KUALA LUMPUR, May 22 — Living inheritance is a cause for concern for retirees in Malaysia where 63 per cent of retirees are worried about not being able to support family or friends financially, according to an HSBC report.
It said Malaysia has the highest percentage of concern for this concern in the world, followed by Brazil and Mexico at 58 per cent, while Singapore (54 per cent).
A total of 54 per cent Malaysians are also concerned of being reliant on family or friends for financial support, the HSBC report entitled “The Future of Retirement Choices for Later Life” said.
Despite no longer being in paid employment, it said 86 per cent of Malaysian retirees would continue to provide regular financial support to at least one family member (including a spouse) and friends, including their adult children (above 16) and grandchildren, while some support their parents.
In this category, Malaysia records the highest percentage in Asia, followed by Indonesia (83 per cent), and India (80 per cent), while Singapore is slightly lower at 59 per cent, it said.
The HSBC report said wealth is already being passed down the generations with 39 per cent of Malaysian retirees regularly giving grown-up children, and 21 per cent doing the same for their grandchildren.
It said 87 per cent retirees in Malaysia have been unable to realise one of their hopes and dreams since retiring, higher that Asia’s average of 80 per cent and global average of 73 per cent.
The report said only 24 per cent of retirees semi-retired before fully retiring, while over 64 per cent working age people were planning to semi-retire before they stop work completely.
“Attitudes towards spending and saving vary across the world. When considering whether to spend all their money or set aside for the next generation, 67 per cent of working-age Malaysians take a balanced view, believing it should be better to spend some of their money and save some to pass on to their children,” it said.
However, 19 per cent think it is better to spend all their money and let their children create their own wealth, while 15 per cent feel it is better to save as much money possible to pass on to the next generation.
Despite an overall preference for spending, 83 per cent working Malaysians expect to leave an inheritance to their children but only 37 per cent 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, including continued financial support for their loved ones.
“Retirees today may even need to generate additional income to cope with the rising costs of their own requirements such as healthcare or to ensure they can still refill the inheritance pots they intend to leave with their children.
“As Malaysian families become more mobile and international, spending their retirement in two or more locations is an increasingly common goal,” he said, adding that the costs of maintaining such a lifestyle could be daunting as people spend for travel, varied costs and of living and property.
The report findings were based on an online survey of more than 16,000 people in 15 countries, conducted by Ipsos Mori in August and September 2014. — Bernama
