HSBC Survey: Rich Need RM4 Million To Retire, Rest Of Us Need A Reality Check

The survey, targeting those with investable assets between RM436,225 and RM8.7 million, paints a picture of retirement planning that feels worlds apart from ordinary Malaysian reality.

Fernando Fong

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While HSBC’s latest survey tells us wealthy Malaysians need RM4 million for a “comfortable” retirement, many of us are left wondering: What about the rest of us?

Let that sink in. RM4 million. For most Malaysians earning average salaries, that’s not just a mountain to climb—it’s Mount Everest.

While the wealthy worry about maintaining their lifestyle post-retirement, many of us simply try to make it through the month with enough left for basic savings.

The stark reality? If the wealthy need RM4 million to retire comfortably, what chance do regular wage earners have?

Those of us making RM3,000-5,000 monthly, juggling house payments, children’s education, and rising living costs?

Selamat Pagi warga kota yg bekerja keras meneruskan kelangsungan hidup

Bukan untuk membeli bantal Hermes harga RM 5700 seperti Vivy Yusof pic.twitter.com/8t4p1cjU8P
— #TravelBubble 🌍 (@frhhh8989) November 5, 2024

Survey Shows RM436K Makes You ‘Wealthy’ in Malaysia

According to HSBC’s “Quality of Life 2024” report, Malaysians need slightly less retirement funds than those in Hong Kong and Singapore but more than those in India and Indonesia.

About 73% of wealthy Malaysians indicated they are actively planning towards their retirement goals.

Linda Yip, Head of Wealth and Personal Banking at HSBC Malaysia, stated: “Savings alone may be insufficient, and this is where financial planning and making the right investments and protection decisions is imperative.”

The group’s report was completed after surveying over 11,000 wealthy individuals across 11 markets, including Malaysia.

Wealthy individuals are defined as those with investable assets valued between USD100,000 (approximately RM436,225) and USD2 million (approximately RM8,745,000).

Yang dikata tak berapa kaya tu pun masih lebih kaya daripada 80 peratus rakyat yg lain. Bayangkan jela.

Siap ada yg reply t20 kelantan jadi b40 kl. Betapa bencinya orang kaya kepada org miskin. Dia tak bandingkan kelas dia dengan T1, tapi nak konon sama susah mcm B40. https://t.co/Q7lugXFI2I
— Haikaru-san (@kosakosong) October 1, 2024

When Retirement Planning Is a Luxury, Not a Choice

The survey speaks of “comprehensive financial planning” and “right investment decisions”—sound advice, indeed.

But when your salary barely covers necessities, what’s left to invest?

When medical inflation rises faster than your pay increment, how do you prioritize retirement savings over today’s needs?

Perhaps the most sobering thought isn’t the RM4 million figure itself but the growing wealth gap it represents.

While some plan their “comfortable retirement,” others wonder if retirement will ever be an option at all.

The question isn’t just “How much do we need?” but “How do we survive in a system where comfortable retirement seems reserved for the wealthy?”

55% of Malaysians spend their entire salary every month, meaning no savings.

Pretty bleak, but at least no increase from last year.

Biggest issue is probably income, but ppl need to realise if they have spending issues too pic.twitter.com/kvtlUYVNkT
— Emir | The Millennial Finance (@themillennialf_) October 26, 2023