{"id":9060,"date":"2016-10-20T06:33:43","date_gmt":"2016-10-19T22:33:43","guid":{"rendered":"http:\/\/www.comparehero.my\/blog\/?p=9060"},"modified":"2026-03-27T10:20:36","modified_gmt":"2026-03-27T02:20:36","slug":"malaysians-you-can-do-better-retirement-2","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/lifestyle-finance\/malaysians-you-can-do-better-retirement-2.html","title":{"rendered":"To Malaysians, From Malaysians: Do Better For Your Retirement"},"content":{"rendered":"

\"my_dobetterforyourretirement\"<\/a><\/p>\n

Ongoing arguments about the rising cost of living, stagnant wage growth, unhealthy levels of debt per household, and unemployment issues continue to heat Malaysians up on daily basis. However, it seems that we are still not shaken by the fact that the majority of Malaysians are not financially prepared<\/strong><\/em> to survive once our main income source is crippled by various reasons such as a sudden job termination, retirement, permanent disability, and more. \u00a0\u00a0<\/span><\/p>\n

It isn\u2019t a matter to take lightly. Many Malaysians are suffering on a day-to-day basis whether they have any retirement savings to lean on, or not.<\/span><\/p>\n

See also: Imagine Being Able to Retire Rich, Instead of Broke and Poor<\/a><\/span><\/strong><\/span><\/p>\n

So the content team of CompareHero.my\u00a0embarked on a little mission to interview Malaysians off the street (literally). We visited various locations within Klang Valley and met with Malaysians of all walks of life. Some tales are extremely sad and heart wrenching, while others give all of us a glimmer of hope. Here are a few that have agreed to share their story with our readers and this is what they have to say when we asked them about their retirement journey:<\/span><\/p>\n

Moorthy used his retirement savings for property investment <\/strong><\/span><\/h2>\n

\"retirement\"<\/span><\/p>\n

Moorthy, who used to work in the private sector, had used all of his EPF retirement savings to buy a property when he retired at the age of 55. Ten years on, at the age of 65, he is living with his son and daughter who are supporting and taking care of him.<\/span><\/p>\n

\u201cBack then, I bought a property to stay with my family but my daughter had a problem dealing with her own finances, so we had to liquidate my asset,\u201d – Moorthy.<\/span><\/strong><\/p><\/blockquote>\n

Now with all his retirement savings utilized and the property <\/span>gone, Moorthy has returned to the workforce as an investment broker to sustain his living expenses and stay with his children.<\/span><\/p>\n

According to HSBC Bank Malaysia\u2019s latest survey report<\/a> on retirement, life expectancy in Malaysia has grown, with the average male living until age 72 and female to age 77. That could mean another 17 years living in retirement, should a man or woman retire at age 55.<\/span><\/p>\n

\u201cWorking age Malaysians may desire to retire at 55, but it may be unrealistic given increasing life expectancy and the need to fund a longer period living in retirement,\u201d \u2013 Retirement Realities Report, HSBC Bank Malaysia.<\/span><\/strong><\/p><\/blockquote>\n

Between 2012 and 2014, the share of household income from property and investment grew from 9.7% to 11.4%. This shows that Malaysians are increasingly depending on property investment for income placement.<\/span><\/p>\n

\u201cThe ability to provide a significant financial legacy is hampered by economic factors, such as the need for parents to help their children own a home. Given the current Malaysian property prices, fresh graduates or young working adults may not be able to afford to buy their own home,\u201d HSBC\u2019s report pointed out.<\/span><\/p>\n

With the surging property prices in main cities, parents are likely to step in to help fund their children\u2019s home purchase, often using their retirement funds or EPF savings, which may lead to insufficient funds to see them through old age later. Case in point, Moorthy\u2019s eye-opening story.<\/span><\/p>\n

Moorthy represents many Malaysians within the M40 income bracket, banking on their property as an ideal investment alternative given the appreciation in property prices over the past four years before the market went frigid.<\/span><\/p>\n

But this also sheds light that as children, we too have to uphold our responsibilities and aim to become as financially independent as possible. Our parents will naturally want to rescue us from any bad situation and save the day, but should they forego all their hard-earned EPF savings to do so?<\/span><\/p>\n

With all respect to the fact that parents will always have the instinct to help out their children, it is time for the rest of us to be more independent and polish our financial skills as solid<\/strong> as possible.<\/span><\/p>\n

It is somewhat frightening to find out that many young adults and fresh graduates are still relying on their parents financially, including paying for their down payment on property and cars, to pursue their lavish lifestyle, and also help to start their own business. With that being said, we should be taking care of our parents and elders instead of the other way around.<\/span><\/p>\n

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KEY TAKEAWAYS<\/span><\/h3>\n