Determinants of Financial Retirement Planning in Malaysia: A Conceptual Paper

This study aims to develop a conceptual framework that explores the determinants of financial literacy and their influence on financial retirement planning among Malaysians. In light of increasing life expectancy, rising medical costs, and economic uncertainties, effective retirement planning has become a critical concern for individuals and policymakers alike. The framework focuses on three primary determinants: education level, income level, and medical costs. Education level shapes an individual’s capacity to understand and apply financial concepts, thereby influencing their planning behavior. Income level affects one’s ability to save and invest for retirement, while escalating medical costs represent a major financial risk that can undermine retirement preparedness. The interplay of these factors highlights the need for a holistic approach to improving financial literacy to ensure adequate retirement planning. This framework contributes to the existing literature by providing a basis for future empirical research and offering insights for policymakers to develop targeted financial education and retirement readiness programs tailored to Malaysia’s socio-economic context.