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Finance, Accounting and Business Analysis 
Volume 4 Issue 1, 2022 

http://faba.bg 

The Relationship Between Retirement Perceptions and Savings 

Behaviour Among Early Adult Workers in Palembang 

Nuzulul Aini1,3, Jaizah Othman1*, Hafizah Sudin1, Sharullizuannizam Salehuddin1,  

Siti Balqis Amran4, Noreha Halid2, Aimi Anuar2  

1 Faculty of Business Management and Professional Studies, Management and Science University, Shah 

Alam, Malaysia 

2 College of Business Administration, Princess Nourah Bint Abdulrahman University, Riyadh, Kingdom 

of Saudi Arabia 
3 Politeknik Negeri Sriwijaya, Palembang, Indonesia 
4 Product Development Department, RHB Islamic Bank Berhad, Kuala Lumpur, Malaysia 

Info Articles  
 

Abstract 

Keywords:  
Retirement Perceptions, Savings 
behaviour, Early adult worker 

 Purpose: The purpose of this study is to find out if there is a relationship between 

retirement perception and saving among early adult workers in Palembang. This 
study is a research with a quantitative approach. 

Design/Methodology/Approach: The research design used is correlational 
quantitative research. Questionnaires were distributed through a Google form 
completed by 170 workers aged 20-40 years old in Palembang. The data collection 
method uses a retirement perception scale and a savings behavior scale analyzed 
using product-moment correlation. SPSS software was used for data analysis. 

Findings: The results show that there is a relationship with a significant positive 
correlation between retirement perception and saving behavior among early adult 
workers in Palembang. The limitation of this study is in determining the age of the 
subjects, who are early adult workers (20-40 years old), who the research shows tend 
to have a positive perception of retirement because they are still far from thinking 
about retirement, so the anxiety they feel is still low, which affects the results of this 
study. 

Practical Implications: The implication is that workers should enrich the 
information about all matters related to retirement so that they are able to better 
understand all the changes that will occur and prepare everything to realize 
retirement as expected. Also, they should improve their saving behavior from now 
on to be financially secure in retirement and not have any problems related to 
financial changes later on. 

Originality/Value: This study contributes to the existing literature on the 
relationship between retirement and savings behaviour. In addition, this is the first 
time a study of this type has been conducted in Palembang. The researchers are 
interested in learning more about people's attitudes toward retirement and their 
saving behaviour, as workers in early adulthood tend to focus more on having fun 
than saving for the future. 
 

 

  

   

*Address Correspondence:   
E-mail: hristina_jaizaho@yahoo.com 

 

 



Finance, Accounting and Business Analysis 4 (1) 2022 

53 

 

INTRODUCTION 

 

According to Santrock (2012), peak physical performance occurs between the ages of 19 and 26. From 

their mid-twenties into late early adulthood, people also often seek stability for their early career in a 

particular field. They may work hard to improve their career and improve their financial situation. It is 

appropriate for early adulthood to be a productive age for a worker in the life of their career. When a 

worker reaches retirement age, retirement is a normal part of their life. The term "retirement" refers to the 

act of finally ending one's career or employment (Mansor et al., 2015). When faced with the financial 

uncertainty of retirement, one option is to start saving now. Individuals can prepare for any differences 

between their current income and future needs by setting money aside (the life-cycle motives).  

People's perceptions of what life will be like after retirement are shaped by a variety of factors, 

including changes in late adulthood and the onset of retirement. a variety of factors Many people, 

therefore, believe that retirement is a signal that a person is no longer needed because of their lower 

productivity. Due to their lack of preparation for retirement, many people have developed a sense of 

pessimism because they believe that their physical condition is deteriorating, they are suffering from a 

variety of illnesses, and their appearance has deteriorated (Paidi, 2013). However, there are a few people 

who are positive about retirement. Many of them believe that retirement allows them to spend more time 

with their family members who were previously consumed by their work schedules. 

