KUALA LUMPUR—Middle-class Malaysians wish to have about RM1.9 million when they retire although their Employees Provident Fund (EPF) savings will in reality be only a smidgen of that.
The "Malaysia's middle-class hopes and aspirations" survey by AIA Bhd last year, had 500 respondents, more than half of whom expressed worry about their savings after retirement.
AIA Bhd chief marketing officer Thomas Wong said the RM1.9 million was the average figure given by the respondents, 53 per cent of whom think they would never achieve the target.
"It is possible to have RM1.9 million when you retire. Start saving as early as possible and discipline yourself," Wong said yesterday.
"Seek advice from financial planners and find out how much you would need to invest over 40 years to achieve the target.""
He said the average EPF savings a person would have upon retirement is between RM100,000 and RM200,000.
"The average Malaysian's lifespan is 75 and the EPF savings will be enough to cover 15 to 20 years' worth of expenses," he said.
"You can achieve that RM1.9 million if you start saving early."
Wong advised parents and those planning to have children to start preparing for their children's education.
"Middle-class parents believe that education is important so their children can have a better future," he said
"Tuition fees for a business degree at a local private institution cost between RM50,000 and RM90,000 per student. Fees at universities abroad cost more than five times in Malaysia."
The survey found that 91 per cent of parents want their children to obtain a banchelor's degree.
National Population and Family Development Board's deputy directorgeneral (policy) Dr Anjli Doshi said Malaysians must have a postretirement plan.
"If a person is still productive, he or she can look for other work opportunities and get an income to sustain their life rather than sitting at home waiting for money from the government and their children,"she said.
"Learn how to live within the limits and manage expenses by identifying what you need instead of what you want."
AIA also carried out the survey in five other Asean countries with about 3,000 respondents.