Enhancing Financial Resilience Among Malaysian Senior Citizens: Islamic Finance Mechanisms and the Moderating Role of Saving Behaviour
DOI:
https://doi.org/10.31436/jif.v15i2.1119Keywords:
Financial Resilience; Senior Citizens, Saving Behaviour, Healthcare Expenditure, Islamic Finance, Micro-TakafulAbstract
As Malaysia rapidly transitions towards an ageing nation, ensuring the financial well-being of older adults has become a critical socio-economic challenge. This study investigates the key determinants of financial resilience among Malaysian older adults, focusing on the effects of financial literacy, healthcare expenditure, and social support, while examining saving behaviour as a moderating factor. A quantitative research design was employed using primary data collected through a structured survey of 321 older adults selected via convenience sampling. The data were analysed using SPSS 22 and Partial Least Squares Structural Equation Modelling (PLS-SEM) through SmartPLS 4. The structural model explains 51.8% of the variance in financial resilience. The findings indicate that healthcare expenditure has a significant negative effect on financial resilience, while saving behaviour and social support have significant positive effects. In contrast, financial literacy does not have a significant direct effect on financial resilience. Moderation analysis further reveals that saving behaviour significantly strengthens the relationship between financial literacy and financial resilience, whereas it does not significantly moderate the relationships between healthcare expenditure and financial resilience or between social support and financial resilience. These findings suggest that financial knowledge alone may be insufficient to enhance financial resilience unless translated into active saving practices. Furthermore, saving behaviour alone may not adequately mitigate the financial pressures associated with healthcare expenditure. The study therefore highlights the need for integrated policy frameworks that combine individual financial capability with institutional support mechanisms. In this regard, Islamic social finance instruments, particularly waqf, zakat, and takaful, can serve as complementary institutional safety nets to strengthen the long-term financial security and resilience of Malaysia’s ageing population.
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