The demand for elderly care is expected to rise as Malaysia moves towards becoming an ageing nation. By 2043, 14 per cent of the population will be over 65.
Private retirement homes, assisted living facilities or premier retirement villages are expected to fill the gap for those seeking living arrangements after retirement or once they are unable to live independently.
But the price of such facilities can set one back by a few thousand ringgit every month, while more luxurious retirement homes cost much more, ranging from RM6,000 to even RM10,000 a month as they include medical services, specially crafted menus to meet the dietary needs of seniors and resort-style facilities. They also provide a range of leisure activities to keep seniors occupied.
However, Employees Provident Fund data shows that generally, one in four Malaysians finish their savings within five years of withdrawal, so living out their golden years in a comfortable private retirement home may be out of reach for many.
The average monthly cost of a private retirement home in the Klang Valley stands at RM2,500 to RM3,000, but this could vary depending on the location and facilities offered, said The Ascott Limited area general manager — central region, Sharon Ang.
The company manages Domitys Bangsar Kuala Lumpur, which offers secure residences that cater to seniors who want an active lifestyle. It encompasses apartments and extensive leisure services.
Currently, the monthly senior rate for long-term stay at Domitys, for a "One Bedroom Premier" is RM6,450 plus a month, which is inclusive of breakfast and daily activities.
Over the next 10 years, we can expect to see a rise in the number of retirement homes in Malaysia, but inevitably, costs will be higher, said Ang.
"The rise in retirement villages aligns with a shift in attitudes towards ageing. Many retirees seek environments that prioritise health, security and convenience," she said.
These establishments also offer healthcare services and transportation options which address the evolving needs of the ageing population.
This trend is further fuelled by family dynamics, as adult children and retirees alike see the appeal of supportive, community-based living arrangements that enhance quality of life during the later stages of adulthood.
"Overall, the popularity of retirement villages reflects a cultural shift towards valuing and prioritising a fulfilling ageing experience," said Ang.
At Green Acres Retirement Village in Ipoh, Perak, the concept of "independent living" is the main draw.
The facility offers one or two-bedroom "villas" for senior citizens who are mobile and self-reliant and prefer to have their own space and privacy, while enjoying community living within a fully equipped retirement village.
The individual villas ensure residents can live self-sufficiently whilst having communal spaces to socialise with peers and opportunities to participate in leisure activities.
"It's based on a lease deposit concept and our seniors rent a villa for life," said Green Acres general manager James Pany.
A one-bedroom villa for example, can be leased for life at RM347,000 and the resident moves in with his furniture and appliances. A monthly maintenance fee is applicable for each villa.
The lease deposit itself is refundable (subject to terms and conditions) should the resident change his mind about residing there or it will be given to his nominee should he die while residing there.
It's ideal for elderly couples looking to downsize as they can sell their existing property which may be too much for them to manage and invest in retirement living where all their needs are met, said Pany.
All 54 villas at Green Acres have been taken, he added, and another 28 villas are currently under construction, 75 per cent of which have been booked.
"In the long run, this concept would be more cost effective than paying monthly rates at a retirement home which can be as high as RM6,000 onwards."
ReU Living Sdn Bhd chief executive officer Anna Chew said retirement homes have not proven to be an attractive concept in Malaysia.
In fact, there has not been much uptake for such facilities, as there is no reason to move into such a facility if one does not need care.
Chew said professional care services in an assisted-living facility, however, are becoming more attractive as it is difficult to hire good professional help and very costly to have the same team of professionals offering around-the-clock care and services that come with ageing well.
ReU Living offers assisted-living services, whether for those needing recovery care after a stroke or heart attack, or seniors whose advanced age makes it unsafe for them to stay at home alone.
Care services for assisted-living starts at RM10,000 per month which is all-inclusive, she added.
There are many privately-run retirement homes in the Klang Valley, but independent living or retirement living is a costly lifestyle, said Chew.
Five years ago, R. Krishnaswamy sold his double-storey home in Petaling Jaya and moved into a two-bedroom apartment with his wife.
Part of the proceeds from the sale of their house will go towards funding their future care in a retirement home.
Krishnaswamy, 75, anticipates that both he and his wife would need to move into a retirement home in their 80s or once they are unable to care for themselves.
Based on their initial survey of retirement homes in the Klang Valley, they anticipate the cost to be between RM4,000-RM6,000 a person, per month.
His wife, a retired teacher, has a pension, but it doesn't cover the amount stated above, while Krishnaswamy has only his EPF contributions to see him through his golden years.
It was this reason that led the couple to downsize and sell their house so they would have extra funds to see them through retirement.
The couple, who are childless, are even looking at aged care homes in India as they believe they can stretch their funds further there given the exchange rate.
"We don't know what the future holds but we hope we can retain some level of comfort in our later years," he said.
Malaysian Healthy Ageing Society president Professor Dr Shahrul Bahyah Kamaruzzaman said private retirement homes are commercial projects undertaken by privately owned companies and are targeting specific income groups.
"Given that 80 per cent of the population is from middle and lower income groups, it is hoped that developers would look into more affordable options for the population. The government could support such initiatives via incentives," she said.
Most importantly, retirement homes must ensure care is provided by trained caregivers.
Dr Shahrul said in general, for Malaysians relying solely on EPF savings, it is not enough to cover the costs of retirement homes, especially considering the high monthly fees.
However, with proper financial planning, including personal savings and investments, along with exploring other retirement options such as long-term care insurance, government-assisted housing programmes or community-based living arrangements, it may be more feasible.