The triple threat to retirement savings: a typological analysis of financial barriers

Purpose This study aims to uncover distinct patterns of retirement savings barriers among Malaysian working adults and examine how demographic factors shape these barriers, ultimately informing more targeted financial interventions. Design/methodology/approach A total of 6,252 government employees participated in an online survey. Hierarchical cluster analysis identified clusters of savings barriers (basic needs, debt, child education costs, discretionary expenses, spousal unemployment and caring for sick dependents). Multinomial logistic regression was then used to predict cluster membership based on demographic and household characteristics, while binary logistic regression tested the relationship between cluster membership and life satisfaction. Findings Three clusters emerged: (1) Multi-dimensional Financial Constraints, typified by multiple overlapping pressures including basic needs, debt, education costs and unemployment; (2) Lifestyle-Debt Balance, driven predominantly by debt and discretionary expenses; and (3) Essential Expenses, centered on basic needs and children’s education. Men and older adults (≥ 47 years) were more likely to face multi-dimensional constraints, whereas nonmarried participants had elevated debt-related barriers. Larger households and more school-aged children predicted membership in the Essential Expenses cluster. Although the Lifestyle-Debt Balance group initially showed lower life satisfaction, this association disappeared after adjusting for demographics. Originality/value Unlike prior variable-centered studies that treat savings barriers as independent predictors, this study reveals how barriers co-occur as distinct profiles within a non-Western workforce. Each profile corresponds to a different set of life circumstances and requires a different policy response, demonstrating that typological knowledge enables more precise intervention design than average-effect findings alone.