KUALA LUMPUR, Sept 19 — Malaysians are generally still keen to retire early and leave an inheritance to their children, according to a study by HSBC Bank (M) Bhd.

In a statement today, it said Malaysians generally expect to retire on average at the age of 55, earlier than their parents who retired at 57, while 78 per cent of retirees in Malaysia expect to leave an inheritance to their children.

“Today’s fast-paced, dynamic and demanding work environment understandably drives the ambition to retire early and relax.

 “However, many people still push back legacy planning until they think they are ready to retire, by which time it is too late to save adequately,” said Lim Eng Seong, Head of Retail Banking and Wealth Management, HSBC Bank Malaysia.

The study also shows half of retirees in Malaysia who have not achieved their hopes and aspirations for retirement believe this is because they have less money to live on than they expected.

“The gap between this expectation and reality can only be bridged by adequate retirement planning, “ said HSBC.

It added more than a quarter of retired people in Asia do not prepare adequately or at all for a comfortable retirement, with 58 per cent of those people only realising the inadequacy after retiring.

Many working people typically assume that their expenses will fall once they enter retirement.

However, the HSBC study shows that one third of Malaysian retirees saw their outgoings either stay the same or increase on retiring.

“The family is another factor that will continue to be a major consideration in retirement planning. Funding dependents is more common in Malaysia than the global average, undertaken by 67 per cent of today’s retirees,” it added.

This factor should be noted as it could have a significant impact on one’s retirement income if not taken into consideration when planning for retirement. — Bernama