Retirement Savings Investment Decisions: Evidence from Malaysia

17 Pages Posted: 29 Mar 2014

See all articles by Nurasyikin Jamaludin

Nurasyikin Jamaludin

School of Maritime Business and Management

Paul Gerrans

The University of Western Australia - UWA Business School

Date Written: March 28, 2014

Abstract

This paper investigates individual retirement savings investment choices of members of Malaysia’s Employer Provident Fund (EPF). The focus is on the option available to EPF members to invest part of their savings in approved unit trusts. A survey of EPF members allows a contrast with existing empirical evidence, largely drawn from developed countries. Three significant factors are identified: perceived importance of financial advisor; financial risk tolerance; and perceived plan design. Gender and marital status were also significant predictors of investing in the unit trusts, though religion and religious commitment were not significant. Several implications emerge from these findings. First, results highlight the important role of unit trust consultants in individuals’ choices which in turn highlights the important role of the governing body of consultants in ensuring appropriate advice is delivered to clients. The study is relevant to the EPF as policy maker, on the behaviour and attitudes of its members.

Keywords: Retirement savings, Investments, Investment Choice, Behavioral finance, Malaysia, Religion

JEL Classification: J26, D14, G23, G11, E21, G23

Suggested Citation

Jamaludin, Nurasyikin and Gerrans, Paul, Retirement Savings Investment Decisions: Evidence from Malaysia (March 28, 2014). Available at SSRN: https://ssrn.com/abstract=2399817 or http://dx.doi.org/10.2139/ssrn.2399817

Nurasyikin Jamaludin (Contact Author)

School of Maritime Business and Management ( email )

Kuala Terengganu, 21030
Malaysia

Paul Gerrans

The University of Western Australia - UWA Business School ( email )

Crawley, Western Australia 6009
Australia
61 8 64882910 (Phone)

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