1. Introduction

Retirement is an important life event that every working individual experiences. After many years in a dedicated job, retirement is when a person exits the workforce. Retirement is the beginning of a new stage of life. Even if people want to work into their later years, age discrimination, mandated retirement, declining productivity, bad health and structural changes in labor compel them to abandon their jobs. According to a report by Hongkong and Shangai Banking Corporation, the four important phases for a well-planned retirement are listed below. Firstly, one should know their retirement requirements while employed. People must know how much they will require to support themselves in retirement. Secondly, priority should be placed on early savings. A certain amount of funds is required to assist the elderly after retirement. Thirdly, people should understand how key life events may affect their finances when preparing for retirement. People with low savings or assets will experience difficulties when faced with unforeseen expenses after retirement. Fourthly, people who want to retire with less debt should be able to make plans. Financial retirement planning is more necessary for people with lower salaries than for those with higher incomes.

Planning is essential in the 21st century since many employees will also need to rely on their savings, unlike past generations of workers who relied solely on pensions. Therefore, one can resolve their money problems through planning. According to Sutherland, financial planning is taking the money you have earned from your work and ensuring you put it to good use in a way that reflects your aspirations and values. Financial planning enables people to examine their financial objectives and take the required actions to update or achieve them. Finally, retiring individuals are urged to seek assistance from financial professionals who can assist them by giving them advice on the important things they should do before they retire.

The Minimum Retirement Age Act 2012 (Act 753) specifies that the minimum retirement age in Malaysia is currently 60. The elderly population in Malaysia is expected to increase steadily from 5.7% in 1990 to 6.3% in 2000 and 9.8% in 2020. According to Nilsson et al., 38% of retirees said they “want to” work until they are 65 years old or older, and 54% of retirees said they still “can” work. One of the main reasons people continue to work after retirement is due to economic issues, including personal wealth and retirement incentives. Children’s education is one of the main reasons Malaysians have greater debt levels.

Studies were conducted in Malaysia to determine the factors influencing elderly labor participation. According to Ling et al., high monthly expenses, particularly for low-income workers, were determined to be one of the contributing reasons to retirees’ labor market participation. They encountered this difficulty because of their lack of financial knowledge. These people need to learn how to prepare their finances for retirement, which can only be done with adequate exposure to financial literacy. According to the Manulife Investor Sentiment Index (MISI) poll, Malaysians lack financial planning even though saving for retirement is their top goal; their current debt-to-income ratio is 68%, the highest ratio among the eight Malaysian markets. Over the past few years, the globalization era has led to higher living standards and longer life expectancies. Due to lower death rates in most countries, the number of people over 60 is increasing daily. Due to societal and economic change, there will be more senior people than children in the future and more elderly workers. When people express their worries about not having enough retirement resources to support rising living expenses and expensive healthcare services in old age, incorrect retirement planning is frequently brought to light in Malaysia. In addition, dependency has increased dramatically from 1975 to 2015. As a result, it is now essential to address concerns relating to retirees and their financial retirement planning. This study aims to determine the variables that affect self-employed Malaysians regarding financial retirement planning. By giving a greater understanding of financial retirement planning and the attempts to preserve their lifestyle after retirement, this research will benefit Malaysians who work for themselves.

The rest of the paper is followed by a literature review, hypotheses development, methodology, findings, analysis, and conclusion.

2. Literature Review and Hypotheses Development

Planning for retirement is critical to ensure that individuals can have sufficient savings to live the lifestyle they want upon retirement. A single individual firstly does planning. A person with a good personal financial plan may manage their money sensibly. However, it was shown that younger working generations feel burdened by retirement planning because they must make long-term financial plans. In 2019, out of 14.8 million employed persons, 25.08% (3.71 million) were self-employed workers in Malaysia, according to the World Bank’s collection of development indicators. According to the Employees Provident Fund (EPF), 62% of Malaysia’s 22 million working-age citizens work for themselves and are not officially covered by social safety. More than 70% of Malaysians, according to EPF, do not have a rainy-day fund for unexpected needs. Due to poor levels of financial literacy among Malaysians, retirement planning is not well known. To guarantee that people have long-term retirement planning, it is important to encourage retirement planning. According to a preliminary study, successful retirement positively correlates with retirement planning, positive attitudes and success. Previous research underlined the significance of financial retirement planning and examined the factors that impact financial retirement planning. The highlight of being good at planning for retirement is to live a desired lifestyle upon retirement without facing any financial constraints.

The life-cycle saving and investing theory was used to better understand how people make spending and saving decisions based on their life expectancy, income, retirement objectives and intergenerational transfer motives. This is the most prevalent argument because there is a need for basic financial literacy to make effective financial planning decisions, as individuals are expected to take increasing responsibility for their financial affairs. The life-cycle hypothesis investigates workers’ retirement and savings patterns. Because the life-cycle theory implies that individuals aim to maximize the utility derived from their entire life-cycle consumption, consumption must be continuous despite income discontinuities, and saving is needed to finance consumption after retirement. The life cycle hypothesis (LCH) emphasizes maximizing utility across one’s lifetime. As a result, it is anticipated that working people will save money while earning it to be spent in retirement.

2.1. Financial Attitude

Financial attitudes encompass a person’s values and opinions about various personal financial topics, such as whether they think saving money is important. Both positive and negative attitudes affect a person’s financial literacy. People will not be interested in learning about financial literacy, for example, if they have bad attitudes regarding saving money for the future. A survey revealed a constant favorable association between financial attitude and financial planning. People who practice good money management will have better financial circumstances, including higher savings and increased financial security for themselves and their families. Financial attitude is a vital formation that can enhance the savings intention of an individual as well as sustainable financial planning. Hassan et al. conducted a study in Malaysia and found that financial attitude positively relates to financial retirement planning. This study will propose the following hypothesis based on the above discussion:

H1: Financial attitude has a significant influence on financial retirement planning.

2.2. Financial Literacy

Financial literacy is described as possessing the necessary information and abilities to confidently make financial decisions and manage financial resources. Developing financial knowledge and skills and understanding the relationship between them are two parts of financial literacy that are based on people’s education or experience with financial concepts and goods. Financially literate people would know better than to spend more than their monthly income, which would leave them with ample savings when their income declines, especially after retirement. Moure examined the relationship between financial literacy and retirement planning in Chile and found a significant positive relationship between financial literacy and retirement planning. Studying the impact of financial literacy on retirement planning in sector work in Vietnam, Nguyen et al. came to similar conclusions. Based on the previous study results, this study proposes the following hypothesis:

H2: Financial literacy has a significant influence on financial retirement planning.

2.3. Health Literacy

An individual’s attitude toward health, knowledge of their medical history and desire to make lifestyle changes are all part of their impression of their health status. One’s ability to earn money can be limited by ill health and disability. Malaysians continue to have low levels of general health literacy, according to the 2015 National and Morbidity Survey. Although it may accelerate a person’s decision to retire, poor health does not always impact retirement plans. Better financial literacy is linked to older people’s cognitive and mental health more so than higher health literacy, which stimulates regular physical activity. Since financial planning and health literacy are intertwined, a previous study hypothesizes that people who use health information search behavior are more likely to use retirement planning. Amoah looked into the connection between health literacy and wellbeing among rural and urban dwellers in Ghana and discovered that the two variables are positively correlated. A study by Wilson et al. looked at the impact of health literacy on older people’s cognitive health and found that higher health literacy was associated with decreased risk of developing incident Alzheimer’s disease. So, higher health literacy might result in high motivation to maintain a healthy lifestyle. Good financial retirement planning is needed to keep themselves healthy and have a good quality of life after retirement. Based on the reviews above, this study hypothesizes that:

H3 : Health literacy has a significant influence on financial retirement planning.

2.4. Role of a Financial Advisor

The best place to get specialized knowledge on financial planning is from financial advisors. A financial advisor’s responsibilities include coordinating, integrating and teaching their customers several aspects of financial planning, such as asset protection, retirement, debt management, tax and investment planning. A financial advisor needs to be qualified (for example, a certified financial planner), experienced and knowledgeable. Before being allowed to give investment advice in Malaysia, financial advisors must pass the necessary exams and have the necessary licenses from the Securities Commission (as well as the Central Bank of Malaysia, if they are insurance brokers). Financial advisors frequently assist clients with creating measurable goals, diversifying retirement accounts and improving their emergency preparedness from a retirement planning perspective. According to research, a person’s decision to seek professional guidance is influenced by financial attitude, expertise and demographic characteristics. People do not always use financial advisors; not all offer a high-quality, added-value advice. Thus, the financial advisor’s function may influence how well a person manages their behavior, giving them an edge or perceived behavioral control over their retirement savings decisions. Using a propensity score matching approach, Kim et al. looked at the connection between the function of a financial advisor and maintaining a retirement saving target and found that households that used a financial advisor were more likely than non-user households to cite retirement as the reason for saving. Rickwood et al. investigated the customer’s intention to save for retirement using a professional financial services advisor and the analysis indicated that the role of a professional financial services advisor did not directly influence the customers’ intention for retirement planning. According to Baron and Kenny, a variable can be used as moderating when the relationship between dependent and independent variables is not consistent. So, this study will utilize the role of the financial advisor as a moderating variable and proposes the below hypotheses:

H4: The role of the financial advisor moderates the relationship between financial attitude and financial retirement planning.

H5: The role of the financial advisor moderates the relationship between financial literacy and financial retirement planning.

H6: The role of the financial advisor moderates the relationship between health literacy and financial retirement planning.

Based on the discussion, it is evident that there is a research gap in using the role of the financial advisor as a moderating variable on the relationship between financial attitude, financial literacy, health literacy and financial retirement planning. So, this study proposes the below research framework in Figure 1.

