KUALA LUMPUR: A total of 70 per cent Malaysian consumers believe that the health and retirement benefits provided by their employers are insufficient to meet their future needs, according to a survey.
Manulife Malaysia chief agency officer Lee Tat Fatt said this becomes particularly concerning for the ageing population, as they may face significant financial challenges if they are unable to secure adequate health insurance coverage.
While it is common for customers to choose health protection up to the age of 70, he said this practice creates a substantial gap in health coverage during the critical post-retirement years given that the average life expectancy stands at 74.8 years.
He said this situation emphasised the growing necessity for health insurance that extends beyond the coverage term of 70 years.
This trend is further underscored by Manulife's Asia Care Survey 2024, which revealed that Malaysians are increasingly concerned about rising healthcare costs and their ability to achieve their retirement savings goals.
The survey, conducted among 1,038 local consumers, found that these concerns are shaped by the widening gap between their long-term savings aspirations and their actual savings expectations.
The survey also revealed that there has been a shift in family financial dynamics whereby 40 per cent of respondents do not expect their children to provide for them in their old age.
Another 49 per cent of Malaysian couples among the respondents said they do not plan to start a family or do not want to have children, while more than 60 per cent said that they are looking to delay their retirement age due to financial responsibilities.
Lee said that long-term financial goals impacted by financial concerns such as lack of savings, reduced income, unexpected medical cost, too much debt and insufficient health coverage.
He added that while Malaysia's increasing life expectancy is a positive sign, it also highlights the growing need for comprehensive health protection and financial resilience for our aging population.
"To address healthcare inflation, it is crucial to have a suitable insurance plan in place to ensure the well-being and financial resilience of Malaysians in addressing future health and medical needs," he said in a media briefing on the survey today.
According to Lee, the ageing population is a growing concern in the country as people are living longer and facing the challenge of sustaining the rising cost of living over time.
Millennials (23 - 38 years old) and Generation X (44 – 59 years old), who now form much of the workforce, are part of the "sandwich generation," balancing financial responsibilities for both their parents and their young ones.
The rising cost of living and inflation are expected to continue evolving alongside this ageing generation in the next 20 to 30 years.
Lee said relying solely on Employee Provident Fund (EPF) has proven ineffective as one out of four Malaysians deplete their savings within the first five years.
"Manulife Future Shield offers a comprehensive solution that addresses life insurance, retirement planning, and medical reimbursement, ultimately enhancing health outcomes," he added.
It is a whole life insurance plan that provides coverage for death, total and permanent disability (TPD), accidental death, and old age disability (Senior Care Benefit).
It also has a maturity benefit where the remaining face amount of the product will be payable in one lump sum when the policy reaches maturity at age 99.