A conceptual framework for financial literacy and retirement planning among youth in Sarawak, Malaysia

Retirement planning is an essential component of personal financial management, especially in the face of rising life expectancy, evolving employment structures, and the gradual shift away from public pension reliance. In Malaysia, despite ongoing national efforts to improve financial literacy, many young individuals, particularly in Sarawak, continue to face challenges in preparing adequately for retirement. Alarming statistics show that 70 percent of EPF contributors in Sarawak have savings below RM10,000, while 60 percent of youth are unable to cover a RM1,000 emergency without resorting to borrowing. These figures highlight the urgency of addressing financial preparedness among this demographic. This study aims to explore the factors that influence personal retirement planning among youth aged 15 to 30 in Sarawak. Specifically, it examines the roles of financial knowledge, computation capability, financial education, and attitudes toward financial products. A cross-sectional survey design will be employed, and data will be analyzed using Structural Equation Modeling to determine the strength and direction of relationships between the identified variables. The questionnaire includes sections on socioeconomic background and validated scales measuring each construct. The expected findings will provide insight into the financial behaviours and literacy levels of Sarawakian youth, identifying key gaps and opportunities for intervention. For practitioners and educators, the study offers guidance on how to develop targeted financial literacy programs that resonate with young people’s lived realities. From a policy perspective, the results support the need for region-specific strategies that incorporate financial education into broader development plans. This research contributes to the growing body of knowledge aimed at promoting long-term financial resilience among youth in emerging economies.