Future Finances

Choosing a Retirement Plan in Malaysia

For some of us, retirement may be decades away. Sustaining a retirement life with an income source, it paves the way for achieving life goals, managing financial emergencies, and leaving a lasting legacy for your loved ones.

Posted: 23-09-2022

What are your plans in life? Do you plan to retire when you get older? All these questions constantly pop up in our minds, which then create a sense of urgency to plan for your retirement. In addition to sustaining a retirement life with an income source, it paves the way for achieving life goals, managing financial emergencies, and leaving a lasting legacy for your loved ones.

When to Start Planning For Retirement?

Most Malaysians intend to retire at age 60, i.e. the official retirement age. When you invest and make a steady profit early on, you can reinvest to grow your retirement income for years. However, retirement does not come easy, therefore it is best to start saving and planning as early as you start earning.

Before thinking about retirement altogether, you need to plan out how much you need to save. Bank Negara Malaysia graciously estimates your monthly retirement expenses for you:

- Single adult: RM2,700
- Couple without children: RM4,500
- Couple with two children: RM6,500

Importance of Retirement Plan   
Let’s dive into some importance of retirement plans.

1.Generate savings to cushion your post-retirement finances.

One crucial element of a retirement plan is generating savings to cushion your post-retirement finances. Finance is tricky to grasp, but once you get it the hang of it, you should be on the right track. By considering to invest in a retirement insurance scheme, it will help you achieve some of your financial goals. 

2. Coverage for Death, Total & Permanent Disability (TPD) and Medical plan

Investing in a retirement plan gives you basic coverage for death and total & permanent disability (TPD). Life is unpredictable; it is best to be safe than sorry. To elaborate further, you can negotiate all other things in the world but not for medical emergencies when it comes like a wind. You don’t want to panic when you lose everything you have without any savings or retirement plans.

3. Taking care of additional expenses/ambitious goals

There are so many things we would love to achieve as an adult or at a certain age. It could be flying to Europe for a travel experience. By that, taking care of expenses will become a concern, especially if you don’t have enough savings or finance. By setting aside some income with retirement plans, it helps you take care of additional expenses. Furthermore, leaving a legacy for your loved ones could be another thought in mind. With AmMetLife WealthEnrich insurance plan, you are covered to plan and leave a legacy for your loved ones.

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Assurance of Today, Legacy for Tomorrow

WealthEnrich is a Limited Premium Investment-Linked Insurance Plan (ILP) offering insurance protection and investment. This plan provides coverage for both death and Total & Permanent Disability (TPD), subject to its terms and conditions.

For many Malaysians, we spend our youth channeling all our energy toward building a successful career to raising our families with ample love and care. But what comes after that? There will come a time when we realise that life is more than just enjoying ourselves, but also how we can improve the lives of our loved ones. This is what WealthEnrich insurance plan aims to achieve.

Benefits at a Glance

1. Additional Coverage for Accidental Death

An additional coverage of 100% of Basic Sum Assured will be provided on top of the Death Benefit if there is an unfortunate accidental death. Any outstanding debt on the policy at the time of settlement shall be deducted from the proceeds payable under the policy.

2. 100% Premium Allocation

100% of your premium will be utilised to purchase units from the selected investment-linked funds for the first three (3) policy years.

3. Wide Range of Investment-Linked Funds

This plan has a variety of investment-linked funds for you to choose from, depending on your risk appetite and financial goals.

4. Free Switching for Investment-Linked Fund(s)

This plan allows unlimited switches without any fees. You have the flexibility to switch between the funds you have selected.

5. 3 Years No Lapse Guarantee

The policy will not lapse within the first three (3) policy years from the effective date if the Account Value is less than or equal to zero (0) on the due date of the monthly administration charge and insurance charge provided all premiums due are paid on the premium due date or within the grace period.

6. High Non-Medical Limit

High non-medical limit of up to RM 1,500,000. It depends on the entry age of the Life Assured, subject to terms and conditions.

7. Enjoy Loyalty Bonus

Starting from the end of the fifth (5th) Policy Year and the end of every 5 years thereafter, upon the survival of the Life Assured, a Loyalty Bonus of 0.5% of Account Value will be declared and credited to the Account Value until the termination of the policy or maturity/expiry date of the policy, whichever is earlier, provided all premium due are paid, and there is no outstanding premium in the policy.  

The above benefits are subject to terms and conditions.

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More about WealthEnrich

WealthEnrich is available to individuals aged from 30 days up to 70 years (next birthday). The minimum annual premium is RM 50,000 with a short payment term of 3 years. A partial withdrawal of your plan is only allowed from Policy Year 4 onwards, provided all premium due are paid, and there is no outstanding premium in the policy. The benefits payable under the policy may be reduced after the withdrawal.

WealthEnrich also has a Maturity Benefit, where the Account Value (if any) will be payable at maturity/expiry date when the policy matures and has not been earlier terminated in accordance with the terms and conditions stated in policy contract.

For some of us, retirement may be decades away. But starting now will make it far simpler for you to accomplish your retirement goals than waiting until later. Look no further than AmMetLife WealthEnrich insurance plan.

All or any of the benefits stated above are subject to terms and conditions. The above articles are intended for reference and informational purposes only. AmMetLife does not accept any responsibility for loss which may arise from reliance on information contained in the article.

References:

1. https://www.freemalaysiatoday.com/category/leisure/money/2022/05/01/how-much-do-you-actually-need-to-retire-in-malaysia
2. https://www.arrowrootfamilyoffice.com/retirement-planning
3. https://www.principal.com.my/en/when-can-i-retire-0