FOR many Malaysians, retirement is no longer defined by age, but by financial readiness. The question is no longer simply when to retire, but whether retirement is financially possible at all.
Sun Life’ survey “Retirement Reimagined: Asia’s Retirement Divide” found that nearly two thirds of Malaysians (64%) expect to continue working beyond the traditional retirement age. For many (63%), this is driven by the need for additional income to support daily living expenses and long-term financial security.
This reflects a broader shift in how Malaysians are approaching the golden years. What was once seen as a clear finish line has become far more fluid and personal. For some, work longer is a conscious decision shaped by passion and fulfilment. For others, it is a financial necessity shaped by rising living costs, longer life expectancy, and ongoing family responsibilities.
This pressure is especially apparent among the sandwich generation, who are caring for aging parents while supporting children of their own. When immediate family needs take priority, long term financial planning often be pushed aside. Our survey found that 43% have had to scale back their lifestyle expectations, while 35% have postponed leaving the workforce due to these obligations.
Financial security remains one of the strongest factors shaping how Malaysians view their later years. Among those who feel optimistic about their future, many point to financial security and the freedom it brings. By contrast, those who feel less confident are often concerned about financial security and their ability to continue supporting their loved ones.
This is where financial preparedness makes all the difference. Nearly one third of respondents admitted they do not make any long-term financial plans, while another 26% only begin preparing within two years of leaving full time work. It is therefore not surprising that confidence remains low, with just 15% saying they feel very confident about their future plans. Early planning and building financial resilience early is one of the most important steps Malaysians can take to give themselves greater choice later in life.
Attitudes towards aging and work are also evolving. More Malaysians want greater flexibility and control over when they step away from their careers, rather than bound by a mandatory retirement age. The survey found that 79% believe retirement should be a personal choice, reinforcing the view that later life should be shaped by readiness, not by a fixed number.
Health is another important part of the equation. Many respondents said improvements in their physical and mental wellbeing had influenced how they think about later life. At the same time, poor health remains one of the leading reasons some are forced to stop working earlier than expected. This underlines a simple reality – financial resilience and healthier lives go hand in hand.
Another emerging trend is the growing use on generative AI tools as a source of financial planning advice. Usage has more than doubled from 10% to 21% compared to the previous year, signalling how digital tools are becoming more embedded in everyday financial decision making.
While this can improve accessibility, retirement planning is too important to rely on convenience alone. Trusted guidance, sound judgement and long-term discipline remain essential when making decisions about future financial security.
Ultimately, the conversation around retirement is no longer just about reaching a certain age. It is about whether people have the financial stability, flexibility, and confidence to choose the kind of life they want in their later years. At Sun Life Malaysia, we believe financial security should not be left to chance. Our goal is to help Malaysians build the financial resilience they need so that working longer remains a choice, not a necessity.
This article is contributed by Sun Life Malaysia president and country head Ho Teck Seng (pix).
