Financial Planning for Retirement: A Proposed Conceptual Framework

Abstract

Retirement is a significant life event that will affect a person's finances, time management, social interactions, and physical and emotional well-being. Since most people place a high priority on retirement planning, building a portfolio that can ensure that person will not run out of resources during retirement is the major goal of retirement planning. People who plan for retirement will consciously decide to forgo some pleasure today by not spending all of their money now to have a better future. However, some unstable jobs, such as gig workers, face serious problems that affect their retirement. Employer misplacement of gig workers, a lack of employer-sponsored pension plans, uncertain income, and inadequate financial advice may make gig workers challenging and anxious to prepare their finances for retirement. Thus, it is crucial to investigate the determinants that influence the financial planning for retirement among gig workers in Malaysia. Since the literature examining the determinants of financial planning for retirement among gig workers in Malaysia is relatively scarce, therefore, this study aims to fill this gap. A systematic review of reviews was undertaken to answer the research question. Electronic databases were searched from January 2018 to December 2022 using advanced searching techniques such as the Boolean operator, phrase searching, truncation, wild card, and field code functions separately or by combining these searching techniques into a full searching string based on the main and enriched keywords: ("FINANC*" OR "RETIRE*") AND ( "PLAN*"). This framework is derived from the Interdisciplinary Financial Planning Model and the Theory of Planned Behaviour, as well as reviews of empirical studies. Findings of these activities reveal that various variables have been compiled as a component in the proposed framework, which are financial literacy, retirement goals, future time perspective, social influence, and saving attitude as a mediator.