Friday, March 22, 2013

Malaysians Start Financial Planning at Age of 34 - HSBC Bank


KUALA LUMPUR: A recent survey by HSBC Bank Malaysia Bhd found that, on average, Malaysians expect to live 17 years in retirement but that their savings would only last 12 years.

          The future of retirement: a new reality report is based on a survey of over 15,000 people in 15 countries. It highlighted that 43% of Malaysians felt that they were not adequately prepared for retirement, with 10% taking an even bigger risk of not being prepared at all.
          HSBC head of retail banking and wealth management Lim Eng Seong said people are still running the risk of living long beyond their retirement savings. In a statement yesterday, he said: “Many Malaysians have begun to place importance on retirement planning and savings.”
        “This is an improvement from the last survey in 2011 where 68% of respondents were worried that they would not be able to cope financially in retirement.” The study also found that Malaysians understood the importance of preparing for retirement from a relatively young age with the average age for when they started planning financially at 34.
        When asked how much money they felt was needed to live comfortably, both now and when they retired, about 81% of the respondents said a sensible proportion of “working age” income would be required for a comfortable retirement.
        Meanwhile, 68% of the respondents cited financial hardship around retirement as their most common concern whereas 59% of them were concerned about poor health around retirement.
       The survey also reported that 59% opted for the longer-term goal of retirement with only 37% choosing to save for the short-term goal of a holiday.


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