The two objectives of this paper are to examine the effect of
financial literacy, risk aversion and expectations on retirement
planning; and, to investigate the effect of these antecedents on the
retirement portfolio allocation. Data was collected via a
self-administered questionnaire from a sample of 270 working individuals
in Kuala Lumpur, Malaysia. Logistic and ordered probit regressions were
employed to analyse the first and second objective, respectively.  The
results from the logistic regression indicate that future expectations
significantly influence the probability of planning for retirement.
Meanwhile, individuals with higher financial literacy and lower risk
aversion are more likely to hold risky assets in their retirement
portfolios. Subsequently, two-sample t-test and one-way ANOVA tests were
conducted to further examine the differences in financial literacy,
risk aversion and expectations, across demographic subgroups. The study
contributes to the literature by holistically incorporating the behavioral aspects that affect retirement planning and by exploring an
uncharted issue of retirement planning—namely, the retirement portfolio
allocation.