Employees’ Retirement Saving Behaviour During The Covid-19 Pandemic in Malaysia

Retirement planning has recently been prioritized by employees to safeguard a comfortable retired life. The objectives of the study were to assess whether income level, economic condition, saving behaviour and retirement goal clarity affect employees’ retirement saving behaviour during the COVID-19 pandemic in Malaysia. Life-cycle theories of savings and investing and theories of mental accounting are applied to determine the factors affecting employees’ retirement saving behaviour during the COVID-19 pandemic in Malaysia. Mix methods research design is conducted, where the quantitative survey is supplemented by a qualitative interview. The findings provide essential insights to governments in both developing and developed countries on the financial education for children starting young to ensure successful financial retirement planning during downturn and pandemic. This study shows that income level, economic condition, saving behaviour and retirement goal clarity are significant determinants of retirement saving behaviour, hence it has contributed to the conceptual model of retirement saving behaviour which enables individuals to plan their retirement well.