Figure 1. Research framework.

3. Methodology

A quantitative method was used to investigate the direct links between financial attitude, financial literacy, health literacy and financial retirement planning, as well as the moderating effect of a financial advisor on the relationships between the independent and dependent variables. This study aims to test the hypothesis developed to explore the effects of independent variables on the dependent variable and the moderating effect, which may strengthen the correlations. Typically, studies that test hypotheses explain the nature of definite correlations or establish the distinctions between groups or the independence of two or more components in a particular context. A cross-sectional design will be employed as the researcher plans to gather data just once.

Furthermore, the researcher collected data for this study through a questionnaire survey. This technique was used to obtain the respondents’ perceptions about the issue under consideration. To simplify the process of determining the sample size for a finite population, Sekaran and Bougie developed a table using a sample size formula for a given population for easy reference. The total population for the study was 645,136 small and medium-sized enterprises (SME). So, according to the table of Sekaran and Bougie, the sample size should be 383 SMEs. The unit of analysis for the current study is the individual owner of each SME. The response provided by the SME owner will represent him or herself as a self-employed individual. The study employed a five-point Likert scale to measure the instruments of measurement. The measurement instrument for financial retirement planning has been adapted from Selvadurai, V. In addition, the measurement instruments of financial attitude have been adapted from Mahlanza, T. J. (2015), of financial literacy from Fernandes et al. (2014), health literacy from Nga & Yeoh (2018) and the role of the financial advisor from Vlam (2011). The measurement items are available in the Appendix A section of the study.

A statistical method must be used to analyze the acquired data. Using the SmartPLS 3.0 M3 software, the data were also examined using the partial least squares structural equation modelling (PLS-SEM) technique. Most social sciences and management study fields use the partial least squares (PLS) path modelling. The estimation is being measured by researchers using the PLS-SEM approach. It has to do with how latent constructs and path models connect. There are two stages in the PLS-SEM analysis: the structural model and the measurement model.

4. Findings and Discussion

The summary of the respondents is given below in Table 1.

Table 1. Respondents profile.

Table 1 shows that 259 (62.3%) individual owners of the SMEs were aged between 40–50 years old, 117 (28.1%) were more than 51 years old and 40 (9.6%) were between 30–39 years old. The gender distribution of the SME owners consisted of 328 (78.8%) males, while the remaining 88 (21.2%) were female. In terms of academic qualifications, most of the respondents, 301 (72.4%), had finished secondary school, with 178 (42.8%) obtaining SPM certificates and 123 (29.6%) having STPM certificates. Other than that, 90 (21.6%) had diploma certificates, while 25 (6%) had an academic qualification of degree and above. It can also be observed from the table that individual SME owners have various types of businesses, such as owners with private limited businesses having the largest number 293 (70.4%), 106 (25.5%) partnership businesses and 17 (4.1%) sole proprietorship businesses. Table 1 further revealed that the highest number of SME owners, 273 (65.6%), have 15–24 years of business experience. In comparison, 83 (20%) have less than 15 years of business experience, and 60 (14.4%) of SME owners have more than 25 years of business experience. Moreover, 383 (92.1%) of most SMEs operate their business in urban places, while 33 (7.9%) owners operate their businesses in rural areas.

4.1. Assessment of Measurement Model

Assessment of the measurement model, also known as the outer model, is the initial step in the PLS analysis. Validity and reliability are the two most important criteria used in PLS analysis to evaluate measurement models. The results of item reliability, construct internal consistency reliability, convergent validity utilizing outer loading, composite reliability, average variance explained (AVE) and discriminant validity were derived from these two criteria of measurement model evaluation. According to Hair et al., the recommended value of each item’s loading must be greater than 0.708%. Regarding the previously indicated thresholds, items with loadings below 0.708% were eliminated. Based on the analysis, it was determined that HLIT03, FAD01, FAD07 and FAD15 had values of less than 0.7008. Therefore, these products were removed since they did not meet the criteria of a loading rate of at least 0.708%. Composite reliability (CR) estimates were utilized in this study to quantify internal consistency reliability. The CR coefficient should be at least 0.70. The preference for CR was based on its capacity to provide accurate estimates of a construct’s reliability by relaxing the incorrect assumption of tau equivalency (equal item component loading) in Cronbach alpha calculations. As expected, the coefficients of consistency reliability for all constructs in this investigation are higher than 0.7, showing that all constructs have appropriate internal consistency reliability. A variable is believed to have convergent validity when its components are converged or share a large proportion of variance. Consequently, average variance extracted (AVE) is the method most frequently employed by researchers to establish the convergent validity of a construct. To achieve sufficient convergent validity, the AVE of each latent variable must be more than 0.50, as stated by Chin (1998). All AVE values in this study exceeded the acceptable value of 0.50 for their respective variables, indicating sufficient convergent validity.

Table 2 shows the value of the loadings, CR and AVE.

Table 2. Loadings, CR and AVE values.

According to Hair et al., discriminant validity refers to how precisely one construct differs from another. Additionally, it is highlighted by the improbably low correlation between the relevant metrics and other measures that are not necessarily assessing the same thing. The method of addressing discriminant validity as the square root of each construct’s AVE compared to its correlations was described by Fornell and Larcker in 1981. According to Table 3, each construct’s computed square root of AVE was greater than the correlations between the constructs, which ensures appropriate discriminant validity.

Table 3. Results of discriminant validity.

4.2. Assessment of Structural Model

The structural model evaluates the interactions between the endogenous variable, financial retirement planning, the moderator variable, the role of the financial advisor and the exogenous variables, financial attitude, health literacy and financial literacy.

According to the instructions of Hair et al., the structural model was evaluated in this work by first establishing the degree of collinearity between the set of constructs, then calculating the coefficient of variance explained (R2) and the importance of path coefficients.

According to Hair et al., looking at collinearity ensures that the structural model does not have problems with lateral collinearity. The collinearity analysis was made possible by calculating the variance inflation factor (VIF). The optimal range for the VIF values, according to Hair et al., is between 2.0 and 3.0. All the VIF values in Table 4 are below 3.0. This demonstrated that lateral multicollinearity is not a cause for concern.

Table 4. Values of VIF.

This study used bootstrapping to determine the statistical significance of the direct and indirect path coefficients. However, this work used a bootstrap sample of 5000, as advised by Hair et al., to estimate the direct path coefficients to ascertain the importance of the association between the variables in the structural models (2019). Table 5 displays the PLS structural model, with empirical t-values represented by the values inside brackets on the arrows and path coefficients represented by the values outside brackets, β.

Table 5. Path coefficient table.

Table 5 indicates that two hypotheses are accepted as the value of p is less than 0.05. From the above table, it can be concluded that financial attitude and financial literacy positively influence financial retirement planning. However, financial attitude, health literacy and financial literacy are predictors of financial retirement planning, and together, they account for 66.3% of the variation in financial retirement planning. Both substantive significance (impact size) and statistical significance (p-value) must be reported when presenting a structural model. Three values of effect size—0.02 (little), 0.15 (mid) and 0.35 (large)—are explained by a Cohen (1988) guideline. Table 5, f² value showed no effect for health literacy (0.012) because the effect size was less than 0.02. Still, there was a substantial effect size for financial attitude (0.369) and financial literacy (0.383). Q² value is larger than 0, and then the model has a predictive relevance.

4.3. Moderating Path Coefficient Assessment

Moderation is used to condense or enhance the association between variables and influence the correlation’s strength or direction. Hair et al. recommended using a two-stage procedure in which the independent and moderating factors are evaluated. The goal is to discover whether the moderator has a substantial effect on the link between the independent and dependent variables, as in this study. As illustrated in Figure 2, the two-stage method was used to develop interactions between the moderator role of financial advisor (FAD) and three independent variables of the study: financial attitude (FATT), health literacy (HLIT) and financial literacy (FLIT). Figure 2 illustrates the PLS moderation model, with the values inside the brackets indicating empirical t-values and the values outside the brackets representing path coefficients, β.

Figure 2. PLS Moderation model results.

Table 6 shows the outcome of the structural model for the moderating effects of the relationships between independent and dependent variables in this study.

Table 6. Moderating path coefficient.

The moderating effect of the role of financial advisors on the connection between financial attitude and financial retirement planning is illustrated by FAD*FATT to FRP in Figure 2 and Table 6. The findings show that the position of financial advisor has a substantial moderating influence on the association between financial attitude and financial retirement planning (t = 6.817) and the p-value (p = 0.001). As a result, H4 is supported. Table 6 depicts the moderating influence of the function of a financial advisor on the association between financial literacy and financial retirement planning. The findings show that the function of a financial advisor has a substantial moderating influence on the connection between financial literacy and financial retirement planning (t = 6.817) and the p-value (p = 0.001). As a result, H5 is supported. The interaction path FAD*HLIT to FRP in Table 6 depicts the role of a financial advisor in moderating the association between health literacy and financial retirement planning. With t statistics (t = 1.235) and the p-value (p = 0.104), the interaction of the role of a financial advisor in the association between health literacy and financial retirement planning indicates a negligible impact, indicating that H6 is not supported.

Preacher et al. suggested that a simple two-way interaction slope be produced using the model’s path coefficients and interaction effects for hypotheses H4 and H5. The results are shown in Figure 3 and Figure 4, respectively.

Figure 3. Interaction effect of FAD and FATT on FRP.

Figure 4. Interaction effect of FAD and FLIT on FRP.

