Bridging Generation Gaps In Retirement Planning Behaviour: Insights from Financial Literacy, Risk Tolerance, Self-Efficacy and Goal Clarity in Malaysia

HRMARS - Using the Life Course Theory and Theory of Planned Behaviour as the theoretical framework, the study examines the effect of financial literacy, risk tolerance, self-efficacy, goal clarity, and retirement planning behaviour among generations X, Y, and Z in Malaysia. A questionnaire survey was conducted and 169 responses were obtained. The study found that financial literacy and goal clarity are significant for retirement preparedness across the three age groups, but risk tolerance is only significantly relevant to Generation X, and it is statistically very high among them. Besides, self-efficacy and risk tolerance and are significant for retirement saving intentions across all three generations. This study contributes to the Malaysian policymakers and educators in gaining understanding on how sub-group characteristics can affect retirement planning behaviour. Such information is important in ensuring the continuity of the social welfare system over time. In addition, the results have crucial implications for age-specific financial literacy workshops in identifying planning strategy to employ over time to ensure economic stability and a better quality of life.