Common Challenges And Solutions In Preparing For Your Retirement
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Building a retirement nest egg is important without which could lead us to not being able to enjoy our golden years or worse, be in an unfavourable financial situation. However, due to certain circumstances like high cost of living, inflation, and lifestyle changes, many Malaysians are finding it difficult to save sufficiently for their retirement. 

With these challenges in mind, Maybank Flexible Retirement Solution offers a new way to supplement your savings at a pace you’re comfortable with. It features two Shariah-compliant funds – Maybank Global Wealth Moderate-I Fund and Maybank Global Wealth Growth-I Fund – that work together to reach your retirement goals. As you go through each life stage, you can adjust your plans and optimise the potential of your investments to better suit your needs. 

Find out how you can navigate and prepare for your retirement with this solution.       

  1. Inflationary pressure 

Many Malaysians have been feeling the pinch of recent price increases for several foods such as rice, flour, and even our favourite Malaysian breakfast dish combo, roti canai with teh tarik. As our living cost increases, our savings need to keep up as well, otherwise they would lose their value. 

For example, you have deposited RM100 into your bank account with 1% interest. This means, after a year, you would have RM101. But, what if inflation has crept up to 2%? Now, prices of items have increased by 2% and the growth rate of your savings of 1% would not be able to cover the rising inflation – cutting into your buying power.

Hence, it’s important to hedge against inflation and grow your savings at a rate that is higher than inflation. Maybank’s retirement solution has projected target returns of 6% to 8% per annum with the two complementary global Shariah-compliant mixed asset funds –  Maybank Global Wealth Moderate-I Fund and Maybank Global Wealth Growth-I Fund. The target returns are above the average inflation rate projected by Bank Negara Malaysia of between 2.2% and 3.2%.

  1. Prepare for the unexpected

Many people spend their whole working life, which could span from 30 to 40 years, to build a sufficient retirement fund. It’s important to consider possible incidents that could impact your income such as health issues or loss of employment and build a financial safety net for when such unexpected situations occur. 

One way to minimise the impact of the unexpected is by preparing an emergency fund for rainy days, which you can put in a low-risk fund. A highlight feature of the Maybank Flexible Retirement Solution is that you have the freedom to choose and switch between the Moderate or Growth portfolio and share classes. 

According to Maybank’s website, the Moderate portfolio can potentially give you returns that outpace inflation at moderate risk. 

It is noted that, based on the 2022 Global Medical Trend Rates Report by Aon, the medical inflation rate in Malaysia is six times (6x) greater than the general inflation rate, so it may be worthwhile to consider purchasing a comprehensive medical insurance. This gives you more options for treatments and services at private hospitals.   

  1. Priority changes and how you can invest and earn

At every life stage, we have different needs and priorities. When you’re in your 20s and early 30s, you have a longer investment horizon and a higher tolerance for market volatility. The Growth portfolio can help to provide potentially higher capital appreciation with a more aggressive investment strategy.  

As you proceed through life stages, you may want to maintain potentially good returns but not at high levels of risk. The Moderate portfolio helps you attain this. Aside from the flexibility of switching between these two funds, you can also combine them at any time you wish.

Additionally, you can choose and switch between the Accumulation class and Distribution class, which is basically how you want your earned income to be treated. 

For example, in your 30s, you’ve just bought your dream home. You could opt for the Distribution class and receive cash payouts to make repayments for your home. As you become a parent, you think of your children’s education fund. You can then choose Accumulation class to compound long-term growth of savings.  


Many people understand the importance of preparing for their retirement but they also want to have control over their money. Maybank Flexible Retirement Solution lets you build your retirement fund at your own pace. 

Designed to help Malaysians plan for their golden years, Maybank’s retirement solution not only lets you supplement your savings, but also flexibly choose and switch between Moderate and Growth Portfolio as well as share classes according to your needs and risk affordability, to enjoy target returns of 6% to 8% per annum.

Find out more here.

The contents of this article do not constitute financial advice by RinggitPlus and Maybank. Readers should conduct their own research before making a financial decision.

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