Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan

Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan

Saving is an important indicator of economic development where it is viewed as an element of finance. This main objective of this thesis is to investigate the saving behavior of working and elderly. It is suggested that working people make saving compared to the elderly, which consistent with the li...

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Main Author: Nur Hafizah, Ramli
Format: Thesis
Language:eng
Published: 2011
Subjects:
HG Finance
Online Access:https://etd.uum.edu.my/3705/1/s804089.pdf
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id my-uum-etd.3705
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
advisor Lim, Hock Eam
topic HG Finance
spellingShingle HG Finance
Nur Hafizah, Ramli
Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan
description Saving is an important indicator of economic development where it is viewed as an element of finance. This main objective of this thesis is to investigate the saving behavior of working and elderly. It is suggested that working people make saving compared to the elderly, which consistent with the life-cycle hypothesis theory. Besides that, the other objectives are to exam the effect on saving for people who have old age protection plans such as pension scheme, EPF and insurance scheme. In this thesis, the data are collected by survey interview. A total of 400 respondents were chosen by the nonprobability sampling design and they are interviewed by face to face. For statistical analysis, the saving behaviors are divided into two. First, the saving rate (which is modeled by multiple regression). Second, the probability of saving (which is modeled by logistic regression). Results of descriptive analysis show that in terms of percentage of savings (save or not), the workers are higher than the elderly. However, by level of education, more elderly have saving compared to worker. Results of multiple regression model suggests that the significant determinants of one’s saving rate are ethnic groups, level of education, income from business and level of incomes. Whereas, for probability of saving, the significant determinants are age, ethnic groups, level of education, working and insurances. Either descriptive statistics or the econometrics modeling, the saving behavior of working people and elderly are found to be different significant such that working people tend to save more than elderly. The policy implications and suggestions are discussed. For instance, policymakers should keep an eye on all of the significant variables of saving behaviours on formulating policies to encourage saving in Malaysia.
format Thesis
qualification_name masters
qualification_level Master's degree
author Nur Hafizah, Ramli
author_facet Nur Hafizah, Ramli
author_sort Nur Hafizah, Ramli
title Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan
title_short Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan
title_full Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan
title_fullStr Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan
title_full_unstemmed Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan
title_sort estimating the determinants of saving behaviour of elderly and workers: the effects of retirement plan
granting_institution Universiti Utara Malaysia
granting_department College of Arts and Sciences (CAS)
publishDate 2011
url https://etd.uum.edu.my/3705/1/s804089.pdf
_version_ 1747827630284996608
spelling my-uum-etd.37052016-04-27T07:38:03Z Estimating the Determinants of Saving Behaviour of Elderly and Workers: the Effects of Retirement Plan 2011 Nur Hafizah, Ramli Lim, Hock Eam College of Arts and Sciences (CAS) College of Arts and Sciences HG Finance Saving is an important indicator of economic development where it is viewed as an element of finance. This main objective of this thesis is to investigate the saving behavior of working and elderly. It is suggested that working people make saving compared to the elderly, which consistent with the life-cycle hypothesis theory. Besides that, the other objectives are to exam the effect on saving for people who have old age protection plans such as pension scheme, EPF and insurance scheme. In this thesis, the data are collected by survey interview. A total of 400 respondents were chosen by the nonprobability sampling design and they are interviewed by face to face. For statistical analysis, the saving behaviors are divided into two. First, the saving rate (which is modeled by multiple regression). Second, the probability of saving (which is modeled by logistic regression). Results of descriptive analysis show that in terms of percentage of savings (save or not), the workers are higher than the elderly. However, by level of education, more elderly have saving compared to worker. Results of multiple regression model suggests that the significant determinants of one’s saving rate are ethnic groups, level of education, income from business and level of incomes. Whereas, for probability of saving, the significant determinants are age, ethnic groups, level of education, working and insurances. Either descriptive statistics or the econometrics modeling, the saving behavior of working people and elderly are found to be different significant such that working people tend to save more than elderly. The policy implications and suggestions are discussed. For instance, policymakers should keep an eye on all of the significant variables of saving behaviours on formulating policies to encourage saving in Malaysia. 2011 Thesis https://etd.uum.edu.my/3705/ https://etd.uum.edu.my/3705/1/s804089.pdf text eng validuser masters masters Universiti Utara Malaysia Allessie, R., Lusardi, A., & Kapteyn, A. (1999). Saving after retirement: Evidence from three different surveys. Labour Economics,6, 277-310. Ando, A. & Modigliani, F. (1960). The permanent income and the life cycle hypothesis of saving behavior: comparisons and tests. In consumption and saving, vol. 2 (pp. 74-108) Wharton School of Finance and Commerce, University of Pennsylvania, Ando, A. & Modigliani, F., 1963. The Life-Cycle Hypothesis of saving: aggregate implications and tests. American economic review, 53(1), 55-84. Asmaddy Haris. (2000). Tabungan dan pertumbuhan ekonomi: Satu analysis kointegrasi dan pembetulan ralat. 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