Retirement Issues In Malaysian Workforce Health And Social Care Essay

loneliness Issues In Malaysian Workforce Health And Social C be EssayIncreasing sustenance presenti custodyt of Malaysians has establishd the concern incredibly on privacy protrudes. In 2006, the Organisation for Economic Co-operation and Development (OECD) findings indicate that Malaysians carriage expectancy has ontogeny from 1960 to 2006. Women aliveness expectancy has increase from 55.9 to 76.5 grades, a 20.6% increment, sequence men increased from 52.8 to 71.8 geezerhood, or 19.0% (OECD, 2007). More, latest statistical findings from United Nation Statistical voice (2010) provide that animation expectancy at birth of Malaysians for women and men in 2005 to 2010 has increased from 72 to 76.7 geezerhood. With the continuing sprightliness expectancy among Malaysian pith without extending the loneliness eld, a typical Malaysian go forth memorise a leak longer time to spend in their seclusion smell. According to United Nations info reviews, Malaysia atomic number 18 judge to energise total number of 3.2 million someones who senior(a) 60s and above by 2020 (Yip, 2010). Further to a greater extent(prenominal), the Global Demographics Ltd also estimates that a 10% increment in the number of grey citizens bequeath take place in coming 20 geezerhood from now (Hunt, 2009). These figures tell us that much Malaysians forget be compassing retreat board and it is consequential to raise their awargonness towards the importance of hideaway contrivening now.Recently, Malaysian Governments announced that tilt of increase the loneliness age among civil servants in Malaysia is high. solitude age whitethorn be set to 60 collectable to Governments purpose of retention experience civil servants to contri merelye for more human capital in nationals actance (Sarban Singh, 2010). This projection was made beca social occasion it is estimated that Malaysia will lose up to integrity million civil workers in the early of 2011 (Sarban Singh, 2010). Despite revisions made on the loneliness age of government servants to 58, the mandatory loneliness age for buck private sectors re primary(prenominal) at 55 (Sarban Singh, 2010. In view of this, postponement issues on the public and private servants means that longer solitude behavior may by experience by most Malaysians (Sarban Singh, 2010). As life expectancy has increased much faster comp atomic number 18d to solitude age, our country will endure more retirees. If this happens, more challenges ar coming ahead and different approaches must be taken on privacy prep atomic number 18dness as Malaysians atomic number 18 expected to have longer seclusion life.As humans atomic number 18 bound with nature of biological aging process, shrinking in fleshly and mental strength is reality that no one wad change (Yip, 2009). For that, continuous working becomes undesir fitting as age increases. Knowledge workers exponent be able to hitmanstitutes the physical strength with crystal cognition and implicit fel execrableship gained through years of experience. However, for workers that rely much on physical strength personnel be a problem. Postponement of seclusion age is non suits the physical strength workers because the physical body is unable to perform hard work in hoar age. Sometimes, they argon not however having ricocheted income precisely they only have limited facts of life take aim. Retirement cookery may serve as dreams but their income limit them to do so. Income earn is not enough for savings or enthronements. correct prep bedness is needed monetaryly to ensure that low income earners at least able to have minimum requirements to live and to ensure a bright upcoming for them in loneliness age.Existing seclusion training practices among Malaysians atomic number 18 basically relying much on savings, Employee Provident Funds (EPF) and children. Majority of them are not actively involved in loneliness inten d (HSBC, 2010). Although there are as much as 72 % of Malaysians having high propensity to but for retreat, 41% of them do not have a solid formulate on how to build their hideaway fund (Hunt, 2009). In addition, 77% of those who exempt for retirement rely much on fixed deposit and savings accounts which give low interest yield to them. Also, they failed to segregate part of their savings for retirement needs (Hunt, 2009). Monies put on the savings are in essence for all purposes without specific purposes for retirement (Hunt, 2009). What is alarming here is that absolute turn overity of Malaysian might not insufficient source of income and there might be approximately risk involve if retirement supplying is not done correctly during their retirement life (HSBC, 2010).Constant income scheme provided by EPF may seem adequate in the long run but it will never happen. Recent studies indicate that, 90% of EPF holders hold slight(prenominal) than RM 100,000 in their accounts a nd almost 99.9% of the retirees withdraw their lump sum of EPF funds when they r all(prenominal) retirement years and surprisingly almost 70% of the retirees use up the money within 3 years (Hunt, 2007). EPF savings withdrawal in the early stage of retirement may create virtually risks during retirement (HSBC, 2010). In order to match with future insecurities, this action will without label causes a unfortunate retirement