Figure 3 represents the interaction effect of the role of a financial advisor (FAD) and financial attitude (FATT) on financial retirement planning (FRP). As observed from Figure 3, hypothesis H4 on the moderating effect of FAD on the relationship between FATT and FRP, the positive relationship between FATT and FRP is strengthened in the case of a high level of FAD, while with a low level of FAD, the relationship between FATT and FRP is weakened. This means that the bigger the role of financial advisors in influencing SME owners to have good retirement planning, the stronger the positive relationship between FATT and FRP, and vice versa.

According to Figure 4, hypothesis H5 on the moderating influence of FAD on the relationship between FLIT and FRP, a high level of FAD strengthens the positive association between FLIT and FRP, whereas a low level of FAD weakens the relationship between FLIT and FRP. This suggests that the greater the importance of financial advisors in persuading SME owners to plan for retirement, the larger the favorable association between FLIT and FRP, and vice versa.

4.4. Discussion

Financial planning is vital for the future before retirement. Retirement will be a nightmare if proper planning is not implemented, especially if retirees face economic difficulties once they retire. Persons who did not plan for retirement would need to work even after retirement to cover their living expenditures. Proper financial planning is vital for a happy retirement lifestyle and for ensuring financial stability for retirees and their families. Individuals with higher levels of income and education are more likely to plan for retirement by saving a larger proportion of their income. Factors such as supporting direct and indirect dependency influenced attitudes toward financial management. When people understand they must financially support their families, they learn financial discipline. Cabler said that people who practiced financial discipline had a better financial status, such as higher savings and greater financial security for themselves and their families.

The result revealed that financial attitude has a strong positive impact on financial retirement planning. The result is consistent with the previous study. Having a financial attitude can make an individual aware of their current financial situation, which is essential when planning for retirement. Tracking monthly expenditures might help individuals save money and prevent unnecessary splurging, which is vital for appropriate retirement financial planning.

Furthermore, the study found that financial literacy has a considerably positive impact on financial retirement planning. Financial literacy is vital for retirement planning. The result is consistent with earlier studies. Individuals with solid financial literacy have the required skills and knowledge to make sound and impactful retirement planning decisions with all their incomes and assets, such as creating additional income and increasing personal savings. According to Lusardi and Mitchell, individuals with relevant financial literacy have the skills, information and wisdom to spend their income wisely and save enough for retirement. On the same theme, an OECD (2013) report indicated that people must be financially educated to make sound saving decisions. Hung et al. discovered that, with relevant financial literacy, economic and financial decisions could be made more confidently, and financial resources could be handled successfully. However, health literacy showed no impact on financial retirement planning. The result is not consistent with earlier studies.

The study results revealed that the role of a financial advisor moderates the relationship between financial attitude and financial literacy in financial retirement planning. According to the findings of this study, a person’s financial knowledge and attitudes can support positive retirement financial planning. Furthermore, the significant moderating effect of the agents’ financial advisory role revealed that when consumers encounter financial problems and concerns, those who actively seek advice are significantly associated with better retirement financial planning because agents could help their consumers gain knowledge while promoting positive financial behavior and financial wellness. Financial planners, for example, could provide advice that leads to informed decision-making and improved financial outcomes, allowing their customers to become more conscious of the importance of retirement savings. Financial planners, for example, could assist their clients in planning for retirement by becoming essential information sources and providing valuable services to consumers, such as reducing overall wealth volatility, assisting clients in increasing their wealth, preventing financial losses and smoothing lifetime consumption levels. Furthermore, long-term interaction with financial planning professionals can improve consumers’ financial condition and different elements of well-being, as well as increase their financial regulatory understanding and experience. This study underlined the significance of agents such as financial planners as key financial information sources, as they positively influenced consumers’ financial actions in retirement planning. Since this study discovered that the role of agents in retirement planning significantly moderated financial literacy and financial attitude, there are opportunities for agents such as financial advisors and planners to explore and implement client communication strategies into their best practices to help build consumers’ knowledge and confidence, which can be useful for better management of their financial issues. As a result, officials at the state and federal levels should make professional financial services more accessible and cheaper to the general population, particularly self-employed individuals. The aims of boosting financial literacy and financial attitude are critical since low financial literacy and attitude can lead to harmful financial behaviors, such as failing to plan for retirement.

5. Conclusions

One of the most important stages of life is retirement. After a long period of hard work, people now cease working and take time to relax at home. A pleasant retirement requires careful planning. In retirement, financial assistance is vital. Thus, one of the most important aspects of retirement is financial planning. Those who do not save their funds for retirement may experience financial hardship when faced with unforeseen circumstances, such as having to pay for high medical costs. As people age, situations like these are more likely to occur. Therefore, effective retirement financial planning is crucial for overcoming unanticipated events. Finding the important factors influencing Malaysian self-employed people’s financial retirement planning is the main goal of this study. The study’s final output is the conceptual model describing financial retirement planning among self-employed people. The self-administered questionnaires were given to the study’s participants as part of the quantitative research strategy used to carry out this study. The goal was to pinpoint the important variables affecting Malaysian independent professionals’ financial retirement planning. The study’s results showed a substantial direct association between the dependent variable, financial retirement planning and two independent factors, namely financial attitude and financial literacy. Furthermore, no association between the independent variable’s financial retirement planning and health literacy was discovered. In addition, the financial advisor’s function considerably moderates the association between financial attitude and financial literacy toward financial retirement planning. These findings can be helpful for those keen to know the essential determinants that affect sustainable financial planning for retirement among self-employed individuals in Malaysia.

5.1. Managerial Implications

The study’s findings have various implications for future retirees, younger generations and politicians. Policymakers should raise financial retirement planning awareness among all self-employed individuals, regardless of socioeconomic background. Furthermore, self-employed people might apply some of the concepts explored in this study to plan their retirement. The study’s findings may also impact the younger generation, who know that even with a guaranteed income, saving money will be difficult given the rising cost of goods and services. This study contributed to developing a conceptual framework for financial retirement planning among Malaysian independent contractors. It is designed to suit the needs of self-employed individuals preparing for retirement by covering the variables necessary for solid financial planning.

5.2. Limitations and Future Research

This study has several drawbacks. The presence of a sample representative of Malaysia’s self-employed population. The samples in this study are mostly from Malaysia’s northern states. Furthermore, obtaining the equivalent number of samples from Malay, Chinese and Indian ethnicities is problematic. Most of the samples are from the Malay community. Their cultural upbringing would influence their views on financial literacy and planning. Psychological variables such as goal setting, exposure and awareness can be included by future researchers. These criteria are important elements to consider when planning for retirement.

Introduction

Retirement represents a significant life transition for working individuals, marking a departure from the active workforce after years of dedicated employment. This period ushers in a new stage of life, even when individuals may desire to continue working. Factors such as age discrimination, mandatory retirement policies, declining productivity, health issues, and structural changes in labor markets often necessitate workforce exit. Effective retirement planning is therefore crucial.

According to a report by Hongkong and Shanghai Banking Corporation, four key phases are essential for comprehensive retirement planning. Firstly, individuals should ascertain their retirement financial requirements while still employed. Secondly, prioritizing early savings is critical to accumulate sufficient funds for post-retirement support. Thirdly, understanding how significant life events may impact finances during retirement preparation is vital, especially for those with limited savings who may face challenges from unforeseen expenses. Finally, planning is necessary for individuals aiming to retire with reduced debt burdens, a particular imperative for those with lower incomes.

In the twenty-first century, financial planning has become increasingly indispensable, as many employees now rely on personal savings rather than solely on pensions, unlike prior generations. Strategic financial planning can mitigate potential financial challenges. Financial planning involves the judicious allocation of earned income in alignment with an individual's aspirations and values. This process enables individuals to define their financial objectives and implement necessary actions for their achievement or modification. Seeking assistance from financial professionals is also highly recommended for obtaining guidance on pre-retirement financial preparations.

In Malaysia, the Minimum Retirement Age Act 2012 (Act 753) currently sets the minimum retirement age at 60 years. Projections indicate a steady increase in Malaysia's elderly population, from 5.7% in 1990 to 9.8% in 2020. Research indicates that a substantial proportion of retirees desire or are capable of continuing work beyond age 65, often due to economic considerations, including personal wealth and retirement incentives. High debt levels, particularly for children's education, contribute to financial pressure among Malaysians.

Studies in Malaysia highlight high monthly expenses, especially for low-income workers, as a factor driving post-retirement labor market participation, often exacerbated by insufficient financial knowledge. Adequate financial literacy is essential for effective retirement financial preparation. Despite saving for retirement being a top goal, a Manulife Investor Sentiment Index (MISI) survey indicates a prevalent lack of financial planning among Malaysians, with a high debt-to-income ratio of 68%. Global trends, including increased living standards and extended life expectancies, have resulted in a growing elderly population and a higher proportion of older workers. Misguided retirement planning frequently emerges as a concern in Malaysia, reflecting anxieties about inadequate resources to support rising living costs and healthcare expenses in old age. Consequently, addressing financial retirement planning for retirees has become increasingly critical. This study aims to identify the variables influencing financial retirement planning among self-employed Malaysians, thereby enhancing their understanding and efforts to maintain their lifestyle post-retirement.

Literature Review and Hypotheses Development

Effective retirement planning is paramount for individuals to ensure adequate savings for their desired post-retirement lifestyle. While individuals bear primary responsibility for this planning, younger working generations often perceive it as a long-term burden. In Malaysia, a significant portion of the workforce, particularly self-employed individuals, lacks formal social safety net coverage and emergency funds. The prevailing low levels of financial literacy contribute to insufficient retirement planning, underscoring the need to encourage such efforts. Research suggests a positive correlation between successful retirement, positive attitudes, and comprehensive planning. The life-cycle saving and investing theory provides a framework for understanding how individuals make spending and saving decisions based on factors like life expectancy, income, and retirement goals. This theory posits that individuals aim to maximize utility from lifetime consumption, necessitating savings to finance consumption after income discontinuities, particularly during retirement.