Of these two perceptions about retirement, this negative perception will cause anxiety for workers who 

are looking forward to retirement. One of the negative perceptions that often arise upon retirement is that 

financial resources will diminish, leaving them unable to meet all of the needs of family life. The purpose 

of this study is to find out if there is a relationship between retirement perceptions and savings behaviour of 

early adulthood workers in Palembang. The research conducted in this study aims to answer the following 

research questions:  

RQ1 : Is there a relationship between the perception of retirement (physical condition) and savings 

behaviour of early adult workers in Palembang? 

RQ2 : Is there any relationship between retirement perception (financial condition) and saving 

behaviour of early adult workers in Palembang? 

RQ3 : Is there a relationship between retirement perceptions (social condition) and savings behaviour 

of early adult workers in Palembang? 

 

LITERATURE REVIEW 

 

An employee retires when he or she reaches the retirement age set by the agency or company where he 

or she works. Perceptions of retirement vary; there are workers who perceive it. There are positives and 

negatives about retirement. This difference in perception is due to this. There are many factors that affect a 

person's perception. It is important to develop a positive attitude so that retirement is no longer seen as a 

threat in life, but as a great opportunity to be optimised so that individuals can better perceive and embrace 

retirement.  

Research by Santrock (2012) found that peak physical performance is reached between the ages of 19 

and 26. People in their late twenties and early thirties are also likely to seek stability in their early careers 

in certain occupations. They may work very hard to be successful professionally and financially. In 

addition, a person's cognitive creativity peaks in maturity around age forty and declines rapidly thereafter. 

Young adults are expected to take on new roles in their lives, as important life changes occur during this 

developmental stage. Consequently, young adulthood is a fertile period in a worker's professional life. 

According to the Malaysian study by Ibrahim et al. (2012), Malaysian workers still do not know that 

they need to save for retirement. Their lack of knowledge about the importance of saving for retirement is 

alarming. If they have enough money to pay for their future expenses, they know the importance of saving 

for retirement. As a result, many retirees are forced to return to work to cover their basic living expenses 

once they are no longer working. While it is true that it is easier to talk about saving for retirement than 

actually putting in the time and effort, it is possible with everyone's support and consistent attempts to 

change this. There needs to be some understanding of the need to save for one's future. 

Saving is a decision-making process and saving is a routine activity to achieve a goal (retirement 

funds, buying something, giving gifts) (Lewis, Webley & Furnham 1995; Warneryd, 1999). Perceived 

future financial needs, saving decisions, and saving activities all play a role in saving behaviour. People, on 

the other hand, tend to view saving as an investment, depositing money into a bank account, speculating, 

or gambling with mortgages. In other words, saving is trying to save money that is not used for 

consumption for a specific purpose and time frame. 

In a study by Adami et al. (2018), socioeconomic factors were found to play an important role in 

determining retirement savings behavior among ethnic minorities. The study concluded that high poverty 



Finance, Accounting and Business Analysis 4 (1) 2022 

54 

 

rates are more likely due to educational attainment, part-time work, and long-term unemployment. During 

the same period, a study by Dolls et al. (2018) found an increase in tax-deductible private savings and 

earned income due to the efforts of the German pension administration, which sends out annual letters 

with detailed information about the pension system and expected pension payments. A recent study by 

Alkhawaja and Albaity (2020) examined the effects of future perspective (FTP), financial risk tolerance 

(FRT), and knowledge of financial planning for retirement (KFPR) on retirement savings behavior (RSB). 

The study found that FTP and KFPR had a significant positive effect, while FRT had an insignificant 

negative effect on RSB, and these results are consistent with previous studies. Koh et al. (2021) examined 

the relationship between trust in people and participation in retirement planning. The study found that 

trust in private and public financial agents was positively associated with saving for retirement and that 

financial education also played an important and consistent role in retirement decision making. 

 

Perception of Retirement 

The perception of retirement is shaped by both internal and external influences, such as one's thinking 

ability and psychological state, which can lead to positive and negative perceptions of retirement. 

