53% of Malaysians worried about retirement

Following reports that Malaysians are not financially ready for retirement, many locals are concerned about whether they will have enough savings to last them comfortably after they retire.

According to an AIA survey on Middle Class Hopes and Aspirations: the ASEAN Region, 53% of respondents in Malaysia are worried about their retirement expenditures.

This figure was well above the global average of 44%.

The survey, which interviewed 3,000 self-identified middle class individuals from six ASEAN markets including Singapore and Thailand, identified the average savings figure for retirement desired by respondents in Malaysia was US$583,380.

The sum was beaten only by interviewees from Singapore, who estimated their retirement expenditures would reach around US$898,330.

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Unsurprisingly, Singapore respondents were also cited as being the most worried about saving for retirement, with 55% of them stating it was a key challenge.

The survey also highlighted the presence of an expectation that future generations will continue to be caretakers of their families across all markets.

A majority (70%) of the middle class believed that children should be responsible for financially supporting their parents in their old age.

“Perhaps one of the most striking observations from the survey is that in a region where a strong work ethic is a way of life, having good health is hands down the most important goal in life for the middle class across the six markets surveyed,” Ng Keng Hooi, regional chief executive of AIA, said.

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