preparation towards retirement among Gen Y in Malaysia. In particular, this research investigated the relationship between demographic variables, attitude, subjective norms, perceived behavioral control, individual differences, and preparation towards retirement. This study used a convenience sampling method and involved Gen Y who are aged between 24 and 41 years old. Questionnaires were used as an instrument in this study. All the data was gathered from 384 respondents through an online survey. The questionnaire included the demographic profile of respondents and variable-related questions. This study uses the TPB as its main overarching theory, as well as life cycle hypothesis, symbolic interaction theory and prospect theory to frame its exploratory conceptual framework that explains the retirement preparation. The structural equation model predicts that attitudes, perceived behavioral control, and individual differences are positively correlated with preparation towards retirement among Gen Y, while demographic variables and subjective norms have no positive correlation. As a result of this study, Gen Y and other parties involved will realize that early preparation is crucial to sustaining after retirement. This research will benefit future researchers, government, insurance industries, and investment companies in gaining a better understanding of the factors that influence the preparation towards retirement. Finally, the article discusses the implications of the study to theory and practice; limitations, and recommendations for future research.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.