May – June 2020 ISSN: 0193-4120 Page No. 9965 - 9971 9965 Published by: The Mattingley Publishing Co., Inc. Goal Clarity and Financial Literacy towards Retirement Confidence among Working Adults in Southern Region, Malaysia [1] Kae Tee Ong, [2] Awang, Siti Rahmah Awang, [3] Norhayati Zakuan. Zuraidah Sulaiman, Thoo Ai Chin, Adaviah Mas’od, Ahmad Jusoh, Ungku Norulkamar Ungku Ahmad [1] Azman HAshim International Business School, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru, Malaysia ongkaetee@gmail.com,sitirahmah@utm.my, norhayatimz@utm.my, zuraidahs@utm.my, acthoo@utm.my, adaviah@utm.my, ahmadj@utm.my, m-nkamar@utm.my Article Info Volume 83 Page Number: 9965 – 9971 Publication Issue: May - June 2020 Article History Article Received: 19 November 2019 Revised: 27 January 2020 Accepted: 24 February 2020 Publication: 18 May 2020 Abstract: This study investigates goal clarity and financial literacy towards retirement confidence among working adults in Southern Region, Malaysia. The objectives are to determine the relationships between the independent psychological variables, goal clarity and financial literacy towards retirement confidence, and to determine the strong predictor between the two independent variables. Using a survey as research instrument, 173 working adults in the region participated in the study. Correlation and Multiple Linear Regression were used as statistical analysis methods. The findings indicate that goal clarity has a positive, linear and strong relationship towards retirement confidence (r=0.731, p < 0.05), while the relationship of financial literacy and retirement confidence is also positive and linear, it is moderate (r=0.614, p < 0.05). Goal clarity has also been identified to be the better predictor towards retirement confidence, contributing 57.1% in the causal relationship to retirement confidence. Keywords: Financial Literacy, Goal Clarity, Retirement Confidence, Working Adults. I. INTRODUCTION Retirement could be wonderful years of one’s life. After a lifetime of hard work and toil, it is time for one to enjoy the fruits of labour. Many working adults seek solace in the imagination of their retirement when things get tough in real life. However, as with all causes worthy, failing to plan is planning to fail. While a holistic approach is recommended to set one up for a satisfying retirement, and money isn’t everything [1], financial security post-retirement has never more important in this day and age with decreasing fertility and increasing life expectancy [2]. Ill-prepared, this major life transition could potentially turn one’s life upside down. In fact, a majority of Malaysians are not prepared for retirement [3]. Economic studies indicate that most Americans are poorly prepared to maintain financial independence throughout the entire retirement period [4]. Many individuals encounter a late-life financial shortfall that stems from a failure to set aside sufficient personal savings during their working years [5]. The recent Melbourne Mercer Global Pension Index (MMGPI) 2019 report revealed important information on how 37 retirement income systems around the world performed against retirement preparedness. Malaysia was not the only country grappling with the issue. Countries around the world struggled with the socio-economic and financial effects of ageing populations [6]. It was recognized that financial security in retirement could impact not only the individuals and societies, but also the nation as a whole. Malaysia is expected to have over five million citizens over 60 years old by 2030. By 2050, the number of citizens over 60 will grow to 10 million [2]. Being an ageing population, long term sustainability in the retirement system is crucial. There are still many Malaysians without sufficient pension savings on top of the Employees Provident Fund [7]. In a survey conducted by Social Security Research Centre (SSRC) on 518 respondents aged 40 and