 
Aspects of Perception of Retirement 

The process of perception takes place in the cognitive area of the individual. The objects that are 

perceived in relation to retirement are the physical, financial, and social conditions. Retirement is a time 

full of changes and the most fundamental is the change of these three things, so it has an impact on the 

individual's perception of retirement. 
 

a. Physical condition 

Retirement, entering the phase of development into late adulthood, brings individual physical 

changes. Declining physical abilities affect individual activities related to physical activity. 
 

b. Financial situation 

The financial situation of individuals who work and retire has changed significantly. While working, 

individuals receive regular income in the form of wages for their work, but when the individual retires, the 

regular financial income changes. 
 

c. Social conditions 

The change from the role of a worker to that of a retiree has implications for the social life of the 

individual. The life of a worker who has a variety of work routines and meets different colleagues every 

day will change with retirement. Support from loved ones and family is necessary to ease the adjustment 

process. 
 

Forms of Perception 

There are two forms of perception, namely: 
 

a. Positive Perception 

Individual evaluation of an object or information with a positive view or as expected from the 

perceived object or existing rules. A positive perception of retirement is an individual's evaluation of 

retirement and all the changes that accompany it with a positive outlook. According to Rini (2001), forms 

of positive perceptions of retirement include: 

1. Improving health by reducing the amount of stress one faces; 

2. After retirement, there is more time and opportunities for togetherness with families and partners; 

3. Retirement does not cause people to age quickly and get sick easily because it has the potential to 

improve health by allowing them to spend more time exercising; and 

4. They can spend more time on social life in the community. 
 

b. Negative Perception 

Individual perception of certain objects or information with a negative view that is contrary to what is 

expected from the perceived object or from the existing rules. Negative perception of retirement is the 

evaluation of retirement and all the changes that accompany it by an individual with a negative view. 

According to Rini (2001), forms of negative perceptions of retirement include: 

1. Loss of status and respect; 

2. Lack of financial resources; 

3. Loss of various facilities and amenities; 

4. Exclusion from old associations and the feeling of growing old; and 



Finance, Accounting and Business Analysis 4 (1) 2022 

55 

 

5. Feeling of being useless and no longer needed due to age and declining productivity. 

 

METHODOLOGY AND DATA 

 

The population in this study were workers who have the characteristics of early adulthood (20-40 

years) in Palembang. Since the number of the population with the criteria for early adulthood workers (20-

40 years) in Palembang is not known with certainty, the researchers used non-probability sampling, i.e., 

they determined the characteristics that represent the identified population. The type of non-probability 

sampling used is quota sampling. This is a technique for determining a sample from a population that has 

certain characteristics until the desired number (quota) is reached (Sugiyono, 2014). 

The research design used in this study is a correlational research design. In this study, the 

questionnaires were distributed online. Respondents are asked 34 questions to be completed with 

alternative answers that were provided. The quantitative analysis in this study starts with data collection 

and specifying the variables that describe the perception of retirement of workers in categories that in the 

end represent the total score of the respondent's completion of the questionnaire. To support this research, 

the researcher uses primary data sources, that is, data obtained from the results of the distribution of 

questionnaires to early adult workers aged 20 to 40 years in Palembang. 

A likert scale was used in the data collection for the two variables. The Likert scale is the rating value 

of each response added to get a total score. In this scale, there are 2 types of questions: positive and 

negative. The positive scale is used to measure the positive scale and the unfavorable scale is used to 

measure the negative scale. The data analysis technique used in this study is the product-moment 

correlation technique using SPSS software. The purpose of this technique is to find out the relationship 

between the independent variable and the dependent variable. 

 

THEORETICAL FRAMEWORK AND HYPOTHESIS DEVELOPMENT 

 

Theoretical Framework 

 

Figure 1.  Framework 

 

Hypothesis Development 
 

Hypothesis 1: Physical Condition 

Hypothesis 1 of this study states that the perception of retirement (physical condition) has a negative 

relationship with saving behavior among early adult workers in Palembang. This means that the more 

positive the perception of retirement (physical condition), the lower the saving behavior. On the other 

hand, the more negative the perception of retirement (physical condition), the higher the savings behavior. 
 

Hypothesis 2: Financial Condition 

Hypothesis 2 of this study states that the perception of retirement (financial condition) has a negative 

relationship with the saving behavior of early adult workers in Palembang. That is, the more positive the 

H2 

H3 

H1 

Perception of Retirement 

Physical Condition 

Financial Condition 

Social Condition 

Saving  

Behaviour 



Finance, Accounting and Business Analysis 4 (1) 2022 

56 

 

perception of retirement (financial condition), the lower the savings behavior. On the other hand, the more 

negative the perception of retirement (financial situation), the more savings behavior increases. 
 

