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Islamic Development Management pp 317–328Cite as

The Applicability of the Theory of Reasoned Action in Predicting the Intention to Save for Retirement

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Abstract

The unprecedented increase in life expectancy, as well as demographic changes over the last couple of decades, will intensify the need for adequate post-retirement saving. This paper aims to examine the factors that influence the intention to save for retirement. The theory of reasoned action (TRA) has been extended by including two additional variables––personal financial planning and religiosity to predict the intention to save for retirement. This cross-sectional study has collected and analysed data obtained from a self-administered questionnaire survey of 824 employees in Malaysia, while the SPSS package was used to analyse the data. The results suggest that TRA strongly predicts the intention to save for retirement. The study also found that personal financial planning is a significant predictor of retirement saving intention, while religiosity does not influence the intention for retirement planning saving and planning among employees in Malaysia. This study will contribute to the current literature by providing insights on retirement saving behaviour among Malaysian employees.

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Authors and Affiliations

  1. Labuan Faculty of International Finance, Universiti Malaysia Sabah Labuan International Campus, Labuan FT, 87000, Malaysia

    Haneffa Muchlis Gazali

  2. IIUM Institute of Islamic Banking and Finance, IIUM, Kuala Lumpur, Malaysia

    Syed Musa Syed Jaafar Alhabshi & Adewale Abideen Adeyemi

Authors
  1. Haneffa Muchlis Gazali
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  2. Syed Musa Syed Jaafar Alhabshi
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  3. Adewale Abideen Adeyemi
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Correspondence to Haneffa Muchlis Gazali .

Editor information

Editors and Affiliations

  1. Department of Economics, Universiti Teknologi MARA, Bedong, Kedah, Malaysia

    Noor Zahirah Mohd Sidek

  2. Research and Industrial Linkages Division, Universiti Teknologi MARA, Bedong, Kedah, Malaysia

    Roshima Said

  3. ISDEV, Universiti Sains Malaysia, George Town, Penang, Malaysia

    Wan Norhaniza Wan Hasan

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Gazali, H.M., Syed Jaafar Alhabshi, S.M., Adeyemi, A.A. (2019). The Applicability of the Theory of Reasoned Action in Predicting the Intention to Save for Retirement. In: Sidek, N., Said, R., Hasan, W. (eds) Islamic Development Management. Springer, Singapore. https://doi.org/10.1007/978-981-13-7584-2_24

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