American Journal of Applied Sciences

Exploring Factors Influencing Financial Planning After Retirement: Structural Equation Modeling Approach

Md. Abdul Jalil, Dzuljastri Abdul Razak and S.M. Ferdous Azam

DOI : 10.3844/ajassp.2013.270.279

American Journal of Applied Sciences

Volume 10, Issue 3

Pages 270-279


The study explores the critical factors that influence financial planning after retirement among Malaysians, an area which has somewhat been largely overlooked by the extant literature. The study has used a quantitative method to survey a sample of 170 Malaysian citizens, from various places in the Klang Valley area. Exploratory factor analysis, confirmatory factor analysis and structural equation modeling were used to analyze the data. The results suggest that the paths are interrelated to the casual processes significantly. Furthermore, individual’s income or monthly salary is found to be the most important factor influencing financial planning, followed by attitude and culture. The results are mainly favourable to academics and practitioners in Malaysia by contributing an understanding into critical factors that influence people to make financial plan before their retirement. The study provides implications of the findings in the concluding section.


© 2013 Md. Abdul Jalil, Dzuljastri Abdul Razak and S.M. Ferdous Azam. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.