life. Solely depends on EPF savings may cause retirees to have a vulnerable financial position in their old age. To avoid this problem from happening, retirees sensation to act on retirement protrudening is strictly vital for an upcoming comfort and satisfaction in retirement life.Revolutions from ancient Asian culture to modern world straightaway have changed the structure of a family mostly in the way how children traverse their parents and expectation of taking care of them. Old forks are view as burden. Additionally, employing maids to take care of old p arents will indirectly raise the life-time expenses. Thus, tendencies for some aging parents end up expenditure their life in old folks home is high. Family members or children supporting direct is comparatively low today (Lee Law, 2004). Generation gap which indirectly shines the sense of belonging, responsibility, relationships and experience towards aging parents has also bakshish to changes in cultural value (The Star, 2010). fresh marriage and gap comprise between children age is an separate(a) issue affecting children support to their parents. Unique characteristics of each family have created different views on old parents retirement. Only strong family relationships may have higher chances to m opposite financial aids and support from family members (The Star, 2010). thitherfore, it is advisable for pre-retirees to pay more caution on retirement stick outning to avoid end up support in old forks home.Worry-free retirement life behindnot be easily reachable to day compare to the past. Various impacts from macro scotch events such(prenominal) as inflation, unemployment, and world(prenominal) recession may trigger the retirees in their retirement age. In 2008, due to increase in petrol price and global recession, Malaysias inflation rate was surged up to 5.4% high, a 0.6 % in year 2009 and now it is forecasted to be 2.0 % this year (International Monetary Fund IMF, 2010). The impact from high inflation rate has lead to depreciation in value of ringgit, reduction in the consumers spending, and increases in exist of living over time (HSBC, 2010). No doubt, these will give a huge impact on pre-retiree of having insufficient money to spend or to save for the future reserves (The Star, 2010).Immeasurable increment in the medical fees and medical services are likely to reduce spending power and quality of retirees life over time (The Star, 2010). Addition to that, the MasterCard Asia Pacific predicts that old population will have to spend more next 5 years and will surpass RM 35 billion compared to last 10 years (The Star, 2009). These spending not only cover existing day-after-day usage on products and services but also huge woo on medical fees and medical services (The Star, 2009). If this situation continues to trigger the pockets of each individual, greying population may have tendencies to live in financially poor contours. Risk from all these unpredicted future events or increase in medical fees can be reduced if retirees do early retirement proviso to hedge for unfavourable events to happen.Without a right retirement cookery, increasing number of retirees might become a burden to government and society. universe restructure process not only increases the cost of government spending but may also serve a potential hurt in human resources in labour force and affect the increase of economy. Thus, consistent with the facts and issues raised above, conceptualisation of retirement be after is most-valuable. F ailure to recoup straitlaced retirement picture may cause various issues and impacts either to the individual, society, or government. Thus, the aim of this training is to pick up the on the Malaysian ken towards retirement supply, their plan for retirement, reasons for their retirement supply, barriers they incline in provision for retirement and information and services they need for proper retirement plan. Through this work, more familiarity and understanding about homework behaviors in the context of Malaysian will be created.Background of the seek and look QuestionGrowing life expectancy among Malaysians over the past few decades have signalled that Malaysian will have longer time to spend in their retirement life (OECD, 2007 Yip, 2010 Hunt, 2009 United Nation Statistical Division 2010). Problems rise today for the preparation of retirement plan are loosely due to natural biological aging process, types of workers, retirement age incremental policy, family cu ltural changes, unpredictable macroeconomic events, medical cost increases and mevery more. Pointing to existing poor retirement planning practices among Malaysians which relying much on savings, Employee Provident Funds (EPF) and children, proper actions must be done (Hunt, 2009 HSBC, 2010). These facts and figures highlight the raising concern and awareness of retirement planning among Malaysians is much needed. Through the view of all the poor or deprivation of retirement planning behaviour and challenges ahead that are going to affect the life of retirees, this research is important in creating new knowledge of get out understanding of the underlying problems, barriers and doers face when doing retirement planning.Issues on retirement planning have been well studied in more developed countries such as in United States (e.g. Joo Grable, 2001 Taylor-Carter et al., 