Are you worried of old age? I worry about old age. I worry if I would have enough money to last me until the day I leave this world when I am no longer fit to work but still fit enough for morning walks and watching TV. I always tell my wife, we must plan well because there is no guarantee that someone would take care of us when we are old. Consider this. If you are 56 today and you are male, you need to have enough to last you another 22 years. Reason being, by 2040, the life expectancy of a male is 78 years old and for a female, it is 83. If you need just RM3,000 to live your usual life style, that’s RM792,000.
Comparing 1966 and today, the life expectancy rate has increased from 63.1 to 71.9 years for male, and 66 to 76.6 for female, from 1966 to 2010. by 2040, with the advances in medical science etc, it is projected that the life expectancy for male in 2040 is 78 years and 83 years for female. When would Malaysia be an ageing nation? Actually, that’s pretty soon. Within just 7 years, Malaysia would officially become an ageing population because by then, those over 65 years old would be more than 7.1% of the population. That’s a total of 2.74 million Malaysian population of over 65 years of age.
For this ageing population, the most important thing would be for all of them to own a roof over their head. It is true, the government may provide some assistance but for all 2.74 million? The right property would be essential. Perhaps full serviced apartments in secondary towns? Personally, I would not want to be staying in Kuala Lumpur City Centre when I am 65. Perhaps retirement homes models of UK or Australia? Seremban? Melaka? Ipoh? Penang is a good choice too but I am not sure of the affordability by then due to it being just an island and mainland is not exactly a great choice currently. Some of them would also be well taken care of by their children but if you look at what’s happening in a lot of countries today, including even Singapore, some of these older folks have to continue working. Instead of foreigners, the dish washers and cleaners at some eateries are these older folks.
Regardless of your age today, do plan ahead because the only thing you cannot replace is time and the only constant in life is change. You may rent your current property but do get a good property in a place which you most probably would love to retire to. Own at least one but better would be to own a primary property today and own another one in the place you want to be. Sell your primary property when you need to go home. I think by then, you may get RM792,000 for it. Happy planning and living your life.
written on 20 March 2014
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