Analysing the Relationship between Financial Related Factors and the Adoption of Private Retirement Scheme

Retirement planning is important to ensure sustainable living for individuals upon retirement. Unlike government pensioners, who are eligible for a pension upon retirement, private sector employees and self-employed individuals rely solely on their limited savings in the Employees Provident Fund. A private retirement scheme has been introduced by the government to help Malaysians build their retirement funds. Hence, this research presents a conceptual framework on the relationship between financial-related factors (financial literacy, financial risk tolerance, financial attitude, financial well-being, and financial behaviour) and the adoption of the Private Retirement Scheme in Malaysia. Research hypotheses are developed based on the proposed structural relationship.