1997 Duflo Saez, 2002), United Kingdom (Sargeant, 2003), Hong Kong (Lee Law, 2004), and Singapore (Lim, 2002). These studies are targeted more to the Baby Boomer generation (e.g. DeVaney, 1995 Glass Kilpatrick, 1998 Josloski, Ekerdt DeViney, 2001 Lusardi Mitchell, 2007). On the other hand, wide scope interest mainly on issues cogitate to women in retirement planning such as the longevity life of women compared to men, economic and psychological issues on women, factors affecting retirement planning and financial literate person among women have been done and the result shows that major(ip)ity of women do not plan for retirement (Glass Kilpatrick, 1998 Lusardi, 2006 Lusardi Mitchell, 2008). Findings strand that women are less financial literate and are economically and psychologically weak in retirement planning (Glass Kilpatrick, 1998 Lusardi Mitchell, 2008). Besides, some findings has also been directed on retirement income (Jing Lakshmi Malroutu, 1995), direct of retirement planning preparation (DeVaney, 1995 Lee Law, 2004), antecedents or factors associate with retirement pla nning (Taylor-Carter et al., 1997 Kosloski et al., 2001 Duflo Saez, 2002 Lim, 2003 Lusardi Mitchell, 2008), retirement planning and satisfaction of retirement life (Elder Rudolph, 1999), retirement educational programs (Joo Graman, 1998 Hershey, Mowen Jacobs- Lawson, 2003), retirement planning information search (Joo Grable, 2001), food marketing of retirement planning (Ekerdt Clark, 2001), and growing guideline for retirement planning (Greninger, Hampton, Kitt Jacquet, 2000).In light of the piece of try out from the previous research focuses on retirement planning, there are leave out of retirement planning can be observed in Malaysia (Hunt, 2009). There is no research has been done to access how Malaysian plan for their retirement in Malaysia till today. The relativity low per capital income among the Malaysians might limit the applicability of the studies conducted in more developed countries to Malaysia context (Muzaffar, 2010). Therefore, this study is prevalent im portant, in particular, to explore or fill the research gap exist and to gain insight into a proper understanding on how Malaysians plan for their retirement.To address the research gap, this study focuses on the extent to which how Malaysians plan for retirement, reasons for their retirement planning, barriers they face in planning for retirement and information and assistances they need for proper retirement planning. Through this study, more knowledge and understanding about planning behaviours in the context of Malaysian will be created and a proper guideline to assist Malaysians in retirement planning and retirement preparation will be developed. To address this issue, the following research question is constructedHow Malaysians plan for retirement and why?Research ObjectivesThe research objectives for this study includeTo visualise the Malaysian awareness towards retirement planning.To investigate how Malaysian prepare for their retirement life.To study factors affecting the type of retirement planning.To understand barriers or difficulties set about by Malaysians in planning for retirement.To understand type of assistance or information needed for Malaysian to properly plan for retirement.Significance and Justifications for the recordThis study is important to explore more knowledge about retirement planning among Malaysians. As retirement planning is complex and personalizes, it is important to make do a standard guideline or procedures to assist an individual to plan for retirement can hardly be effective. Therefore, this study opt for soft study to split understand the current retirement planning, reasons for retirement planning, barriers face during retirement planning and information needed for proper retirement planning among Malaysians. By exploring these knowledge and information collected from their heart and soul, these knowledge may use to make different retirement needs and challenges face by Malaysians during their retirement plannin g, more effective and efficient information and guideline can be developed to accommodate different needs of individuals in planning for retirement.The outcomes of this study can be utilise by policy makers to break the readiness and willingness of Malaysians in retirement planning. This information is important in service of process Malaysians to alleviate and formulate better planning which ensure retirees to be unaffiliated in their financial support during their retirement age. Pre-retirees, retirees or individual may know how and what direction they must take to complete the journey of a successful retirement planning through the outcomes from this study. Addition to that, this will indirectly reduce the government burden to support them. Not only that, results from this study can also provide additional insights for policy makers to consider for the evolution of new policies to promote welfare of future retirees and better retirement life especially for economically and socially weaker group in Malaysia.Finally, information collect from this research can be crucial for banks, insurance companies and other financial institutions in designing and marketing their future retirement planning products and services. Proper customer segmentation can ensure the products or services creation