Financial attitude encompasses an individual's values and perspectives on financial matters, such as the perceived importance of saving. Both positive and negative financial attitudes influence financial literacy outcomes. A consistent positive association has been observed between financial attitude and financial planning, where sound money management practices are linked to improved financial circumstances, including higher savings and enhanced financial security. Financial attitude is considered a crucial factor that can bolster an individual's intention to save and foster sustainable financial planning. Empirical evidence from Malaysia indicates a positive relationship between financial attitude and financial retirement planning. H1: Financial attitude has a significant influence on financial retirement planning.

Financial literacy is defined as the possession of essential information and abilities for confident financial decision-making and resource management. It involves developing knowledge and skills related to financial concepts and products. Financially literate individuals are more likely to manage their expenditures effectively, ensuring sufficient savings, particularly when income declines after retirement. Studies in various regions, including Chile and Vietnam, have demonstrated a significant positive relationship between financial literacy and retirement planning. H2: Financial literacy has a significant influence on financial retirement planning.

Health literacy pertains to an individual's perception of their health status, including their attitude toward health, understanding of medical history, and willingness to adopt lifestyle changes. Ill health and disability can constrain an individual's earning capacity. While poor health may accelerate retirement decisions, its direct impact on retirement plans is not consistently negative. Better financial literacy has been linked to older individuals' cognitive and mental health, while higher health literacy is associated with regular physical activity. Given the interconnectedness of financial planning and health literacy, previous research hypothesizes that individuals engaging in health information-seeking behaviors are more likely to undertake retirement planning. Studies have explored the positive correlation between health literacy and well-being, and its association with reduced risk of cognitive decline, suggesting that higher health literacy may motivate healthy lifestyle maintenance, which in turn supports quality of life post-retirement and necessitates good financial planning. H3: Health literacy has a significant influence on financial retirement planning.

Financial advisors serve as primary sources of specialized financial planning knowledge, assisting clients with various aspects such as asset protection, retirement, debt management, taxation, and investment planning. Qualified financial advisors are experienced, knowledgeable, and appropriately licensed to provide investment advice. From a retirement planning perspective, they commonly help clients establish measurable goals, diversify retirement accounts, and enhance emergency preparedness. Research suggests that financial attitude, expertise, and demographic characteristics influence the decision to seek professional guidance. While not all advisors offer high-value advice, their role can enhance an individual's perceived behavioral control over retirement savings decisions. Studies indicate that households utilizing financial advisors are more likely to prioritize retirement as a saving objective. Given instances where the relationship between independent and dependent variables is not consistent, a variable can function as a moderator. Consequently, the role of a financial advisor is posited as a moderating variable in this study. H4: The role of the financial advisor moderates the relationship between financial attitude and financial retirement planning. H5: The role of the financial advisor moderates the relationship between financial literacy and financial retirement planning. H6: The role of the financial advisor moderates the relationship between health literacy and financial retirement planning. A research gap exists concerning the moderating role of financial advisors on the relationships between financial attitude, financial literacy, health literacy, and financial retirement planning, which this study addresses through its proposed framework.

Methodology

A quantitative research approach was adopted to investigate the direct relationships between financial attitude, financial literacy, health literacy, and financial retirement planning, as well as the moderating effect of financial advisors on these relationships. The study aimed to test established hypotheses exploring the influence of independent variables on the dependent variable and the strengthening effects of a moderator. A cross-sectional design was employed, with data collection occurring at a single point in time via a questionnaire survey to elicit respondents' perceptions.

The target population comprised small and medium-sized enterprises (SME) in Malaysia, totaling 645,136. Based on established sample size formulas, a sample size of 383 SMEs was determined. The individual owner of each SME served as the unit of analysis, with their responses representing their perspective as a self-employed individual. A five-point Likert scale was used for measurement instruments. The measurement instrument for financial retirement planning was adapted from Selvadurai, V., financial attitude from Mahlanza, T. J. (2015), financial literacy from Fernandes et al. (2014), health literacy from Nga & Yeoh (2018), and the role of the financial advisor from Vlam (2011). Data analysis was conducted using the partial least squares structural equation modelling (PLS-SEM) technique with SmartPLS 3.0 M3 software, a widely used method in social sciences and management for measuring latent constructs and path models. The PLS-SEM analysis involved two stages: assessing the measurement model and evaluating the structural model.

Findings and Discussion

The respondent profile indicated that the majority of individual SME owners were aged 40–50 years (62.3%), predominantly male (78.8%), and had completed secondary school education (72.4%). Most owned private limited businesses (70.4%) and possessed 15–24 years of business experience (65.6%), with operations primarily in urban areas (92.1%). The assessment of the measurement model confirmed the validity and reliability of the constructs. Items with outer loadings below 0.708% were removed, and composite reliability (CR) estimates exceeded 0.7, indicating strong internal consistency. Average Variance Extracted (AVE) values greater than 0.50 and the Fornell-Larcker criterion confirmed sufficient convergent and discriminant validity, respectively. The structural model assessment confirmed no issues with multicollinearity, with all Variance Inflation Factor (VIF) values below 3.0.

Bootstrapping with 5000 samples was used to determine the statistical significance of path coefficients. The analysis revealed that financial attitude and financial literacy positively and significantly influenced financial retirement planning, with p-values less than 0.05. These two factors, along with health literacy, collectively accounted for 66.3% of the variation in financial retirement planning. Financial attitude and financial literacy demonstrated substantial effect sizes (0.369 and 0.383, respectively), while health literacy showed a negligible effect (0.012). The model also demonstrated predictive relevance with a Q2 value greater than 0.

The moderation analysis indicated a significant moderating influence of a financial advisor's role on the relationship between financial attitude and financial retirement planning (t = 6.817, p = 0.001), thus supporting H4. Similarly, a significant moderating effect was found for the relationship between financial literacy and financial retirement planning (t = 6.817, p = 0.001), supporting H5. However, the interaction between a financial advisor's role and health literacy on financial retirement planning was not statistically significant (t = 1.235, p = 0.104), indicating no support for H6. This suggests that a higher level of financial advisor engagement strengthens the positive relationship between financial attitude and financial retirement planning, and similarly between financial literacy and financial retirement planning.

Proper financial planning is crucial for a secure and stable retirement. This study's findings are consistent with previous research, highlighting that a strong financial attitude enables individuals to be aware of their current financial situation, which is fundamental for effective retirement planning. Tracking expenditures and avoiding unnecessary spending are essential for appropriate financial preparation. Furthermore, the significant positive impact of financial literacy on financial retirement planning aligns with prior studies. Individuals with robust financial literacy possess the necessary skills and knowledge to make informed decisions regarding their income and assets, such as generating additional income and increasing personal savings, crucial for retirement. While financial attitude and literacy were significant, health literacy showed no direct or moderating impact on financial retirement planning, diverging from some earlier studies.

The study’s results underscore the significant role of financial advisors in moderating the relationships between financial attitude, financial literacy, and financial retirement planning. This suggests that professional guidance can enhance individuals' financial knowledge and attitudes, leading to more robust retirement planning. When individuals face financial challenges, actively seeking advice from agents can promote positive financial behavior and overall financial wellness. Financial planners can provide valuable services such as informed decision-making, wealth management, loss prevention, and smoother lifetime consumption, ultimately improving clients' financial outcomes and awareness of retirement savings importance. Long-term engagement with financial professionals has been shown to enhance financial condition and well-being, along with regulatory understanding. The significant moderating effect of financial advisors emphasizes their importance as key information sources influencing consumer financial actions in retirement planning. Therefore, policymakers should strive to make professional financial services more accessible and affordable, particularly for self-employed individuals, recognizing that boosting financial literacy and attitude is critical for preventing detrimental financial behaviors like neglecting retirement planning.

Conclusions

Retirement is a pivotal life stage that necessitates meticulous planning to ensure financial security and well-being. Without adequate preparation, particularly regarding finances, individuals may face considerable hardship, especially when confronted with unforeseen expenses such as high medical costs, which are more likely as one ages. Therefore, effective retirement financial planning is paramount for navigating unexpected events. This study aimed to identify crucial factors influencing financial retirement planning among self-employed Malaysians.

The research adopted a quantitative strategy, utilizing self-administered questionnaires to gather data. The primary objective was to pinpoint significant variables affecting independent professionals' financial retirement planning in Malaysia. The conceptual model developed provides insights into financial retirement planning for self-employed individuals.

The study's findings demonstrated a significant direct association between financial retirement planning (the dependent variable) and two independent factors: financial attitude and financial literacy. Conversely, no significant association was found between financial retirement planning and health literacy.

Crucially, the role of a financial advisor was found to significantly moderate the relationship between financial attitude and financial literacy toward financial retirement planning. These findings offer valuable insights for individuals seeking to understand the essential determinants of sustainable financial planning for retirement among self-employed individuals in Malaysia.

Managerial Implications

The findings of this study offer several implications for future retirees, younger generations, and policymakers. Policymakers should prioritize initiatives to enhance financial retirement planning awareness across all self-employed populations, irrespective of socioeconomic background. Furthermore, self-employed individuals can apply the concepts explored in this study to strengthen their own retirement planning strategies.

For younger generations, this study provides a pertinent reminder that accumulating savings can be challenging amidst rising living costs, even with a guaranteed income. The research contributes to the development of a conceptual framework for financial retirement planning specifically tailored to Malaysian independent contractors, addressing the variables essential for robust financial planning to meet their retirement needs.

