Assessing Islamic Financial Planning Literacy Among Civil Servant Retirees

Islamic financial planning literacy is crucial to assist the government servants accomplish their financial security in their golden year to plan and save for retirement. This study aims to investigate the literacy of Islamic financial planning on the readiness of government servants for retirement. A quantitative survey using a standardized questionnaire and SmartPLS 4.0 analysis on 386 respondents was gathered. It was found that financial knowledge influences Islamic financial planning literacy and retirement readiness with saving attitude as the significant factor. Thus, Islamic financial planning literacy is a mediating variable between financial knowledge and saving attitudes towards retirement preparedness. The need for special financial literacy interventions targeting government retirees to improve the financial decision and retirement planning literacy of staff is critical. This study implies the importance of policymakers and financial education professionals to improve knowledge and outcomes in retirement planning. Future studies on the effectiveness of tailored financial literacy programs in enhancing Islamic financial planning among government servants is required.