More Malaysians planning for retirement early

According to a survey, Malaysians are planning for their retirement at a younger age. The AXA Life Outlook Index survey was conducted in eight key Asian markets – China, Hong Kong, India, Indonesia, Malaysia, Singapore, the Philippines and Thailand – to measure optimism and confidence level on four core aspects of life, namely career, family, health and retirement. The survey revealed that the average age to start retirement planning for Malaysians is 34, while the regional average age is at 36. In comparison, the 2007 survey conducted two years ago had indicated that Malaysians started planning at 37.
More respondents of the biennial survey are also aware of the importance of retirement planning, with the rate of people who don’t plan dropping to 7% compared to 12% in 2007. Chief Marketing Officer of AXA Affin Life Insurance Bhd Nicholas Kua says that given the current economic condition, Malaysians generally are taking a much more positive attitude towards retirement planning. However, the gloom in global economy has cast a shadow on Malaysians as the Life Outlook Index registered a 9.5% drop to 59.9% of Malaysians optimistic about life in general, second only to our southern neighbour Singapore. People in India and the Philippines are the most optimistic in terms of general outlook in the near next 12 months.
The survey showed that the aspect of life with most impact in the overall life outlook was one’s career. Job satisfation rate of Malaysians has fallen to 23% from 36% in 2007. “The result may be influenced by uncertainties in the economy, coupled with rising unemployment rate expected to touch 4.5% from 3.1% last year,” says Kua, adding that these factors resulted in respondents placing importance on career and retirement before family and health. “It is evident Malaysians are shaken up by the global economic gloom and they are now acutely aware that they need to focus on some factors which they might have paid less attention to in the past years when the economy was much better.” Despite the pessimism, more Malaysians (60% of respondents) still plan to have children with half of that total wanting to have more than three kids.
The survey also showed that more Malaysians are opting to invest in more conservative products offering protection as well as saving. 67% of Malaysians – more than in any other market surveyed – say they prefer insurance products with protection and saving features, rather than products offering higher returns but carry higher risk. More Malaysians are planning to buy life insurance products, at 45%, versus 26% in 2007.