A STUDY ON RETIREMENT PREPAREDNESS OF PRIVATE SECTOR EMPLOYEES

Abstract

According to Department of Economic and Social Affairs, United Nations, Malaysia will become an “aged nation” by 2030; where at least 14 percent of the population will be senior citizens, which also means they are above 60 year. This percentage is almost double the number of elderly in 2010 which was 7.8 percent of the 28 million population. Men are expected to live until the age of 72.5 and women until the age of 77.4 (Statistics Department of Malaysia, 2016). With the social and medical advancements, Malaysians are now living longer and the trend of these indicators is in line with the transition of age structure towards a looming baby Boomer crisis. With these information, it is clear that an individual is expected to live approximately between 12 to 20 years more after retiring at 60. This statement indicates people are living longer and will result in more plans and funds needed after retirement. Other than population aging, Joo and Grable (2005); Siti Zaharah and Foo (2013) stressed that, investment uncertainty, baby Boomer, and different retirement policies, unpredictable economic changes, increased cost of living and inflation have all heightened the significance of retirement preparedness.