scholarly journals Retirement Planning Behaviour of Working Individuals and Legal Proposition for New Pension System in Malaysia

2016 ◽  
Vol 9 (4) ◽  
pp. 43 ◽  
Author(s):  
Kamal Halili Hassan ◽  
Rohani Abdul Rahim ◽  
Fariza Ahmad ◽  
Tengku Noor Azira Tengku Zainuddin ◽  
Rooshida Rahim Merican ◽  
...  
Keyword(s):  
Private Sector ◽  
Financial Literacy ◽  
Pension System ◽  
Retirement Planning ◽  
Private Pension ◽  
Pension Scheme ◽  
Age Group ◽  
Goal Clarity ◽  
Voluntary Basis ◽  
Private Pension System

<p class="MsoNormal" style="text-align: justify;">Problems have been identified pertaining to retirement scheme of the private sector employees in Malaysia where there is no legislated pension system in force. As a result of that, pension scheme and savings are more of a voluntary basis; although the principle is good but in practice many retirees suffer financially during their retirement. The objectives of this study are to examine factors contributing to individual’s retirement planning behavior and the private pension system in the private sector in Malaysia. Retirement planning behaviour in this study was measured with series of questions on behaviour about retirement planning. A total of 500 working individuals from private sectors in the age group of 40 years and above had participated in this study. The results identified several significant variables in the prediction of retirement planning among working individuals in Malaysia, including individual who had higher levels of education, higher levels of income, financial literacy, retirement goal clarity and attitude towards retirement. There is a correlation between retirement planning behavior and saving for old aged. As a response to the result collected from the survey, a legal proposition is put forward to address issues of pension during retirement among private sector’s employees.</p>

Financial literacy, trust and retirement planning

2015 ◽  
Vol 16 (1) ◽  
pp. 43-64 ◽  
Author(s):  
ORNELLA RICCI ◽  
MASSIMO CARATELLI
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Private Pension ◽  
Empirical Literature ◽  
Pension Scheme ◽  
Severance Pay ◽  
Endogenous Regressors ◽  
Financial Contract ◽  
The Impact

AbstractWe study the complex relationship between financial literacy, retirement planning and trust in financial institutions, using data from the 2010 Bank of Italy Survey on Household Income and Wealth. The impact of financial literacy on retirement planning is a well-established issue in the existing empirical literature; our main contribution is proving that financial knowledge not only impacts retirement planning, but also the decisions of entering a private pension scheme (or devoting the severance pay to a private pension scheme). Adding the consideration of trust poses serious econometric concerns, since both financial literacy and trust in financial institutions are likely to be endogenous and the presence of two endogenous regressors renders the identification of causality very difficult. Our solution is to keep only financial literacy as endogenous and include in our models an exogenous regional indicator of social capital (similar to the one adopted by Guisoet al., 2004), as a proxy for the level of trust between the counterparts of a financial contract in each geographical area. Our main findings show that trust has a positive influence on both the decisions to enter a private pension scheme or to devote the severance pay to a private pension scheme.

scholarly journals 8.8. PECULIARITIES OF BUILDING PENSION SYSTEMS IN DEVELOPING COUNTRIES: AN EXAMPLE OF MALAYSIA

2020 ◽  
Author(s):  
С.В. Фрумина
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Military Personnel ◽  
Pension System ◽  
Private Pension ◽  
Pension Scheme ◽  
Public Servants ◽  
Pension Systems ◽  
Retirement Accounts ◽  
Pension Schemes

В статье представлена характеристика пенсионной системы Малайзии как одной из развивающихся стран, столкнувшихся с демографическими проблемами. Автор рассматривает устоявшиеся в Малайзии пенсионные схемы: пенсионную схему для государственных служащих, для работников частного сектора, для военнослужащих, для самозанятых граждан и добровольные частные пенсионные схемы. Акцент делается на формировании пенсионных счетов. The article describes the pension system of Malaysia, as one of the developing countries faced with demographic problems. The author considers pension schemes established in Malaysia: a pension scheme for public servants, for private sector employees, for military personnel, for self-employed citizens and voluntary private pension schemes. The emphasis is on the formation of retirement accounts.

scholarly journals Chile's private pension system at 35: impact and lessons

2016 ◽  
Vol 32 (1) ◽  
pp. 57-73 ◽  
Author(s):  
Silvia Borzutzky ◽  
Mark Hyde
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Transition To Democracy ◽  
The State ◽  
Private Pension ◽  
Pension Scheme ◽  
Defined Contribution ◽  
Funded Pensions ◽  
Massive Accumulation ◽  
Private Pension System

This paper provides an analysis of Chile's 35 year experience with defined contribution, fully funded pensions and argues that this pension approach should not be emulated by countries seeking to reduce the state role in the provision of pensions. The paper shows that 35 years of privatized pensions have led to a massive accumulation and concentration of capital and profits in the hands of the pension fund administrators and insufficient and unequal pensions for the retirees. This legacy of the Pinochet dictatorship has experienced marginal reforms after the transition to democracy. However, those reforms have not altered the system's structure and have augmented the fiscal role as the state attempts to repair some the most damaging outcomes of the private pension scheme.

Financial literacy and retirement planning in Sweden

2011 ◽  
Vol 10 (4) ◽  
pp. 585-598 ◽  
Author(s):  
JOHAN ALMENBERG ◽  
JENNY SÄVE-SÖDERBERGH
Keyword(s):  
Educational Attainment ◽  
Low Income ◽  
Financial Literacy ◽  
Pension System ◽  
Retirement Planning ◽  
Strongly Correlated ◽  
Consumer Survey ◽  
Swedish Population ◽  
Risk Diversification

AbstractWe use data from the Swedish Financial Supervisory 2010 consumer survey to look at levels of financial literacy and retirement planning in the Swedish population. The results indicate that many adults have low financial literacy. In general, financial literacy levels are lower among the young, the old, women and those with low income or low educational attainment. People who report having tried to plan for retirement have higher levels of financial literacy. In particular, an understanding of risk diversification is strongly correlated with planning for retirement. We relate our findings to features of the Swedish pension system.

Capitalist Crisis and Pension Insecurity

2017 ◽  
Author(s):  
Michael A. McCarthy
Keyword(s):  
Crisis Management ◽  
Pension System ◽  
The United States ◽  
Private Pension ◽  
Historical Evolution ◽  
State Change ◽  
Conceptual Approach ◽  
Unites States ◽  
The New Deal ◽  
Private Pension System

This chapter develops the conceptual approach used to explain pension marketization. It first discusses how Americans, relative to their counterparts in other advanced capitalist countries, have had their retirement income more greatly exposed to capitalist market processes and pressures. It then reviews the historical evolution of private pension system in the United States since the New Deal. It draws on crisis management theories to understand the development of pensions in the Unites States. Next, it presents three arguments about how the pension system was changed and oriented toward the market. These arguments serve two functions. First, taken together, they explain each of the episodes of change in the private pension system. Second, they also form the conceptual framework for thinking about the structural contingency of welfare state change.

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