Hypothesis 3: Social Condition 

Hypothesis 3 of this study states that the perception of retirement (social situation) is negatively related 

to the saving behavior of early adult workers in Palembang. This means that the more positive the 

perception of retirement (social condition), the lower the saving behavior. On the other hand, the more 

negative the perception of retirement (social condition), the higher the saving behavior. 

 

DATA ANALYSIS AND RESULTS 

 

Demographic Analysis 

A demographic of the research respondents can be presented which is intended to describe the profile 

or identity of respondents according to gender, respondent's age, status and level of education which can 

be described as follows: 

 

Table 1 Demographic Information 

 Category Frequency Percentage (%) 

Gender Male 98 57.6 

Female 72 42.4 

Age 20 – 25 61 35.9 

26 – 30 47 27.6 

31 – 35  35 20.6 

36 – 40 22 12.9 

41 – 50 5 2.9 

Status Married 110 64.7 

Single 60 35.3 

Level of 

Education 

High School 27 15.9 

Diploma 48 28.2 

Degree / Magister 95 55.9 

 

Descriptive Statistics 

 

Table 2 Descriptive Statistics  
N Minimum Maximum Mean Std. Deviation 

Physical Condition 170 24,00 40,00 33,7412 3,55898 

Financial Condition 170 21,00 40,00 32,4118 4,13327 

Social Condition 170 32,00 55,00 45,3176 5,59313 

Saving Behaviour 170 21,00 40,00 32,1824 4,22681 

Valid N (listwise) 170         

 

 

Normality 

Table 3 Normality Test : One-Sample Kolmogorov-Smirnov Test 

  Unstandardized Residual 

N 170 

Normal Parametersa,b Mean .0000000 

Std. Deviation 3.20099863 

Most Extreme Differences Absolute .056 

Positive .036 

Negative -.056 

Kolmogorov-Smirnov Z .731 

Asymp. Sig. (2-tailed) .659 

 

From the normality test using the Kolmogov-Smirnov approach in Table 3 above, it can be seen that 

the data are normally distributed. This is evident from the asymptotic significance (2-tailed) of 0.659 



Finance, Accounting and Business Analysis 4 (1) 2022 

57 

 

>0.05. This means that the standardized residual is declared to be normally distributed. 

 

Reliability Analysis  

 

Table 4 Reliability Test 

Variable  Cronbach’s Alpha Total item Description 

Physical Condition 0.720 8 Reliable 

Financial Condition 0.732 8 Reliable 

Social Condition 0.783 11 Reliable 

Saving Behaviour 0.791 7 Reliable 

 

The results of the reliability test in the table 4 show that the Cronbach alpha value of physical 

condition (X1), Financial condition (X2), social condition(X3) and saving behaviour (Y) have been tested 

has a value above 0.70. Cronbach alpha values ranged from 0.720 - 0.791. Thus, all the variables in this 

study were declared reliable 

 

Hypothesis Testing (Correlation and Regression) 

In seeking empirical evidence on the factors determining business performance, the theoretical model 

of the study led to the development of eight hypotheses. 

 

Table 5 Product Moment Correlation & Coefficient Determination 

Independent Variable R r2 Sig Description Category 

Physical condition 0.421 0.177 0.000 Sig < 0.05 Significant 

Financial condition 0.873 0.763 0.000 Sig < 0.05 Significant 

Social condition 0.503 0.253 0.000 Sig < 0.05 Significant 

 

Overall, physical condition, financial condition, and social condition are positively related to saving 

behaviour. The details of the analysis for each hypothesis are provided below. 

