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Or should Malaysians look elsewhere for retirement?
For quite a number of young Malaysians, retirement may not be something they think of every day. Though for many of us young Malaysians, thinking about our future is not exactly the first thing we will think of. However, when we grow older, it’ll be too late for us to plan already.
According to a summarized article by iMoney Malaysia back in 2018, KWSP stated in the same article the average Malaysian should be able to live on a retirement fund of rm228,000. This is if the average Malaysian lives until age 75 years old.
This figure may change every year as currencies deflate each year. That means for now the average retired Malaysian may need that much retirement money to live. However, in 50 years, that rm228,000 is not going to be enough.
Take into consideration you may still have to pay for your electric and water bills, your internet bills, car petrol and maintenance. All those are money going out. You may or may not have money coming in. That’s why some retired people are still working a small job for an income to sustain their life.
The good side of retiring in Malaysia
It can be worth it considering how our government hospital is relatively cheap. We pay a nominal fee to see an outpatient GP. Surgeries and operations cost only a fraction of what private hospitals are charging. The only downside? Have a long waiting list before it’s your turn.
In Malaysia, basic needs are within reach. Not that other countries do not have basic needs within reach. But if you are to compare it with some other countries, Malaysia is pretty much all right. Not the best, but just all right.
Taxes aren’t exactly sky-high either like some other countries. I get that not everyone likes to pay taxes, but taxes are good for the country’s development. If you don’t pay your taxes, how is the country going to improve the infrastructure? Don’t be selfish.
It’s not worth retiring in Malaysia when the cost of basic needs keeps increasing when our salaries don’t. Quite some Malaysians have to take on a 2nd and 3rd job just to sustain themselves financially. Some others will invest their income wisely for retirement purposes.
The downside to retiring in Malaysia
I hate to say this but the downside to retiring in Malaysia is when there are very little to no budget options for basic needs. Take the UK, for example. In the UK, they have budget options for their everyday needs – with essentials costing as low as £0.30p per 500g of pasta. Convert that into Malaysian currency we will still be unable to see pasta that cheap (except when it’s close to its expiry date).
Another downside is that public transport is not as efficient as it should be. The developments for public transports in recent years have been improved, I can acknowledge that. However, the development leaves a lot more to be desired.
Walking from 1 destination to another is not practical for every location either. Our pedestrian roads are just awfully limited and under-developed. Some roads are just not pedestrian-friendly or bike-friendly.
Never mind having to pay for the public transports. It’s having a public transport line that’s well-connected and people-friendly is what matters most for a lot of us.
Is it worth retiring in Malaysia?
It’s good if you have retired with a lot of money. That much at least we all can agree on. However, if you don’t have money, it will mean that you will have to work till you drop dead. Anything to survive, you know…
Lydia is a content writer under Headliner by Newswav, a programme where content creators get to tell their unique stories through articles and at the same time monetize their content within the Newswav app.
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