Analyzing factors that lead to unpreparedness of employee for retirement in Shah Alam / Izni Nadirah Najmuddin

Retirement financial planning is one of phase that have been highlight in Islamic financial planning, besides tax and estate planning. Unfortunately, it have been take for granted and neglected by not only Malaysian, but as well as others developing countries such as China and United States. It is due to the long term financial planning and basically will take a more sacrifice in saving for the future. The main purpose of this research study is to identify the preparation of employee in facing their retirement and directly identify the factors that make employee become unprepared for their retirement. The three factors that have been highlight in this research are knowledge, management income as well in believing. This research study is a quantitative research that used questionnaire in collecting data. 100 of questionnaires have been distributed to the population of 130 people from different sectors of working in Shah Alam. Through then, the collection of data is then being analyzed in descriptive analysis, Pearson Correlation and Regression Analysis that basically will analyzed the two different variables. In conclusion from this research, it have been seen that most of employee in Shah Alam are not fully prepared in facing their retirement. Most of them believed that there are still insufficient in their current saving in order to face their retirement. Besides, the results have proved that only 33% of the respondents that basically contribute in more than one retirement scheme, but still could not guaranteed their sufficient saving for their retirement. A further discussion regarding factors that make them unprepared is being discussed clearly that give a huge figure and review on how these factors influences the preparation of employee.