An Empirical Analysis of The Impact of Money Attitudes on Retirement Savings Behaviour in Malaysia

Abstract

Saving for the future, especially for life after retirement, is a critical issue often debated. Early savings planning needs to be paid serious attention to ensure a good and comfortable life after retirement. However, behaviour towards savings for retirement is related to money attitude as it is how an individual behaves or reacts to money. Each person is believed to have different views and behaviours towards money and income, especially regarding retirement savings. As such, this study aims to investigate the effect of money attitudes on retirement savings behaviour. The survey approach was employed and conducted using questionnaires developed by adopting several studies and then randomly distributed via an online platform. A total of 160 respondents from 250 targeted respondents successfully answered the questionnaire and were used for further analysis. The collected sample suggested a successful response rate of 64%, more than enough to allow for population-wide generalisation of the findings. The analyses conducted were the pilot test for the initial screening of the items in the questionnaire, descriptive statistics, multicollinearity test, and the ordered Probit model. This study revealed mixed findings on the relationship between the type of money attitudes and retirement savings behaviour, indicating that people with different attitudes towards money will have different perceptions of savings for retirement.