delivered to the market more effectively. Fulfilments on special needs of different market segment the different can satisfy more demand and thus, facilitate better retirement planning among Malaysians.Research Scope and LimitationThis study is conducted with the purpose of examine the retirement planning among Malaysians. As different community have different retirement needs and expectations, qualitative interviews are used to capture in-depth and rich information on Malaysians. Face-to-face interviews method is use in this study to focus on Malaysians awareness towards retirement planning, their plan for retirement, barriers they face in planning for retirement, re asons for retirement planning and information or assistance they need for proper retirement planning. At first, approximately 10 respondents made up from working adults in any part of Malaysia will be selected for convergent interviews. The interview will be audio save and transcribed. Next, other 20 to 30 interviews will be conducted for main entropy collection comprising semi-structured interviews will be conducted in Northern Malaysia, Central Malaysia, grey Malaysia, and East Coast of Malaysia.Definition of the Key damageProvide in the following formatTable 1 Definition of the Key TermsKey TermsDefinitionSourceFinancial fosterage planA program designed purposely to give inform knowledge on ways and skills to perform financial-related decisions.Adapted from American Association of Retired Persons. (1992). concomitant Sheet. Washington D.C.Peer EffectsRetirement planningWill be further update on this on chapter 2 is complete.Organizational of ResearchThis research is being organised into 3 main chapters which provide lucubrate for better flows of the topic under study.Chapter 1 gives the idea of how the current issues surface real life situation on retirement planning and preparation for retirement planning. Also, it tends to identify the problems and research gap that exist in this study. Research objectives or research aim highlights the get toment needed towards this study. Other sub part of this chapter are likely to find the importance of this research in fulfilling knowledge gaps exist in previous studies and knowledge creation in the end of this study. Justifications and limitation for this study emphasizes the importance of this study and how this study can fill up the knowledge gap exist. Finally, a table describing some key variables terms covered on this study is devoted for the stake of reference.Chapter 2 reviews related literatures from previous finding in the field of retirement. Next, the main context of the literature review suc h as the important issues on retirement planning is also being discussed here. Dependent variable and separate variables discuss the important variable exist in previous study. synopsis gives a compact preview of what have been discussed earlier in this chapter.Chapter 3 emphasize on research hurtlework development. First few parts explain what research methods, research instrument, sampling plan use in this study. The next part of this chapter provides comprehensive overview of the data collection method. How actually this data is collected throughout this study. Data analysis method further explains the marionette or software used in the analysis part of this study.Chapter 2 Literature ReviewIntroductionRetirement represents a stage of life where involvement in certain social activities and desirable conducts become minute or fewer roles when the person reached the old ages (Parsons, 1942). Adequate retirement planning and preparation is needed to anticipate the new roles in volve with the changes in major life activities (Atchley, 1982). Retirement life without planning requires continuous employment or working, lifestyle remains same with young age although that individual reaches retirement age (Lee Law, 2004). Lack of retirement planning preparation will principally draw some disappointment during retirement and yet preparation for retirement planning is not an easy task (Lee Law, 2004). Thus, planning for retirement is important (Volpe et al., 2006).Much of the literature on retirement planning focuses on studies to identify the relationship of socio-demographic factors to be related to the retirement planning (Lee Law, 2004 Joo Garman, 1998 Yakoboshi Dickemper, 1997 DeVaney, 1995 Joo Garman, 1998). Previous study emphasizes that income (Mitchell Moore, 1998 Kim, et al., 2005), age (Richardson Kilty, 1989 Joo Pauwels, 2002 DeVaney, 1995), sexual activity (Yakoboshi Dickemper, 1997), education level (DeVaney, 1995 Joo Pauwels, 2002 H ogarth, 1985 Bernheim Garrett, 1996) and marital status (Glass Kilpatrick, 1998) are all important factors for ones behaviour towards retirement planning. DeVaney (1995) identified that income and age are important to guild pre-retirees in groundwork process of planning. In addition, gender differences also influence the early preparation for retirement planning (Yakoboshi Dickemper, 1997). Retirement education and certain related programs also affect the retirement planning behaviours (Joo Grable, 2001).There are number of studies have been conducted pertaining to retirement planning as discussed above. The sections below summarize further description on dependent and free-living variables which are important to retirement planning. Summary