03 | Beyond Retirement

Abstract

Studies done on life after retirement mainly give focus on the monetary aspects of retirement life. However, this study takes a different approach by focusing on the lifestyle of retirees beyond retirement. Factors that are taken into consideration for this study are financial commitment after retirement, living expenses after retirement, working after retirement and place to live after retirement. This study takes on a quantitative approach by sending questionnaires through Google form. In order to encourage and get good response, questions are full structured with answer options given and several open ended questions that require respondents to provide their own opinion. A random sampling survey was conducted on employees of the International Islamic University Malaysia (IIUM) employees in Kuantan. A total of 87 employees responded to the survey. After retirement, people lifestyles will pretty much depend on their financial capability and their planning. The study show that people have financial commitment that extend during their retirement. 54% have outstanding financial commitment to be settled after retirement including housing loan, study and personal loan, car loan, credit card debts and others. The living expenses although should be the same but people think that they need less during retirement. The study also shows expenses for dependents education, vacation/travel including umrah/hajj is higher than medical, food and other basic needs. While most of the respondents agree that retirement is in a way associated with “staying at home”, going on vacations and travelling seems to be a favourite activity that they have in mind when they retire. A majority of Muslim respondents have the intention to perform umrah/hajj even during their retirement years. Healthcare forms an integral part of a retiree’s life. Having the awareness on the importance of healthcare in their golden years, 66% of the respondents claimed that they have medical insurance to cover for medical expenses. In regards to financial sufficiency during retirement, an almost equal split claimed that they will continue to work. Slightly less than half claimed they will work on a part-time basis and an overwhelming 62% said they will go into some business. Findings from the survey stated that 68% of the respondents claimed that they would stay in the current house after retirement indicating that they do not intend to have a higher or lower living. The study found that workers have modest aspirations and expectation in respect to their retirement.

Keyword: Retirement, Retirement Planning, Lifestyle