21-05-2025
Sun Life's InsureLit survey debunks myths of legacy planning for retirement
RETIREMENT is often seen as the ultimate achievement in life—a hard-earned reward after years of dedication to work.
However, the lack of preparation and 'tidak apa' attitude towards retirement planning among Malaysians is a growing concern.
While the Employees Provident Fund (EPF) serves as the primary retirement savings for many, it may fall short, especially amid rising inflation and healthcare costs.
And this just scratches the surface, as there are still other aspects to consider when planning retirement.
Planning your future extends beyond retirement
An overlooked element of retirement planning is family legacy planning. This aspect ensures hard-earned assets, cherished possessions and important family traditions are preserved and passed down to your loved ones.
Legacy planning isn't just about distributing assets, but a proactive and deliberate process of preparing and transferring your wealth, values and life lessons to future generations, providing a financial safety net for your family, ensuring their security and well-being.
Essentially, effective retirement planning directly impacts what you will have available to leave as a legacy, making it less likely that you will deplete your assets during your lifetime, preserving more for your beneficiaries.
'71% of Malaysians with a legacy plan rely on insurance and takaful, highlighting the trust in these solutions to protect their loved ones' future,' said Lew.
A silent crisis
The Insure or Unsure Insurance Literacy Survey, recently conducted by insurance and takaful provider Sun Life Malaysia, found that 65% of Malaysians recognise the importance of legacy planning, but only 15% have a plan in place.
The survey was conducted among 1,040 citizens across different income brackets and geographical locations, to gauge their attitude, behaviour and understanding of insurance and takaful knowledge, as well as legacy planning preparedness.
Among the 65% who recognise the need for legacy planning, 60% are married, 34% are single and 6% are divorced, widowed or separated.
'This second edition of the survey takes a more profound look at how we can empower Malaysians to achieve long-term financial security, extending beyond their retirement years to secure the financial future of their families,' said Sun Life Malaysia president and country head Raymond Lew.
'Retirement planning is not just about securing your own financial future—it's about ensuring the well-being and financial stability of your loved ones for generations to come.
'The statistic that 85% of Malaysians lack a legacy plan isn't just a number; it is a call to action to broaden our understanding of retirement planning to include the profound impact of a well-structured legacy.'
The survey further disclosed that 39% of respondents claim they are unsure how to begin, highlighting a lack of accessible resources and guidance. Meanwhile, 54% of those who initiated legacy planning sought professional advice, showcasing the complexity and importance of this process.
Why is proactive planning important?
Building a secure retirement isn't just about our own well-being; it's also about laying the foundation for our loved ones' financial future.
Sun Life Malaysia's survey revealed that the most common barrier to legacy planning is that immediate needs often overshadow long-term planning, especially among single individuals and childless couples.
Other obstacles included financial constraints (41%), lack of knowledge (39%) and competing financial goals (35%).
Proactive planners choose insurance/takaful as the key legacy planning tool
The survey results also highlighted a clear trend among proactive legacy planners—71% of this group reported utilising insurance or takaful products, followed by trust funds (54%) and wills (44%) to secure their legacy.
This is where Sun Life Malaysia steps in, as the company's value proposition is centred around empowering Malaysians to plan, build and protect their legacy through a wide range of tools, including insurance and takaful plans.
'At Sun Life Malaysia, we are committed to empowering Malaysians to take a more proactive approach to their retirement and legacy planning so that they can protect the financial future of their families,' said Lew.
For example, Sun Life Malaysia offers free digital resources on its website, including legacy and retirement planning tools, empowering Malaysians to make informed decisions.
For those who like a face-to-face chat, Sun Life Malaysia's advisors are available to help you explore legacy planning. These professionals can simplify the process and get the ball rolling for you.
Think of it this way: a solid retirement plan isn't just about your own future—it's the bedrock for building a meaningful family legacy.
By weaving legacy considerations into your retirement planning from the start, you are not only securing your own comfort but also paving the way for your loved ones' financial well-being for years to come.
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