Rich Malaysians Want RM3.6Mil For Retirement?

While many Malaysians earn barely enough to make ends meet, their more affluent countrymen are putting aside millions to ensure they enjoy their golden years. A recently concluded survey by global financial institution HSBC shows that at least half of wealthy Malaysians already have a plan in place to meet their financial needs post-retirement.

HSBC refers to them as “power planners”. This was reported in the second edition of its Global Quality of Life Report. For each of these wealthy individuals, nothing less than US$830,000 (RM3.61 million) is adequate. About 73% of them say they are already on track to meet their retirement goals.

 

Source: https://en.wikipedia.org

On average, wealthy Malaysians are also more committed to ensuring the success of their retirement plan than their peers elsewhere. The survey shows that 84% of Malaysians already have a comprehensive financial plan for retirement, compared with the global survey average of 72%.

The HSBC survey covered 11,230 affluent individuals across 11 markets, out of whom 499 are Malaysians. Only those who have assets of US$100,000 to US$2 million (RM434,000 to RM8.68 million) were covered in the survey.

The survey was conducted to explore what quality of life means for affluent individuals across different generations and investigated the relationship between physical and mental wellness and financial fitness. Affluent Malaysians also worry a lot about physical health, the cost of healthcare and inflation. A total of 44% rank having adequate insurance coverage as a top financial goal. On average, affluent Malaysians put aside at least 24% of their monthly income towards investment. A survey early this year by another financial institution, Hong Leong Bank, showed that only 12% of Malaysians considered themselves well-off.

It all depends on lifestyle. Retirement lifestyle and legacy funds for the next generation are the key concerns. In essence, if you have RM10k per month as “passive” income you could be fine. That assumes you are debt-free and have a dwelling place. But not many are in this situation because of Covid. And so may depend on the next generation for some form of financial support. As you grow older, health issues and costs become central. So, if you have adequate insurance you may have mitigated the risk. No matter what, do try to enjoy life and make every moment count.

Reference:

Rich Malaysians want at least RM3.6mil in the nest egg, FMT Reporters, FMT, 

4 November 2024