 

Physical condition 

The correlation coefficient or r-number of the physical condition is 0.421 greater than r-table (0.421 > 

0.1971) with a value of p = 0.000, indicating that there is a relationship with a significant positive 

correlation direction because the significant value is 0.000 < 0.05. Therefore, it can be concluded that there 

is a positive relationship between the perception of retirement (physical condition) and saving behaviour, 

which means that the researcher's hypothesis is rejected. The correlation contribution of the two variables 

is 17.7%. This explains that the more positive the perception of retirement (physical condition), the higher 

the saving behaviour of workers. The more negative the perception of retirement (physical condition), the 

lower the saving behaviour. This study rejects hypothesis 1, which states that the relationship between 

perceptions of retirement (physical condition) and saving behaviour is negative, but the results show the 

opposite direction of correlation. The majority of them currently perceive retirement as it is fun because 

with retirement they can take a break from work and pursue hobbies to fill their free time 

 

Financial condition 

The correlation coefficient of financial condition is 0.873 greater than the r-table (0.873 > 0.1971) with 

a value of p = 0.000, indicating that there is a relationship with a significant positive correlation direction, 

since the significant value is 0.000 < 0.05. Therefore, it can be concluded that there is a positive correlation 

between the perception of retirement (financial situation) and saving behaviour, which means that the 

researcher's hypothesis is rejected. The correlation contribution of the two variables is 76.3%. This explains 

that the more positive the perception of retirement (financial condition), the higher the saving behaviour of 

employees. On the other hand, the more negative the perception of retirement (financial condition), the 

lower the saving behaviour. This study rejects hypothesis 2, which states that the correlation between 

perception of retirement (financial condition) and saving behaviour is negative, but the results show the 

opposite direction of correlation. The majority of respondents currently perceive retirement as fun, in part 

because retirement allows them to be entrepreneurial to meet their financial needs. 

 

Social condition 

The correlation coefficient or r-count of the social condition is 0.503 greater than r-table (0.503 > 

0.1971) with a value of p = 0.000, indicating that there is a relationship with a significant positive 

correlation direction, because the significant value is 0.000 < 0.05. Therefore, it can be concluded that 



Finance, Accounting and Business Analysis 4 (1) 2022 

58 

 

there is a positive relationship between the perception of retirement (social conditions) and saving 

behaviour, which means that the researcher's hypothesis is rejected. The correlation contribution of the 

two variables is 25.3%. This explains that the more positive the perception of retirement (social 

conditions), the higher the saving behaviour of workers. On the other hand, the more negative the 

perception of retirement (social conditions), the lower the saving behaviour. So, this study rejects 

hypothesis 3, which states that the correlation between the perception of retirement (social condition) and 

saving behaviour is negative, but the results show the opposite direction of correlation. The majority of 

respondents currently perceive retirement as fun, in part because they can spend more time with their 

families during retirement. 

 

CONCLUSION 

 

In conclusion, based on the results of this study, the research hypotheses were rejected. It is believed 

that retirement perception is negatively correlated with saving behavior, but the results of the study show 

the opposite direction. The research results show that the more positive workers' perception of their 

retirement period, the higher their saving behavior. On the other hand, if their perception of retirement is 

negative, their saving behavior will also be lower. 

The results of this study are not consistent with the basic assumption of the researcher, which is that a 

negative perception of retirement causes anxiety, especially in relation to the finances of workers, so they 

try to reduce anxiety by trying to take preventive measures, that is, save more before retirement, so that 

when you retire you will not have financial problems. 

The conclusion from this research is that the company should continue its efforts to prepare for 

workers who will retire by providing training for entrepreneurs so that workers have the necessary 

knowledge to become entrepreneurs after retirement. And for the workers for more enriching information 

about all matters related to retirement, so it is expected that they will be able to better understand all the 

changes that will occur and prepare everything to realize retirement as expected. Also, from now on, they 

should improve their saving behavior in order to be financially secure in retirement and not have problems 

related to financial changes later on. 

For other researchers who will conduct research on the same topic, it is recommended to use different 

research methods to enrich the studies on saving behavior. Also, other factors/independent variables that 

could influence saving behavior should be added. 

 

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Alkhawaja, S. O., & Albaity, M. (2020). Retirement saving behaviour: evidence from UAE. Journal of 

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Dolls, M., Doerrenberg, P., Peichl, A., & Stichnoth, H. (2018). Do retirement savings increase in response 

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