The Awareness and Intention of Students to Invest in Private Retirement Scheme (PRS) in Malaysia

DOI

10.2991/978-2-38476-196-8_17How to use a DOI?

Keywords

Private Retirement Scheme; Financial Literacy; Retirement Planning

Abstract

The Private Retirement Scheme (PRS) was created in response to the Securities Commission Malaysia’s (SC) recommendations to the government in order to speed up the growth of Malaysia’s private pension business. PRS is a supplement to Malaysia’s current pension plans, such as the Employee Provident Funds (EPF) and Government Pension Scheme (GPS). Its goal is to increase the number of options available to all Malaysians, whether employed or selfemployed, for supplementing their retirement savings in a well-structured and monitored environment. Hence, this study aims to examine the relationship between retirement planning and the five independents’ variables, which are goal clarity, financial literacy, attitude towards retirement, saving behavior and retirement preparedness. The targeted respondent of this study is students because aims to raise the awareness of retirement planning. 200 sets of the responses from the respondents were collected and analyzed using SPSS software. The analysis includes descriptive analysis, reliability analysis, regression analysis and Pearson correlation analysis for the findings. The results showed that there is a significant relationship between financial literacy, attitude, saving behavior and retirement preparedness towards intention to invest in PRS. The only insignificant variable is goal clarity. This research will be benefits for the future researcher and the investment company to better understand the perception of youth towards the retirement planning in Malaysia. It is crucial that everyone understands that in- vesting is a marathon, not a sprint, so the Malaysian government should actively promote financial literacy among young people or even incorporate it into university curricula.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Hazlaili Hashim
AU  - Lee Weng Shin
AU  - Khairol Nizat Lajis
PY  - 2024
DA  - 2024/01/25
TI  - The Awareness and Intention of Students to Invest in Private Retirement Scheme (PRS) in Malaysia
BT  - Proceedings of the 4th International Conference on Communication, Language, Education and Social Sciences (CLESS 2023)
PB  - Atlantis Press
SP  - 180
EP  - 191
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-196-8_17
DO  - 10.2991/978-2-38476-196-8_17
ID  - Hashim2024
ER  -