Factors affecting the intention of generation y in malaysia to invest for retirement

Abstract

Retirement planning is an essential factor in ensuring a comfortable post retirement period. This is because by sole reliance of employer provident fund (EPF) itself could not sus-tain desired lifestyle and increasing of living cost. This retirement planning is a cyclical multistep process that review periodically and require planning as early as possible to take advantage of com-pound interest. Therefore, this paper studies the role of certain behavioural trait and psychological biases in influencing the intention of Generation Y to invest for retirement. Through this study helps Generation Y and parties involved recognize the importance of early retirement preparation through investment. Design/ Methodology/Approach: A bipolar Likert scales survey questionnaire was distributed physically and online to 240 students and workers around 20-39 years old in Klang Valley area. The questionnaire itself included demographic profile of respondent and variable related questions. Then, data analysis including multiple regression test assessed to determine the extent of Subjective Norms, Attitude, Pension Knowledge and Trust Towards Online Financial Service in influencing Generation Y in investing for retirement fund. Finding / Practical Implication: Results show positive correlation between all variables stud-ied in influencing the Generation Y to invest for retirement. However, result also shows least impact of trust towards online financial service to intention of Generation Y invest for retirement. Hence, researchers and organizations should take in account of improvement of this factor to assure Generation Y in actively invest for retirement preparation.