Intention to shift to the Islamic pension scheme (IPS): an empirical analysis of Maldivians’ pension contributors

Purpose This study aims to investigate the factors influencing participation in Islamic pension schemes (IPS) in the Maldives. Specifically, this study examines how attitude, subjective norms and perceived behavioral control shape pension contributors’ intention to shift to Islamic pensions as well as assesses the moderating role of Islamic financial literacy in these relationships. Design/methodology/approach This research uses a quantitative approach, where the Extended Theory of Planned Behavior (ETPB) and Islamic financial literacy as a moderating factor were used to identify the intention of Maldivians to shift to Islamic pension. The convenient sampling method was used, where 136 online survey questionnaires were collected from respondents. Findings The results show that the attitude, perceived behavioral control and Islamic financial literacy significantly influence the intention of Maldivians to shift to Islamic pension in the country. However, it was found that subjective norms were insignificant. It was also found that attitudes and perceived behavioral control show a significant impact on the intention to change to Islamic pension with Islamic financial literacy as a moderating while subjective norms were found to be insignificant. Practical implications The insights from this research would be useful for the pension office, other government institutions and policymakers in other countries and in the Maldives to identify what attracts and leads people to change to Islamic pension and offer IPS accordingly. These findings extend ETPB by incorporating ethical analysis, showing that pension adoption is both a behavioral and a moral decision. This study offers theoretical contributions by bridging behavioral intention models with ethical frameworks, demonstrating that constructs, such as attitude and literacy, can be understood as moral conviction and ethical competence. From a policy perspective, the results highlight the ethical responsibility of Muslim-majority states to design retirement systems consistent with citizens’ values, thereby enhancing institutional legitimacy. More broadly, the comparative analysis enriches global debates on the morality of pension schemes, positioning Islamic pensions as a distinctive model that integrates justice, fairness and faith-based legitimacy. Originality/value To the best of the authors’ knowledge, this is the first study to comprehensively explore the factors for participation in IPS in the Maldives using the ETPB, thereby offering novel insights into behavioral intentions in a Shariah-compliant context.