Limitations and Future Research

This study acknowledges several limitations. The sample's representativeness of Malaysia's overall self-employed population is a consideration, as respondents were primarily drawn from Malaysia's northern states. Additionally, achieving an equivalent number of samples across Malay, Chinese, and Indian ethnicities proved challenging, with the majority of samples originating from the Malay community. It is recognized that cultural upbringing may influence views on financial literacy and planning.

Future research could incorporate additional psychological variables, such as goal setting, exposure to financial information, and general awareness, as these are significant elements in retirement planning. Exploring these criteria could provide a more comprehensive understanding of the factors influencing sustainable financial planning for retirement.

Introduction

Retirement represents a significant life transition for working individuals, marking a person's exit from the active workforce and the start of a new life phase. While some may wish to work longer, factors such as age discrimination, mandatory retirement policies, declining productivity, health issues, and changes in the labor market often lead individuals to leave their jobs. Effective planning is crucial for a smooth transition into retirement.

Successful retirement planning involves several key phases. Individuals should first understand their financial needs for retirement while still employed, assessing how much capital will be required to support their lifestyle. Second, prioritizing early savings is essential, as adequate funds are necessary to support individuals in their later years. Third, understanding how major life events might impact finances is important, as unforeseen expenses can be challenging for those with limited savings. Fourth, individuals should plan to minimize debt before retirement. Financial planning is particularly critical for those with lower incomes.

In the 21st century, careful planning is more important than ever because many employees must now rely on their personal savings, unlike previous generations who primarily depended on pensions. Financial planning helps individuals manage their earnings effectively, aligning their financial decisions with their life goals and values. It allows people to review their financial objectives and take necessary steps to achieve them. Seeking guidance from financial professionals is also encouraged for advice on pre-retirement preparations.

In Malaysia, the minimum retirement age is currently 60 years. The country's elderly population has steadily grown, with projections indicating a continued increase. Studies show that many retirees either wish to or feel capable of continuing to work, often due to economic reasons like personal wealth concerns or educational expenses for their children.

Research in Malaysia indicates that high monthly expenses, particularly for low-income workers, contribute to retirees' continued labor force participation. A lack of financial knowledge exacerbates these difficulties, highlighting the need for better financial literacy to prepare for retirement. Despite saving for retirement being a top goal, many Malaysians lack comprehensive financial planning, facing high debt-to-income ratios. The global rise in living standards and life expectancies means more people are living longer, increasing the number of older workers and highlighting the importance of addressing retirement and financial planning concerns. This study aims to identify the factors influencing financial retirement planning among self-employed Malaysians, providing insights to help them maintain their lifestyles after retirement.

Literature Review and Hypotheses Development

Planning for retirement is essential for individuals to accumulate sufficient savings to support their desired lifestyle. While personal financial planning can lead to sensible money management, younger generations sometimes feel burdened by the necessity of long-term financial foresight. In Malaysia, a significant portion of the workforce, particularly self-employed individuals, lacks social safety net coverage and emergency funds. The generally low level of financial literacy among Malaysians means that retirement planning is not widely understood, making it important to encourage such planning to ensure long-term stability. Past research consistently highlights the importance of financial retirement planning and identifies factors influencing it, with successful planning linked to positive attitudes and desired lifestyles without financial stress.

The life-cycle saving and investing theory provides a framework for understanding how individuals make spending and saving decisions based on their life expectancy, income, and retirement goals. This theory suggests that people aim to maximize their overall lifetime satisfaction from consumption, necessitating savings during working years to finance consumption after retirement. Basic financial literacy is crucial for making effective financial decisions, as individuals are increasingly responsible for their own financial well-being.

Financial Attitude

Financial attitude refers to an individual's beliefs and values about personal finance, such as the importance of saving money. Both positive and negative attitudes can influence an individual's financial literacy and behavior. For example, negative attitudes towards saving may reduce interest in learning about financial concepts. Research indicates a consistent positive relationship between financial attitude and financial planning. Individuals who practice good money management often achieve better financial outcomes, including increased savings and enhanced financial security for themselves and their families. A strong financial attitude can significantly boost an individual's intention to save and their ability to engage in sustainable financial planning.

H1: Financial attitude has a significant influence on financial retirement planning.

Financial Literacy

Financial literacy is defined as possessing the knowledge and skills required to confidently make financial decisions and manage financial resources. It involves developing both financial knowledge and practical skills, often gained through education or experience with financial concepts and products. Individuals with strong financial literacy are better equipped to avoid spending beyond their income, ensuring they have adequate savings when income decreases, especially after retirement. Studies have consistently found a significant positive relationship between financial literacy and retirement planning.

H2: Financial literacy has a significant influence on financial retirement planning.

Health Literacy

Health literacy encompasses an individual's understanding of their health status, medical history, and willingness to make lifestyle changes. Poor health or disability can limit a person's ability to earn income. Although ill health might accelerate a decision to retire, it does not always dictate retirement plans. Better financial literacy is often linked to cognitive and mental health in older adults, while higher health literacy is associated with regular physical activity. Given the connection between financial planning and health, some research suggests that individuals who actively seek health information are more likely to engage in retirement planning. Studies have also indicated a positive correlation between health literacy and overall well-being, as well as a link between higher health literacy and a reduced risk of cognitive decline. Therefore, higher health literacy may motivate individuals to maintain a healthy lifestyle, which requires good financial retirement planning to support a quality of life post-retirement.

H3: Health literacy has a significant influence on financial retirement planning.

Role of a Financial Advisor

Financial advisors are a primary source of specialized knowledge in financial planning. Their responsibilities include guiding clients on various aspects of financial management, such as asset protection, retirement, debt management, tax planning, and investments. Qualified financial advisors typically hold certifications and licenses. From a retirement planning perspective, advisors often help clients set measurable goals, diversify retirement accounts, and improve their emergency preparedness. While a person's decision to seek professional advice is influenced by their financial attitudes and demographic characteristics, not all advice is of high quality. However, the involvement of a financial advisor can influence an individual's financial behavior, providing perceived control over retirement savings decisions. Research suggests that households utilizing financial advisors are more likely to prioritize saving for retirement. This study considers the role of a financial advisor as a moderating variable, examining how it might influence the relationships between other factors and financial retirement planning.

H4: The role of the financial advisor moderates the relationship between financial attitude and financial retirement planning.

H5: The role of the financial advisor moderates the relationship between financial literacy and financial retirement planning.

H6: The role of the financial advisor moderates the relationship between health literacy and financial retirement planning.

This study identifies a research gap concerning the moderating role of financial advisors in the relationships between financial attitude, financial literacy, health literacy, and financial retirement planning.

Methodology

This study employed a quantitative research method to investigate the direct relationships between financial attitude, financial literacy, health literacy, and financial retirement planning. It also examined the moderating effect of a financial advisor's role on these relationships. The research aimed to test the developed hypotheses, exploring how independent variables influence the dependent variable and how a moderating effect might strengthen these correlations. A cross-sectional design was utilized, meaning data was collected from respondents at a single point in time.

Data for this study were gathered through a questionnaire survey, designed to capture respondents' perceptions on the subject. The sample size was determined using established guidelines for a given population, with the unit of analysis being individual owners of small and medium-sized enterprises (SMEs), representing themselves as self-employed individuals. A five-point Likert scale was used for measurement, with instruments adapted from various previous studies to assess financial retirement planning, financial attitude, financial literacy, health literacy, and the role of the financial advisor.

The collected data were analyzed using statistical methods, specifically the partial least squares structural equation modeling (PLS-SEM) technique with SmartPLS software. PLS-SEM is widely used in social sciences and management studies to examine relationships between latent constructs and path models. The analysis involved two stages: assessing the measurement model (outer model) and evaluating the structural model (inner model).

Findings and Discussion

The study involved 416 individual owners of SMEs. The majority of respondents (62.3%) were aged 40–50 years, with 78.8% being male. Most respondents (72.4%) had completed secondary school. Business types varied, with private limited businesses being the most common (70.4%). A significant portion of SME owners (65.6%) had 15–24 years of business experience, and most (92.1%) operated their businesses in urban areas.

The statistical analysis involved assessing the quality of the measurement model, which confirmed the validity and reliability of the study's measures. This involved ensuring that items consistently measured their intended constructs and that constructs were distinct from each other. Some initial survey items were removed because they did not meet established statistical criteria for strong performance within the model. The analysis confirmed that all remaining constructs demonstrated appropriate internal consistency and convergent validity.

The structural model was then evaluated to examine the relationships between the variables. This assessment confirmed that there were no issues with multicollinearity among the constructs. The independent variables—financial attitude, health literacy, and financial literacy—together accounted for 66.3% of the variation in financial retirement planning. The results indicated that financial attitude and financial literacy positively influenced financial retirement planning. However, health literacy did not show a significant influence on financial retirement planning in this study.

Further analysis examined the moderating role of a financial advisor. The findings revealed that the role of a financial advisor had a significant moderating influence on the relationship between financial attitude and financial retirement planning. This suggests that the positive connection between financial attitude and financial retirement planning is strengthened when a financial advisor plays a greater role in influencing SME owners' retirement planning. Similarly, the role of a financial advisor also significantly moderated the relationship between financial literacy and financial retirement planning, meaning a high level of financial advisor involvement strengthens the positive link between financial literacy and retirement planning. However, the study found no significant moderating effect of a financial advisor's role on the relationship between health literacy and financial retirement planning.

