Retirement savings behaviour: The extended interactive theory of planned behaviour among Malaysian civil servants

Abstract

Malaysian civil servants face interconnected challenges in building adequate retirement savings. These challenges include financial behaviour, rising living costs, limited financial literacy, fiscal constraints, and inconsistent policy support. Addressing these issues is essential for strengthening retirement preparedness and long-term financial security. Nevertheless, empirical evidence on the financial and policy-related determinants of retirement saving behaviour among Malaysian civil servants remains limited. This study investigates retirement saving behaviour using an extended Interactive Theory of Planned Behaviour framework. It incorporates tax incentives from a behavioural economics perspective and examines the moderating role of perceived government policies based on rational choice theory. A quantitative, cross-sectional survey collected data from 275 permanent civil servants in Grades 9–15 with income tax records. Data were analysed using PLS-SEM. The findings show that attitude and tax incentives positively influence retirement saving behaviour, whereas subjective norms are not significant. Perceived behavioural control and perceived government policies do not moderate the relationships between attitude, subjective norms, and retirement saving behaviour. These findings highlighted the importance of financial incentives while indicating that policy perceptions have limited moderating influence. Future research should adopt longitudinal or experimental designs to establish causal relationships and assess the long-term effects of policy reforms and financial education on retirement planning. The findings provide practical guidance for policymakers, employers, and financial institutions to develop targeted retirement education, strengthen incentive mechanisms, and improve financial resilience among public sector employees.