According to HSBC’s Quality of Life Report 2024, affluent Malaysians estimate they need around US$830,000 (approximately RM3.61 million) to secure a comfortable retirement. This figure places Malaysia’s retirement expectations above India’s (US$390,000) and Indonesia’s (US$340,000) but still below those in Hong Kong (US$1.08 million) and Singapore (US$980,000).
In this survey, affluent individuals are defined as those with investable assets between US$100,000 and US$2 million. HSBC surveyed over 11,000 people across 11 markets, including Malaysia, to understand their retirement needs and expectations.
Confidence in Meeting Goals
About 73% of Malaysians polled feel financially on track to meet their goals. Interestingly, almost half (48%) of affluent Malaysians intend to continue working post-retirement, a bit higher than the survey’s average of 47%.
Linda Yip, HSBC Malaysia’s head of wealth and personal banking, emphasized the importance of building a solid financial foundation.
“Savings alone may be insufficient, and this is where financial planning and making the right investment and protection decisions is imperative,” Yip said.
She highlighted that affluent Malaysians dedicate nearly 24% of their monthly income to investments, underscoring the critical role of financial planning for retirement.
Power Planning for a Secure Future
HSBC’s report also revealed that one in two Malaysians have crafted a comprehensive financial plan for their future. Successful “power planning” as defined by the report, includes having a clear financial strategy (which 84% of affluent Malaysians report having), understanding the target amount (86%), regularly reviewing savings performance (88%), and following a consistent savings plan (86%).
Among the countries surveyed, Malaysia ranks second for “power planning” in retirement.
Key Concerns for Retirement
When it comes to concerns about retirement, affluent Malaysians expressed particular worry about declining physical health (44%), rising healthcare costs (40%), and inflation’s impact on their savings (38%).
Insurance is also a priority, with 44% of respondents ranking adequate insurance coverage as a top financial goal.
Additionally, 72% of affluent Malaysians focus on accumulating wealth, surpassing similar levels in Singapore (61%), Taiwan (61%), and Hong Kong (60%).
As Malaysia continues its journey toward becoming a high-income nation, the focus on thorough financial planning and investment underscores the commitment of many Malaysians to secure a comfortable retirement.
Source: here
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