Proper financial planning is crucial for a comfortable retirement, preventing financial hardship, especially when facing unforeseen expenses like high medical costs. This study's findings are consistent with previous research, confirming that a strong financial attitude positively impacts financial retirement planning. Being aware of one's financial situation and managing monthly expenditures are essential for effective retirement planning. The study also supports earlier findings that financial literacy significantly and positively influences financial retirement planning. Individuals with solid financial literacy possess the skills and knowledge to make informed decisions about their income and assets, enabling them to save wisely for retirement. The lack of a significant impact from health literacy on retirement planning in this study contrasts with some earlier research. However, the significant moderating effect of financial advisors highlights their crucial role. When individuals seek advice, advisors can enhance financial knowledge and promote positive financial behavior, leading to better retirement outcomes. This underscores the importance of professional financial services in improving individuals' financial well-being and awareness of retirement savings.

Conclusions

Retirement is a crucial life stage that necessitates careful planning, particularly regarding financial support. Effective financial retirement planning is vital for navigating unexpected events, such as high medical costs, which become more likely with age. This study aimed to identify key factors influencing financial retirement planning among self-employed Malaysians. Using a quantitative research approach with self-administered questionnaires, the study developed a conceptual model to describe financial retirement planning in this group.

The study's findings revealed a significant direct relationship between financial retirement planning and two independent factors: financial attitude and financial literacy. This indicates that a positive financial outlook and strong financial knowledge are critical for effective retirement preparation. Conversely, no direct association was found between financial retirement planning and health literacy. Importantly, the study found that the role of a financial advisor significantly moderates the relationship between both financial attitude and financial literacy toward financial retirement planning. These results provide valuable insights for individuals seeking to understand the determinants of sustainable financial planning for retirement, particularly for self-employed individuals in Malaysia.

The study's findings offer several practical implications for future retirees, younger generations, and policymakers. Policymakers should focus on increasing awareness of financial retirement planning for all self-employed individuals, irrespective of their socioeconomic background. Self-employed individuals can also apply the concepts explored in this study to improve their own retirement plans. For the younger generation, the study emphasizes the challenges of saving amidst rising living costs, reinforcing the importance of early financial discipline. This research contributes to a conceptual framework for financial retirement planning among self-employed Malaysians, outlining essential variables for robust financial planning tailored to their needs.

Despite its contributions, this study has limitations. The sample mainly represents Malaysia's northern states, and obtaining an equal representation of different ethnicities was challenging, with most samples being from the Malay community. Cultural backgrounds may influence financial literacy and planning perspectives. Future research could expand on this by including psychological variables such as goal setting, exposure, and awareness, which are also important elements in retirement planning.

Introduction

Retirement represents a significant life change for every working person. After many years of dedicated work, retirement marks a person's exit from the active workforce and the start of a new life phase. Even for those who wish to continue working later in life, various factors such as age discrimination, mandatory retirement policies, reduced productivity, poor health, and changes in the job market often lead to leaving their jobs.

For a well-planned retirement, there are four key stages. First, individuals should understand their financial needs for retirement while still employed, knowing how much money will be necessary to support themselves. Second, saving early should be a top priority, as a certain amount of funds is needed to assist people in their later years. Third, individuals must understand how major life events might affect their finances when preparing for retirement. Those with low savings or assets may face difficulties with unexpected expenses after they retire. Fourth, planning should enable individuals to retire with less debt. Financial retirement planning is particularly crucial for those with lower incomes compared to those with higher incomes.

Planning is vital in the current century because many employees will need to rely on their savings, unlike previous generations who often depended solely on pensions. Effective financial planning helps resolve money-related challenges. Financial planning involves using earned money wisely in a way that aligns with personal goals and values. It allows individuals to review their financial goals and take necessary steps to achieve them. It is also advisable for those approaching retirement to seek guidance from financial professionals who can offer advice on important steps to take before retiring.

In Malaysia, the minimum retirement age is currently 60 years old. The older population in Malaysia has been steadily increasing, from 5.7% in 1990 to an estimated 9.8% in 2020. Research indicates that many retirees still wish to or feel they are able to work into their later years, often due to financial concerns, including personal wealth and retirement benefits. A major reason for higher debt levels among Malaysians is the cost of children’s education.

Studies in Malaysia have explored what influences older adults to continue working. High monthly expenses, especially for lower-income workers, have been identified as a reason for retirees to stay in the job market. This difficulty often stems from a lack of financial understanding. These individuals need education on how to prepare their finances for retirement, which requires sufficient exposure to financial literacy. Although saving for retirement is a top goal for Malaysians, many lack financial planning, with a high debt-to-income ratio. The modern era, with globalization, has led to higher living standards and longer life expectancies. With lower death rates, the number of people over 60 is growing daily. Due to societal and economic changes, there will be more older people than children and more elderly workers in the future. Concerns about insufficient retirement funds to cover rising living costs and expensive healthcare are common in Malaysia, highlighting poor retirement planning. As dependency has increased significantly, addressing issues related to retirees and their financial retirement planning has become essential. This study aims to identify the factors affecting financial retirement planning among self-employed Malaysians. It seeks to benefit self-employed Malaysians by improving their understanding of financial retirement planning and efforts to maintain their lifestyle after retirement.

Literature Review and Hypotheses Development

Planning for retirement is critical to ensure that individuals have enough savings to live their desired lifestyle once they stop working. Financial planning usually begins with the individual. A person with a solid personal financial plan can manage their money effectively. However, younger generations often feel burdened by retirement planning because it involves making long-term financial decisions. In Malaysia, a significant portion of the workforce, particularly self-employed individuals, are not covered by official social safety nets. Many Malaysians also lack emergency savings. Retirement planning is not widely understood due to low levels of financial literacy. It is important to encourage retirement planning to ensure long-term financial security. Studies suggest a strong link between successful retirement and effective planning, positive attitudes, and overall success. Previous research has emphasized the importance of financial retirement planning and examined the factors that influence it. The main benefit of good retirement planning is the ability to live a desired lifestyle without financial limitations.

The life-cycle saving and investing theory helps explain how people make spending and saving decisions based on their expected lifespan, income, retirement goals, and desires to pass on wealth to future generations. This theory is widely accepted because basic financial literacy is needed for effective financial planning, as individuals are expected to take increasing responsibility for their own finances. The life-cycle hypothesis examines how workers save and retire. It suggests that individuals aim to get the most satisfaction from their spending throughout their entire lives. Therefore, consumption should remain consistent even if income changes, and saving is necessary to support spending after retirement. The theory emphasizes maximizing satisfaction over a lifetime, meaning working individuals are expected to save money earned during their working years to spend in retirement.

Financial Attitude

Financial attitudes include a person's views and opinions about various personal money matters, such as whether they believe saving money is important. Both positive and negative attitudes can affect a person's financial understanding. For example, if individuals have negative attitudes about saving money for the future, they may not be interested in learning about financial literacy. Surveys consistently show a positive connection between financial attitude and financial planning. People who manage money well tend to have better financial situations, including more savings and greater financial security for themselves and their families. A positive financial attitude is crucial for increasing a person's intention to save and for achieving sustainable financial planning. Research conducted in Malaysia indicates that a positive financial attitude is linked to better financial retirement planning. Based on this, the following idea is proposed:

H1: Financial attitude significantly influences financial retirement planning.

Financial Literacy

Financial literacy means having the necessary knowledge and skills to confidently make financial decisions and manage money. It involves developing both financial knowledge and practical skills, and understanding how they relate, based on a person's education or experience with financial concepts and products. People who are financially literate are more likely to avoid spending more than they earn each month, which helps them build sufficient savings for when their income decreases, especially after retirement. Studies in various countries have found a strong positive relationship between financial literacy and retirement planning. Building on these findings, this study suggests:

H2: Financial literacy significantly influences financial retirement planning.

Health Literacy

Health literacy refers to an individual's outlook on health, knowledge of their medical history, and willingness to make lifestyle changes. Poor health and disability can limit a person's ability to earn money. Studies show that many individuals have low levels of general health literacy. While poor health might speed up a person's decision to retire, it does not always impact their retirement plans. Better financial literacy is more strongly connected to cognitive and mental health in older adults than higher health literacy, which encourages regular physical activity. Since financial planning and health literacy are related, some research suggests that people who actively seek health information are more likely to plan for retirement. Studies have shown a positive link between health literacy and overall well-being. Higher health literacy may lead to greater motivation for maintaining a healthy lifestyle. Good financial retirement planning is needed to stay healthy and maintain a good quality of life after retirement. Based on these observations, this study proposes:

H3: Health literacy significantly influences financial retirement planning.

Role of a Financial Advisor

Financial advisors are the best source for specialized knowledge about financial planning. Their role includes helping clients with various aspects of financial planning, such as protecting assets, retirement planning, managing debt, and investing. A financial advisor should be qualified, experienced, and knowledgeable. In Malaysia, financial advisors must pass specific exams and hold the necessary licenses before they can provide investment advice. Financial advisors often help clients set measurable goals, diversify retirement accounts, and improve their readiness for emergencies. Research shows that a person's financial attitude, expertise, and personal background influence their decision to seek professional advice. However, not everyone uses financial advisors, and not all advisors offer high-quality, valuable advice. Therefore, the role of a financial advisor can impact how well a person manages their behavior, giving them a perceived advantage or control over their retirement savings decisions. Studies have found that households using a financial advisor were more likely to identify retirement as a reason for saving compared to those who did not. Other research indicates that a professional financial advisor's role did not directly influence clients' intention to save for retirement. Variables can be considered moderating when the relationship between two other variables is not consistent. This study will therefore examine the role of the financial advisor as a moderating factor and proposes the following ideas:

H4: The role of the financial advisor significantly affects the relationship between financial attitude and financial retirement planning.

H5: The role of the financial advisor significantly affects the relationship between financial literacy and financial retirement planning.

H6: The role of the financial advisor significantly affects the relationship between health literacy and financial retirement planning.

