K. Sasitharan.

LL.B(Hons)(Lond), ChFC, CLU, CFP

Senior Client Director
ReMark Malaysia Pte. Ltd
 Is retirement planning all about
Finance & Wealth Management
Health Insurance & Annuity
Estate Planning
You agree it is more than that!!!

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 Actual survey findings on Malaysians
attitude towards Retirement
Pre & Post retirees attitudinal views
What is IN & OUT of our control?

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 The Future of Retirement Project
(www.hsbc.com/retirement)

- The Retirement Scope Project

(www.retirement-scope.axa.com)

Thanks to HSBC & AXA for their effort 4

WHAT IS RETIREMENT?
Malaysians are typical of Asians in seeing
retirement as a time of rest and relaxation. Yet
when asked what they want to spend their time
doing in retirement, very few mention slowing
down, and many talk of travelling.
In general Malaysian are more likely than other
Asians to associate retirement with positive
feelings such as freedom and happiness, and
less likely to associate it with negative feelings.
As with people elsewhere, Malaysians say
family, friends and keeping fit are important for
a happy old age.

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The Future Of Retirement
HOW WILL WE PAY FOR OUR
RETIREMENT?
Malaysians tend to think that they should bear
the costs of their own retirement, just as many
other people in Asia do.
However, they are more likely than the Asian or
global average to believe that they will rely on
their children for care in retirement?
Compared with other Asian people, Malaysians
are more inclined to think that government
should pay for retirement by means of
compulsory private savings, and less likely to
think that the retirement age should be raised.

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The Future Of Retirement
EXPECTATIONS:
STATE PROVISION CONFIDENCE GAP
The proportions are lower in Malaysia, where the
survey shows 21 per cent of working people and 23
per cent of retirees believe the State should support
them in later life.
There is also a marked difference between the
working and retired populations confidence in
governments living up to this obligation.
Only 10 per cent of the Malaysian working
population feel government will bear this burden,
while 20 per cent of retirees believe the State will
bear the financial costs.

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The Future Of Retirement
HOW TO PROVIDE FOR THE AGEING
POPULATION?
3% of the working population and 32% of retirees
seeing enforced additional savings as their
favoured solution the majority option.
When considering other options:
24-27% would increase the retirement age,

11% across the generations would increase taxes ,

only 8-10% would opt for reduced state pensions.

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The Future Of Retirement
WHEN SHOULD WE RETIRE?
Malaysian people believe that both men and women
should retire at a relatively young age.
They are slightly less inclined than people
elsewhere to think that retirement should come at a
fixed age.
Asked what might motivate them to work beyond
the traditional retirement age, many more
Malaysians than the regional or global average
speak of having something meaningful or valuable
to do.

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The Future Of Retirement
 Retirees stopped working early, on average at
age 53 but would have willingly worked until 55.
Income could be the main motivating factor for
retirees wanting to retire later as those with
higher income have lower ideal retirement
age than average.
Working people expect to work later than their
elder, on average until 56 but dream retiring
earlier at 54
Female dreams to retiring earlier & actually
retire earlier than males.
The ideal & expected retirement age typically
increases with age

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 Nearly 2/3 of retirees retired prior to the legal
age.
Among these, a majority of retirement imposed
by employer, especially in the South part of
Peninsular Malaysia
Females retired less often than males prior to
legal age and were in particular less affected
by imposed early retirement

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 Currently 1/3 of retired people hold a paid job
after retirement
Half of those from South part of Peninsular
Malaysia
The situation will most likely change as more
than half of working people plan to hold a
paid job during retirement
Grandparenthood is
sometimes can be a full
time career without any
financial rewards!!!

Sasi

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 Majority of working & retired people approve of
raising the minimum retirement age, at most up to
age of 59
Among retired people, there is a large gap between
unskilled workers , who would approve this
measure and owners/top managers & other
managers more reluctant

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HOW DO OLDER WORKERS COMPARE
WITH YOUNGER ONES?
Malaysian employers tend to rate older workers less
favourably than younger ones.
These employers are also less likely than those
elsewhere to offer older workers appropriate
opportunities.
These employers are a little inclined to see the loss
of older workers as a positive than a negative

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The Future Of Retirement
DO EMPLOYERS AND EMPLOYEES
THINK ALIKE?
In Malaysia 64% of private employers say employees
should be able to work for as long as they are
capable of doing the job and in tune with this,
because 76% of ordinary Malaysian people think the
same.
Almost everywhere in the world, the largest
proportions of individuals and employers favour
enforced private savings over other means by which
governments can support ageing populations. But in
Malaysia, individuals are very likely to support the
enforced private savings, whereas the employers
support increase in the retirement age.

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The Future Of Retirement
SO HOW ARE MALAYSIAN PEOPLE
PLANNING, PREPARING AND INVESTING
FOR THEIR RETIREMENT?
In Malaysia, each of the four pillars of support for
later life (government, employer, family and self) is
regarded as contributing to retirement income
Overall, children/family is seen as the most
important contributor to retirement income ,
self is ranked as second most important,
government and employer share equal ranking
as least important

In Malaysia it is interesting that children/family is seen as

key by both high income and low income households, but
with the latter seeing government support as the second
most important option

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The Future Of Retirement
*
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The Future Of Retirement
Retirement Planning
- The Practical Approach

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 maintain pre-retirement standard of
living
be financially self-sufficient
improving lifestyle
managing wealth
passing on wealth
medical expenses

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 What are your retirement needs?
What are the available sources of
retirement income you have Planned so
far
To Identify other retirement resources
available if any...
Find Solutions that are achievable for
your retirement needs.

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RETIREMENT PLANNING
Sources of retirement income
EPF contribution + rate of return until retirement
Savings
Investment e.g. unit trust, real estate, etc
Life Insurance/Annuity

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RETIREMENT PLANNING
Planning Assumptions
Life style
Standard of Living (Income & Expenses)
Monthly savings capabilities
Accumulated financial assets that can be
liquidated (Assets & Liabilities)
Investment preference risk profile
Insurance plans details Insurance Needs
Analysis
Estate planning consideration Wills &
Trust

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RETIREMENT PLANNING
...is more than a numbers game, its is about your vision, lifestyle,
financial attitude & many other emotional factors.
What is within your control?
Your earning capabilities, attitude towards financial planning &
discipline in finances (spending vs. savings)
What is outside your control?
Interest rate, politics, government policies, whats your
neighbour or friends planning, etc
What is your life style?
Willing to change, modify or status quo
Idealistic or Pragmatic?
Your choice

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THANK
YOU

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