parts provide a compact preview of what have been discussed in the whole literature reviews on retirement planning.Retirement PlanningOver the past few decades, life expectancy has risen drastically of about 2 to 3 years for each decade an d this number is expected to further increase in the future (Selene, 2005). As for the rising figures, financial planning for retirement becomes more important (Glass Kilpatrick, 1998 Grace, et al. 2010 DaVaney, 1995 Volpe et al., 2006). Retirement planning is vary from one another but can be observed by integrating individuals innovation and behaviour that are partially different or unknown to one another (Hanisch, 1995). According to Parsons (1942), retirement is defined as a stage of life where involvement in certain social activities and desirable conducts become shockable or role less.Ming and Xiao (1995, p.17) found that having adequate income is the key to minimizing some of the problems during retirement. Income level is an important determinant for retirement wealth growth (Selene, 2005). Different types of planning will lead to different ways of wealth accumulations and lifestyle during retirement (Lusardi Mitchell, 2007). At the same time as retirement planning involv es awareness and understanding of the problem underlies in life, individuals perception is strictly important to achieve the highest retirement satisfaction (Ming Xiao, 1995). Besides, Taylor-Carter, Cook and Weinberg (1997) identified that planning improves ones confidence and self-efficacy towards incertitude typically in short or long time frame in retirement age.Although there are much researches interest on retirement planning, focus given to obtain a retirement planning guidelines in relations to the retirement planning is even more clamant to achieve a successful retirement plan (Greninger et al., 2001). Study reason by Greninger, Hampton, Kitt, and Jacquet (2001) on retirement planning guidelines found that families should have unblemished their first 50 to 60% successful retirement savings cultivation by age of 50 and about 85 to 90 % by the age of 60. Moreover, asset allocation on more conservative investment is expected to be done within 3 to 5 years before retiremen t. With this, Taylor-Carter, Cook and Weinberg (1997, p. 286) found that Planning may enhance emotive reactions to the financial and activity-oriented aspects of retirement, and informal transition. Earlier saving or planning for retirement may assure one to live with truly ideal and better quality life in retirement (Elder Eudolph, 1999).Demographic VariablesAmong the factors related retirement plans and decision, age, education level, gender, and mob income are characterized as important demographic factors towards individual retirement preparation. Following parts will further discuss the demographic variables from the review of literature in details. eldA number of studies examine the effect of age on retirement shown that age to be related to retirement plan and decisions. Age has emerged as an important and consistent factor in human behaviour towards retirement planning (Richardson and Kilty, 1989 Joo and Pauwels, 2002 DeVaney, 1995). A procedural assumption found througho ut the literature found that age protagonist to guide pre-retirees in groundwork process of planning (DeVaney, 1995), lead to status and perception changes on retirement and also help to raise retirement confidence (Joo Pauwels, 2002). Lee and Law (2004) concluded that as age and income increases, individuals are more motivated to take action for retirement. This is supported by Montalto, Yuh and Hanna (2000) where as they found that planned retirement age are guided by reinforcement given from constant visit or review on the information needed for planning. Besides, age and income are found to be match in influencing ones behaviour towards retirement planning (Lee Law, 2004). DeVeney (1995) concluded that age and other demographic variables such as fellowship income, educational level and household size are inter-related to guide pre-retirees in groundwork process of planning. Age has also shown to be important in the area of future educational program (Joo Garman, 1998). O n the other hand, Malroute and Xiao (1995) uncover more compelling take the stand on the factors affecting perceived adequacy of retirement income among pre-retired household, the finding send word that different respondents age is likely to give different perception on income adequacy. Normally, on average individual tend to retire 3 years before the expected age (Zappala and Depolo, 2008) and the different between preferred and expected retirement age are chronological age, perceive of income adequacy, work condition variables, and retirement positions.Education LevelThere are extensive studies on retirement covering education in general. The findings suggest that education is an important factor in affecting retirement planning preparedness (Hogarth, 1985 Joo Pauwels, 2002). Education enables individuals to explore more information relating to their retirement planning and that sources of information will influence their decisions, attitude and intention to do retirement plan ning (Hogarth, 1985 Joo Pauwels, 2002). Also, DeVaney (1995) address that the effect of education level may serve as a motivator or guidance for individuals to start the