Based on this discussion, there is a clear gap in research exploring the financial advisor's role as a moderating variable in the relationships between financial attitude, financial literacy, health literacy, and financial retirement planning.

Methodology

This study used a quantitative approach to examine the direct connections between financial attitude, financial literacy, health literacy, and financial retirement planning. It also looked at how the role of a financial advisor might change these relationships. The goal of this study was to test the proposed ideas by exploring how certain factors influence retirement planning and how a moderating factor might strengthen these connections. Studies that test hypotheses typically explain the nature of clear relationships or identify differences between groups or the independence of components in a specific situation. A cross-sectional design was used, meaning data was collected only once.

The data for this study was gathered through a survey questionnaire. This method was chosen to understand the participants' opinions on the topic. To determine the appropriate sample size for the population, a standard table was used. The study focused on individual owners of small and medium-sized businesses (SMEs) in Malaysia. Each SME owner’s response represented them as a self-employed individual. A five-point scale was used to measure responses. The tools used for measurement were adapted from existing research on financial retirement planning, financial attitude, financial literacy, health literacy, and the role of financial advisors.

Statistical methods were used to analyze the collected data. Specialized software, SmartPLS, was used for the analysis, specifically the partial least squares structural equation modeling (PLS-SEM) technique. This technique is commonly used in social sciences and management research. It focuses on how hidden concepts and models connect. The PLS-SEM analysis involves two main stages: assessing the structural model and the measurement model.

Findings and Discussion

Information about the study participants is summarized below.

Most of the individual owners of SMEs, about 62.3%, were between 40 and 50 years old, while 28.1% were over 51, and 9.6% were between 30 and 39. The majority of SME owners were male (78.8%), with females making up the rest (21.2%). In terms of education, most respondents (72.4%) had finished secondary school, with many having SPM or STPM certificates. Others had diplomas (21.6%) or degrees (6%). SME owners had various types of businesses, with private limited businesses being the most common (70.4%), followed by partnerships (25.5%), and sole proprietorships (4.1%). The largest group of SME owners (65.6%) had 15–24 years of business experience, while 20% had less than 15 years, and 14.4% had over 25 years. Most SMEs (92.1%) operated in urban areas, with a smaller number (7.9%) in rural areas.

Assessment of Measurement Model

Assessing the measurement model, also known as the outer model, is the first step in the PLS analysis. Validity and reliability are the two main criteria used to evaluate measurement models in PLS analysis. This assessment provided results for how reliable each item was, how consistent the constructs were internally, how well different measures of the same concept agreed (convergent validity), and how well different concepts could be distinguished (discriminant validity). It is recommended that each item's loading value be greater than 0.708%. Items with loadings below this value were removed. Based on the analysis, certain items were removed because their values were less than this threshold. Internal consistency reliability was measured using Composite Reliability (CR) estimates, which should be at least 0.70. All consistency reliability coefficients for the constructs in this study were above 0.7, indicating good internal consistency. A variable has convergent validity when its components come together or share a large amount of common ground. Therefore, the average variance extracted (AVE) is the most common method researchers use to establish convergent validity. For sufficient convergent validity, each latent variable's AVE must be greater than 0.50. All AVE values in this study exceeded 0.50, showing good convergent validity.

Assessment of Structural Model

The structural model evaluates the connections between financial retirement planning (the outcome variable), the role of the financial advisor (the moderating variable), and financial attitude, health literacy, and financial literacy (the influencing variables).

The structural model was evaluated by first confirming there were no issues with commonality among the constructs, then by calculating how much of the variation in the outcome variable was explained (R2), and finally by looking at the importance of the path coefficients (the strength of relationships).

Checking for commonality ensures the structural model does not have problems with relatedness. This was done by calculating the variance inflation factor (VIF). The ideal VIF values are typically between 2.0 and 3.0. All VIF values in this study were below 3.0, indicating no concerns about multicollinearity.

To determine the statistical importance of the direct and indirect path coefficients, a technique called bootstrapping was used, involving a sample of 5000 repetitions. The results showed that two hypotheses were supported, meaning their p-values were less than 0.05. It was concluded that financial attitude and financial literacy positively influence financial retirement planning. Together, financial attitude, health literacy, and financial literacy explain 66.3% of the differences in financial retirement planning. When presenting a structural model, it is important to report both the practical importance (impact size) and the statistical importance (p-value). An effect size of 0.02 is considered small, 0.15 is medium, and 0.35 is large. The results showed a small effect for health literacy (0.012) but a substantial effect for financial attitude (0.369) and financial literacy (0.383). A Q2 value greater than 0 indicates that the model has good predictive relevance.

Moderating Path Coefficient Assessment

Moderation is used to show how one variable can strengthen or weaken the relationship between other variables. This study used a two-step process where the influencing and moderating factors were evaluated. The goal was to see if the moderator had a significant effect on the link between the influencing and outcome variables. The two-step method was used to understand the interactions between the moderating role of a financial advisor and the three influencing variables: financial attitude, health literacy, and financial literacy.

The results showed how the role of financial advisors influenced the connection between financial attitude and financial retirement planning. The findings confirmed that the financial advisor's role significantly affects the link between financial attitude and financial retirement planning, supporting H4. The findings also showed that the financial advisor's role significantly affects the connection between financial literacy and financial retirement planning, supporting H5. However, the interaction involving health literacy and financial retirement planning showed a negligible effect, meaning H6 was not supported.

A simple two-way interaction analysis was performed to better understand the findings for H4 and H5.

This analysis showed that for H4, which examines how the financial advisor's role moderates the relationship between financial attitude and financial retirement planning, a strong positive relationship between financial attitude and financial retirement planning is strengthened when the financial advisor's role is significant. Conversely, this relationship weakens when the financial advisor's role is less significant. This means that the more actively financial advisors influence SME owners to plan for retirement, the stronger the positive link between financial attitude and retirement planning, and vice versa.

Similarly, for H5, which looks at how the financial advisor's role moderates the relationship between financial literacy and financial retirement planning, a strong positive link between financial literacy and financial retirement planning is strengthened when the financial advisor's role is significant. This relationship weakens when the financial advisor's role is less significant. This suggests that the greater the importance of financial advisors in encouraging SME owners to plan for retirement, the stronger the positive connection between financial literacy and retirement planning, and vice versa.

Discussion

Financial planning is crucial for the future before retirement. Without proper planning, retirement can become difficult, especially if individuals face financial challenges after leaving the workforce. Those who do not plan for retirement may need to continue working to cover their living expenses. Effective financial planning is vital for a comfortable retirement lifestyle and for ensuring financial stability for retirees and their families. Individuals with higher incomes and more education are often more likely to plan for retirement by saving a larger part of their earnings. Factors such as supporting family members can influence attitudes toward money management; when people understand they need to financially support their families, they often learn financial discipline. Studies indicate that financially disciplined individuals tend to have better financial standing, including higher savings and increased financial security for themselves and their families.

The study's results showed that a positive financial attitude strongly impacts financial retirement planning, aligning with previous research. Having a good financial attitude can make an individual more aware of their current financial situation, which is essential for retirement planning. Tracking monthly expenses can help individuals save money and avoid unnecessary spending, which is crucial for proper retirement financial planning.

Furthermore, the study found that financial literacy significantly and positively impacts financial retirement planning, consistent with earlier studies. Financial literacy is vital for retirement planning. Individuals with strong financial literacy have the necessary skills and knowledge to make sound and effective retirement planning decisions with their incomes and assets, such as creating additional income streams and increasing personal savings. Research shows that financially literate individuals have the skills, information, and wisdom to spend their income wisely and save enough for retirement. Similarly, it has been noted that people need to be financially educated to make good saving decisions. Other findings indicate that with relevant financial literacy, economic and financial decisions can be made more confidently, and financial resources can be managed successfully. However, health literacy did not show an impact on financial retirement planning in this study, which differs from some earlier findings.

The study’s results revealed that the role of a financial advisor moderates the relationship between both financial attitude and financial literacy with financial retirement planning. These findings suggest that a person's financial knowledge and attitudes can support positive retirement financial planning. Moreover, the significant moderating effect of financial advisors indicates that when consumers face financial problems and concerns, those who actively seek advice are more likely to achieve better retirement financial planning. This is because advisors can help clients gain knowledge while promoting positive financial behavior and financial well-being. For example, financial planners can offer advice that leads to informed decision-making and improved financial outcomes, making their clients more aware of the importance of retirement savings. Financial planners can assist clients in retirement planning by serving as key sources of information and providing valuable services, such as reducing overall financial uncertainty, helping clients increase their wealth, preventing financial losses, and smoothing consumption levels throughout their lives. Additionally, long-term interaction with financial planning professionals can improve clients' financial situations and various aspects of their well-being, while also increasing their understanding and experience with financial regulations. This study highlighted the importance of advisors, such as financial planners, as key financial information sources because they positively influenced consumers' financial actions in retirement planning. Since this study found that the role of advisors significantly moderates financial literacy and financial attitude in retirement planning, there are opportunities for financial advisors and planners to explore and implement client communication strategies to help build consumers' knowledge and confidence, which can be useful for better management of their financial issues. Therefore, government officials should work to make professional financial services more accessible and affordable to the general public, especially self-employed individuals. Efforts to boost financial literacy and positive financial attitudes are crucial, as low levels in these areas can lead to harmful financial behaviors, such as failing to plan for retirement.

