In a survey on retirement conducted by Sun Life Malaysia, the life insurance and family takaful company discovered that 4% of respondents admitted that their Employees Provident Fund (EPF) savings had run out of money to withdraw.
According to a statement issued by Sun Life Malaysia on Sept 20, a startling 18% of respondents shared that they had already made special withdrawals, with another 14% sharing that they planned to do the same.
A sneak peak into Malaysians' preparation for retirement
The survey's results, released this year just before Hari Raya Aidilfitri, gave Raymond Lew, CEO, president, and country head of Sun Life Malaysia, a sneak peek into how many people in the nation were behaving and preparing for retirement.
Lew said, "It also serves as a good wake-up call for many."
According to the survey, there are still gaps in financial planning, particularly when it comes to accumulating enough financial resources. According to Lew's statement, many people may have underestimated the amount of money needed for retirement.
Cost of living is a significant problem for retirees, with 63% of those surveyed saying their biggest worry is running out of money before they can retire comfortably.
Sun Life Malaysia discovered that many of the 1853 respondents surveyed for the "Kembara Bersara" survey ranked their health and finances as their top two retirement-related concerns.
Those who have already retired are primarily concerned with:
Those who have not yet retired are mainly concerned with:
With over 88% of respondents saying they intend to rely on their EPF savings in their golden years, the survey also revealed that EPF savings are still the primary source of retirement funds.
45% of respondents reported investing in insurance and takaful for their golden years, making it the next most popular retirement source after EPF.
The many tools for retirement planning
This reflects the growing acceptance of insurance and takaful as a tool for retirement planning, which is encouraging. Although many financial instruments exist, insurance and takaful are flexible and convenient financial tools to safeguard your hard-earned money.
According to Lew, this will allow people to retire with the lifestyle they want or be financially ready for unforeseen events. Most of the 1853 respondents were adults and employed adults over 42 who intended to retire at age 60.
The survey also revealed that contrary to the widespread Asian belief that children should take care of them after retirement, 61% of respondents said they would prefer not to depend on them after retirement.
Other findings from the survey include:
96% of respondents said they wanted to care for their parents, with 74% saying they were doing it out of love and obligation for their parents;
22% of respondents said they wanted to work after retirement;
91% of respondents chose to retire in Malaysia, with 61% choosing the state where they currently live; Perak (16%); and Penang (14%), respectively.
23% do not plan to have children or are unable to have children, while
47% are open to living in retirement homes, with private retirement homes being their preferred option.
Source: The Edge Markets