Retirement - Malaysian Worries Most

Some 63% of retirees in Malaysia worry about not being able to support their families, according to a HSBC online survey of more than 16,000 people in 15 countries. It said Malaysia has the highest percentage of financially insecure retirees in the world, followed by Brazil and Mexico at 58% followed by Singapore at 54%.

A total of 54% of Malaysians are also concerned of being reliant on family or friends for financial support, the HSBC’s report entitled “The Future of Retirement Choices for later life” said. It said 86% of Malaysian retirees would continue to provide regular financial support to at least one of their family members and friends, including their grown-up children and grandchildren, while some support their parents. In this category, Malaysia records the highest percentage in Asia, followed by Indonesia (83%), and India (80%), while Singapore is slightly lower at 59%, it said.

The HSBC’s report said wealth is already being passed down the generations with 39% of Malaysian retirees regularly giving to grown-up children, and 21% doing the same for their grandchildren. It said 87% of retirees in Malaysia have been unable to realise one of their hopes and dreams since retiring, higher than Asia’s average of 80% and the global average of 73%.

The report said only 24% of retirees are semi-retired before fully retiring, while over 64% of working age people were planning to semi-retire before stopping work completely. “The attitude towards spending and saving vary across the world.

When considering whether to spend all their money or set aside for the next generation, 67% of working Malaysians take a balanced view, believing it should be better to spend some of their money and pass the rest to their children,” it said. However, 19% think it is better to spend all their money and let their children create their own wealth, while 15% feel it is better to save as much possible to pass to the next generation. Despite an overall preference for spending, 83% of working Malaysians expect to leave an inheritance to their children but only 37% have actually received it, the report said.

On moving abroad upon retirement, Australia becomes the first choice, followed by New Zealand, Singapore and Switzerland. HSBC head of retail banking & wealth management Lim Eng Seong said in order to ensure a comfortable later life, retirees should consider wider financial commitments.

“Retirees today may even need to generate additional income to cope with the rising costs of healthcare or to ensure they can still leave some money behind for their children. The report findings was conducted by Ipsos Mori in August and September 2014.