2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective

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date 2018-12-13
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originalfilename MATHEMATICAL MODELLING OF INTEGRATED BARAKAH PENSION PLAN MODEL IN ISLAMIC WEALTH MANAGEMENT PERSPECTIVE (PHD_2018).pdf
person Nik Hazimi Mohammed Foziah
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spelling 15608 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15608 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) 264 Copyright©PWB2025 MATHEMATICAL MODELLING OF INTEGRATED BARAKAH PENSION PLAN MODEL IN ISLAMIC WEALTH MANAGEMENT PERSPECTIVE (PHD_2018).pdf Nik Hazimi Mohammed Foziah Mathematical Modelling Integrated Barakah Pension Plan Model Islamic Wealth Management Perspective Pension plans – Islamic perspectives Wealth management – Islamic finance Retirement income – Islamic law Islamic financial planning Mathematical models – Islamic finance 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective 2018-12-13 Ageing population has become a global phenomenon. Having a long life is great, but it could turn into a nightmare if not prepared properly, especially for retirement savings. In fact, majority retirees in Malaysia had relied on mandatory retirement scheme organized by Employees Provident Fund (EPF), meanwhile the funds were estimated to deplete just within 3 years after being given to the retirees. Alternatively, the EPF had provided with a less popular retirement benefit option such as an annuity to discipline the retirees to make monthly withdrawals. Nevertheless, the retirement funds are still insufficient to cover the monthly payments according to the projected life expectancy of a human being in Malaysia, until 75 years old. Therefore, this study aimed to apply the concept Islamic wealth management mentioned in Quran in optimizing existing annuity models by constructing a more comprehensive pension plan model to be benefited by all income level and been accepted by the EPF. The study examined the available retirement schemes in Malaysia to identify their strengths and weaknesses as for reference to the new model. A mathematical formula induction has derived to optimize the conventional annuity model, named as Barakah model. The simulation results of accumulated and de-accumulated retirement wealth from conventional annuity and Barakah model were generated by static and dynamic approaches to measure the effectiveness of the model. A new premium life table of medical Takaful plan was formulated to be adjusted as an integration model for the Barakah pension plan. The validation of the model involved 7 selected institutions comprise of EPF, Social Security Organization (SOCSO) and Takaful operators. The simulation results showed that using the Barakah model in accumulating retirement funds had successfully optimized the existing model up to 3 per cent from total retirement wealth. However, the model had given a great impact in de-accumulation phase by sustaining the annuity period more than 75-year-old instead of 65 years old in conventional model. By using SPSS-AMOS, multiple linear regressions had shown the coefficient of determination (R2=36.4 per cent). Similarly, only one independent variables, lump sum benefit variable did not significantly affected on public acceptance variable (β=0.067, p-value=0.410). While the other independent variables had significantly positive affected on public acceptance with (β=0.140, pvalue= 0.000) for monthly payments, and (β=0.290, p-value=0.001) for re-contribution during retirement, and (β=0.100, p-value=0.062) for Takaful benefits. Most of the institutions agreed that the existing retirement system should be renovated and the proposed model of integrated Barakah could be an ideal model to be implemented by the authorities likes EPF. The integrated Barakah pension plan model could overcome the problem of inadequacy of retirement wealth and provide with more sophisticated additional Takaful benefits to the retirees irrespective of income level. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis
spellingShingle 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective
state Terengganu
subject Pension plans – Islamic perspectives
Wealth management – Islamic finance
Retirement income – Islamic law
Islamic financial planning
Mathematical models – Islamic finance
Dissertations, Academic
summary Ageing population has become a global phenomenon. Having a long life is great, but it could turn into a nightmare if not prepared properly, especially for retirement savings. In fact, majority retirees in Malaysia had relied on mandatory retirement scheme organized by Employees Provident Fund (EPF), meanwhile the funds were estimated to deplete just within 3 years after being given to the retirees. Alternatively, the EPF had provided with a less popular retirement benefit option such as an annuity to discipline the retirees to make monthly withdrawals. Nevertheless, the retirement funds are still insufficient to cover the monthly payments according to the projected life expectancy of a human being in Malaysia, until 75 years old. Therefore, this study aimed to apply the concept Islamic wealth management mentioned in Quran in optimizing existing annuity models by constructing a more comprehensive pension plan model to be benefited by all income level and been accepted by the EPF. The study examined the available retirement schemes in Malaysia to identify their strengths and weaknesses as for reference to the new model. A mathematical formula induction has derived to optimize the conventional annuity model, named as Barakah model. The simulation results of accumulated and de-accumulated retirement wealth from conventional annuity and Barakah model were generated by static and dynamic approaches to measure the effectiveness of the model. A new premium life table of medical Takaful plan was formulated to be adjusted as an integration model for the Barakah pension plan. The validation of the model involved 7 selected institutions comprise of EPF, Social Security Organization (SOCSO) and Takaful operators. The simulation results showed that using the Barakah model in accumulating retirement funds had successfully optimized the existing model up to 3 per cent from total retirement wealth. However, the model had given a great impact in de-accumulation phase by sustaining the annuity period more than 75-year-old instead of 65 years old in conventional model. By using SPSS-AMOS, multiple linear regressions had shown the coefficient of determination (R2=36.4 per cent). Similarly, only one independent variables, lump sum benefit variable did not significantly affected on public acceptance variable (β=0.067, p-value=0.410). While the other independent variables had significantly positive affected on public acceptance with (β=0.140, pvalue= 0.000) for monthly payments, and (β=0.290, p-value=0.001) for re-contribution during retirement, and (β=0.100, p-value=0.062) for Takaful benefits. Most of the institutions agreed that the existing retirement system should be renovated and the proposed model of integrated Barakah could be an ideal model to be implemented by the authorities likes EPF. The integrated Barakah pension plan model could overcome the problem of inadequacy of retirement wealth and provide with more sophisticated additional Takaful benefits to the retirees irrespective of income level.
title 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective
title_full 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective
title_fullStr 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective
title_full_unstemmed 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective
title_short 2018_Mathematical Modelling of Integrated Barakah Pension Plan Model in Islamic Wealth Management Perspective
title_sort 2018_mathematical modelling of integrated barakah pension plan model in islamic wealth management perspective