Conclusions

Retirement is one of life's most important stages. After a long period of hard work, people stop working and have time to relax at home. A comfortable retirement requires careful planning, and financial support is vital during this time. Thus, financial planning is one of the most critical aspects of retirement. Those who do not save funds for retirement may face financial hardship when unexpected events occur, such as needing to pay for high medical costs. As people age, such situations are more likely. Therefore, effective retirement financial planning is crucial for overcoming unforeseen challenges. The main goal of this study was to identify the important factors influencing financial retirement planning among self-employed Malaysians. The study's final outcome is a model that describes financial retirement planning among self-employed individuals. This study used a quantitative research approach, with self-administered questionnaires given to participants. The aim was to pinpoint the key factors affecting financial retirement planning among independent professionals in Malaysia. The study's results showed a significant direct connection between financial retirement planning and two influencing factors: financial attitude and financial literacy. However, no connection was found between financial retirement planning and health literacy. Additionally, the role of a financial advisor significantly moderates the relationship between financial attitude and financial literacy with financial retirement planning. These findings can be helpful for those interested in understanding the essential factors that affect sustainable financial planning for retirement among self-employed individuals in Malaysia.

Managerial Implications

The study's findings have several implications for future retirees, younger generations, and policymakers. Policymakers should raise awareness about financial retirement planning among all self-employed individuals, regardless of their financial background. Furthermore, self-employed individuals can apply some of the ideas explored in this study to plan their retirement. The study's findings may also impact the younger generation, who understand that even with a guaranteed income, saving money can be difficult given the rising cost of goods and services. This study contributed to creating a framework for financial retirement planning among Malaysian independent contractors. It is designed to meet the needs of self-employed individuals preparing for retirement by covering the variables necessary for solid financial planning.

Limitations and Future Research

This study has certain limitations. The sample was mostly from Malaysia's northern states, and obtaining an equal number of samples from different ethnic groups (Malay, Chinese, and Indian) was challenging, with most samples being from the Malay community. Cultural background might influence their views on financial literacy and planning. Future researchers could include psychological variables such as goal setting, exposure, and awareness. These are important elements to consider when planning for retirement.

Introduction

Retirement is a significant life event for everyone who works. After many years on a job, a person stops working and enters a new phase of life. Sometimes, people want to keep working as they get older, but things like age rules, health problems, or changes in jobs can make them leave work. A report listed four key steps for good retirement planning. First, people should know how much money they will need when they stop working. Second, it is good to start saving early. Third, people should understand how big life events can change their money plans. Those with little savings might struggle with unexpected costs after retirement. Fourth, people should plan to have less debt when they retire. This kind of money planning is even more important for people with lower incomes.

Today, workers need to save their own money for retirement. This is different from the past when people relied more on pensions. Planning helps solve money problems. It means using money earned from work wisely, in a way that matches a person's goals and what they care about. Financial planning helps people look at their money goals and take steps to reach them. It is also good for people getting ready to retire to get help from money experts who can give advice.

In Malaysia, the rule says people can retire at age 60. The number of older people in Malaysia is growing. Studies show that many older workers want or can keep working even after age 65. Often, they keep working because of money reasons, like personal savings or retirement benefits. High debt, often due to children's education, is a big problem for many Malaysians.

Studies in Malaysia looked at why older people keep working. High monthly bills, especially for low-income workers, were a reason. This problem often comes from not knowing enough about money. These people need to learn how to prepare their money for retirement. A survey showed that Malaysians often do not plan their finances, even though saving for retirement is a main goal. Their debt compared to their income is very high. People are living longer, and there will be more older adults than children in the future. Many older people worry about not having enough money for rising living costs and health care. Bad retirement planning often causes these worries in Malaysia.

This study wants to find out what helps self-employed Malaysians plan their money for retirement. It aims to help self-employed Malaysians understand retirement money planning better and how to keep their current way of life after work. The rest of this paper will talk about past research, ideas, how the study was done, what was found, and the main ideas.

Literature Review and Hypotheses Development

Planning for retirement is very important so people have enough money to live how they want when they stop working. Good money planning helps a person manage their money well. Younger workers sometimes feel burdened by this planning because they need to save for a long time. In Malaysia, many workers, especially self-employed ones, do not have a safety net for unexpected needs, often due to a lack of money knowledge. It is important to help people plan for their retirement over many years so they can live the life they want without money problems. The "life-cycle saving" idea helps us understand how people save for the future, knowing they will need money after they stop working. This idea is important because people need basic money knowledge to make good financial plans and take responsibility for their own money.

This study looks at how certain factors affect retirement planning. One factor is "financial attitude," which means a person's beliefs about money and saving. Studies show that a good financial attitude is linked to good financial planning, leading to more savings and security. This study suggests:

H1: Financial attitude has a strong effect on financial retirement planning.

Another factor is "financial literacy," meaning having the information and skills to make good money choices. People good with money know how to manage their income to save for the future, especially for retirement. Studies confirm a clear link between knowing about money and planning for retirement. This study suggests:

H2: Financial literacy has a strong effect on financial retirement planning.

"Health literacy" is also considered, which is about a person's understanding of their health and desire for healthy changes. While poor health can sometimes lead to earlier retirement, studies on its direct impact on retirement planning have been mixed. This study suggests:

H3: Health literacy has a strong effect on financial retirement planning.

Finally, the study examines the "role of a financial advisor," someone who gives expert advice on money planning. Advisors help people set money goals and prepare for the future. Studies show that families who use an advisor are more likely to save for retirement. This study explores if an advisor's role changes the impact of financial attitude, financial literacy, and health literacy on retirement planning. It suggests:

H4: The role of the financial advisor changes the link between financial attitude and financial retirement planning.

H5: The role of the financial advisor changes the link between financial literacy and financial retirement planning.

H6: The role of the financial advisor changes the link between health literacy and financial retirement planning.

The study's plan for these connections is shown in Figure 1.

Methodology

This study used a method that collects numbers and facts to look at the direct links between financial attitude, financial literacy, health literacy, and planning for retirement. It also looked at how a financial advisor's role might change these links. The study aimed to test the ideas that were set out earlier. Data was collected only one time.

The study gathered information using a survey with questions. This helped to understand what people thought about the topic. The study needed to get answers from a certain number of people. It aimed to survey 383 owners of small and medium-sized businesses (SMEs) in Malaysia. Each owner's answers spoke for them as a self-employed person. The survey used a scale from one to five to measure answers. The questions about financial retirement planning, financial attitude, financial literacy, health literacy, and the role of a financial advisor came from other studies. The specific questions are listed in the Appendix A.

After collecting the data, special computer software was used to look at the numbers. This method helps to understand how different ideas or factors connect with each other. It involves two main steps: checking how well the questions measure what they are supposed to, and then checking how the different ideas connect.

Findings and Discussion

The study gathered information from business owners, as shown in Table 1. Most owners were between 40 and 50 years old, and most were male. Most had finished secondary school and had between 15 and 24 years of business experience. Most of their businesses were located in cities.

Before looking at the main findings, the study made sure the survey questions were reliable and measured what they were supposed to. Some questions that did not fit well were removed. The study used special math tests to check that the survey questions were good. All results showed that the questions were trustworthy and measured what they intended. The results of these checks are in Table 2 and Table 3.

Next, the study looked at how different factors directly affect retirement planning. This check made sure there were no hidden problems in the data (see Table 4). The results, shown in Table 5, show that financial attitude and financial literacy strongly affect financial retirement planning. These three factors together explain a large part (66.3%) of how people plan for retirement. However, health literacy did not show a strong effect on financial retirement planning in this study.

The study also looked at how the role of a financial advisor might change these relationships (see Figure 2 and Table 6). It found that a financial advisor's role makes the link stronger between financial attitude and retirement planning. It also makes the link stronger between financial literacy and retirement planning. This means if a financial advisor is involved, good financial attitude and knowledge help even more with retirement planning. However, the advisor's role did not strongly change the link between health literacy and retirement planning. These findings are shown in Figure 3 and Figure 4.

Overall, proper money planning is key for a happy retirement. The study confirmed that a good financial attitude and knowing about money greatly help people plan for retirement. When people understand they need to support their families financially, they learn to manage money better. Financial advisors are also very important. When people get advice from them, it helps them plan better for retirement by gaining knowledge and making smarter money choices. Advisors can help people save more, avoid losses, and improve their overall money situation. This study highlights that financial planners are a key source of information and help for people planning their retirement. Making professional financial services easier to get and more affordable for everyone, especially self-employed people, is important because lacking money knowledge and a good attitude can lead to bad financial choices, like not planning for retirement.

Conclusions

Retirement is a very important time in life. After many years of hard work, people stop working. Good planning is needed for a comfortable retirement, and having enough money is key. People who do not save for retirement might face hard times, like high medical bills, as they get older. So, good financial planning for retirement is very important to handle unexpected problems. This study aimed to find out what helps self-employed Malaysians plan their money for retirement. The study showed that a person's financial attitude (their feelings about money) and financial literacy (their knowledge about money) strongly affect their retirement planning. However, health literacy did not show a clear link. The study also found that a financial advisor's help greatly strengthens the link between financial attitude and financial literacy when it comes to retirement planning. These findings can help people in Malaysia who work for themselves understand what is most important for good financial planning for retirement.

The results of this study are helpful for people getting ready to retire, younger people, and leaders. Leaders should help more self-employed people learn about retirement planning, no matter their income level. Self-employed people can use the ideas from this study to plan their own retirement. Younger people can also learn from this study that saving money will be hard, even if they have a steady job, because prices keep going up. This study helps set up a guide for self-employed Malaysians to plan their finances for retirement, covering what is needed for strong financial planning.

This study does have some limits. The people surveyed mostly came from the northern parts of Malaysia, and most were from the Malay community. Their cultural background might affect their views on money. Future studies could look at other factors like setting goals, being exposed to financial ideas, and general awareness, as these are also important for retirement planning.