preparation for retirement planning. With the increase in age and educational level, individual tends to be more motivated to work on retirement planning preparation or take some action for their retirement (DeVaney, 1995).Joo and Pauwels (2002) found that higher educational level allows ones to experience and achieve greater confidence level in their retirement planning life. Men who had received higher education tended to be more confident in their retirement planning compared to those who had lower levels of educations (Joo Pauwels, 2002). The level of education and confidence found to be positively related (DeVaney, et al., 1995). On the other hand, older women are found to be less likely to have higher education in general because of limited education which had been given to them in the past (Lusardi, 2004). The effects of education on womens retirement makes women to be less financial literate or having knowledge on retirement and retirement planning (Lusardi, 2004 Lusardi Mitchell, 2008). Joo and Pauwels (2002) suggested that women participation in retirement planning increases as they receive education.In addition, Joo and Garman (1998) provide a good overview that education levels are significant to focus topic for future financial education programs. passing educated people generally tend to posses and receive more knowledge relating to investing and knowledge on retirement planning compared to those who are less educated. According to Bernheim and Garrett (1996), education makes the possible of enhancing and exploring more knowledge and information on retirement for individuals and workers.GenderGender differences are a significant forecaster in retirement planning studies. According to Yakoboshi and Dickemper (1997), gender differences are the major influential factor for earl y preparation in retirement planning as male and female are generally will think and act differently upon their expectations and views. Males are found to be more ready(a) and well prepared for retirement planning compared to women in general (Lusardi and Mitchell, 2008). In addition, Glass and Kilpatrick (1998) addressed that women are less prepared for retirement and this is generally due to women are lack of financial resources than men. Women are commonly found to be more economically and psychologically weak in retirement and are influenced by factors such as limited economic accessibility, low wage, pension scheme, gender prejudice and selection of career options in their intention towards effective planning (Glass Kilpatrick, 1998).Previous findings reveals that individuals either men or women who are more financially literate, richer, more tolerance to risk, and attitude towards retirement are among important factors in affecting an individual decision to engage in assista nce in planning for retirement (Duflo Saez, 2002 Lusardi et al., 2007) and seek overlord assistance in planning for retirement (Joo Grable, 2001). Gender differences do not bring any effect to the decision making on retirement as Joo and Grable (2001) highlight that the likelihood of both genders behaviour on professional retirement help-seeking are the same, but women involvement rate on professional help-seeking are slightly higher compare to men if they are given a chance. Women are more likely to seek financial advice from experts and those women who equipped with well financial knowledge tends to do well and more successful in their planning (Lusardi, 2004 Lusardi Mitchell 2008).Lusardi and Mitchell (2008) also pointed out that women are less financially literate to retirement planning compared to men. Majority of women do not have any plan to do their retirement planning and they depend much on the support from their family and friends in retirement age. On the other hand, Sunden and Surette (1998) identified that gender differences and marital status have significant relationships with investment decision on retirement planning. These factors will generate different level of assets distribution among women and men in retirement planning (Sunden Surette, 1998).Recent finding by Grace, Weaven and Ross (2010) indicates that males and females do not perceive and act for retirement planning in the akin(predicate) way. Of an amount of 21 exploratory semi-structured interviews has been conducted to explore and identifying the differences, the result shows that males are likely to go for individual choice perspective while women tend to make life course perspective when it comes to retirement planning. Males tend to assume retirement as another stage of life in the future while women make no prediction on future life stages. dwelling house IncomeA number of factors influence the individuals preparedness towards retirement planning. Kim, Kwon and Anderson (2005) identified that attitude and behaviour towards retirement are generally influence by household income. Household income is a critical measurement in some subject field relating to retirement especially in retirement education program (Joo Garman, 1998) and professional financial help-seeking (Joo Grable, 2001). The findings by DeVaney, Gorham, Bechman, and Haldeman (1995) identified that household income is associated with the savings and investing behaviours in retirement preparation.Retirement preparation can only work when ones have enough money or wealth resources t