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The Effects of Financial Attitudes, Financial Literacy and Health Literacy on Sustainable Financial Retirement Planning: The Moderating Role of the Financial Advisor

Author

Listed:
  • Wan Mashumi Wan Mustafa

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Perlis 02600, Malaysia)

  • Md. Aminul Islam

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Perlis 02600, Malaysia
    Faculty of Business and Entrepreneurship, Daffodil International University, Dhaka 1216, Bangladesh
    Universitas Ubudiyyah Indonesia, Banda Aceh 23231, Indonesia
    School of Business Administration, East Delta University, Chattogram 4209, Bangladesh)

  • Muhammad Asyraf

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Perlis 02600, Malaysia)

  • Md. Sharif Hassan

    (Faculty of Business and Communication, Universiti Malaysia Perlis, Perlis 02600, Malaysia
    Department of Business Administration, University of Asia Pacific, Dhaka 1205, Bangladesh)

  • Pradip Royhan

    (Asia Pacific International College, Parramatta NSW 2150, Australia)

  • Shafiqur Rahman

    (Department of Business Administration, International Open University, Doha 2713, Qatar)

Abstract

Financial planning for retirement is essential to ensure that people have enough money to live the lifestyle they desire when they retire. Self-employed business owners in developed countries widely do financial retirement planning. However, in Malaysia, the percentage of self-employed individuals concerned about financial retirement planning is lower than in other countries. This study aims to identify the relationship between the financial attitude, financial literacy and health literacy of self-employed individuals toward sustainable financial retirement planning in Malaysia and find out the moderating effect of the role of financial advisors. The study utilized structural equation modelling. Data were collected through a survey questionnaire and analyzed using SMART PLS 3.3. The total sample size was 416 self-employed individuals from the northern Malaysian region. The findings revealed that financial attitude and financial literacy significantly impact retirement planning. Moreover, the role of financial advisors moderates the relationship between financial attitude–financial retirement planning and financial literacy–financial retirement planning. The result of the study will fulfil the needs of self-employed individuals to plan their retirement by including the financial planning determinants needed for a well-planned retirement.

Suggested Citation

  • Wan Mashumi Wan Mustafa & Md. Aminul Islam & Muhammad Asyraf & Md. Sharif Hassan & Pradip Royhan & Shafiqur Rahman, 2023. "The Effects of Financial Attitudes, Financial Literacy and Health Literacy on Sustainable Financial Retirement Planning: The Moderating Role of the Financial Advisor," Sustainability, MDPI, vol. 15(3), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:2677-:d:1054898
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    References listed on IDEAS

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    2. Long She & Ratneswary Rasiah & Marc Arul Weissmann & Harpaljit Kaur, 2024. "Using the Theory of Planned Behaviour to Explore Predictors of Financial Behaviour Among Working Adults in Malaysia," FIIB Business Review, , vol. 13(1), pages 118-135, January.
    3. Luís Almeida & João Chanoca & Fernando Tavares, 2024. "Financial Literacy: A Case Study for Portugal," JRFM, MDPI, vol. 17(5), pages 1-18, May.
    4. Xie, Qian & Ke, Haie & Peng, Juan, 2024. "Impacts of Financial Literacy on Elderly Households’ Consumption," Finance Research Letters, Elsevier, vol. 62(PA).

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