Early retirement a dream, later retirement the reality, says economist

Rising prices and a lack of savings will place phased retirement out of reach for many Malaysians, who can expect to remain working for longer than planned, says an economist.

Juita Mohamad, who is with the UN trade agency, said one in four EPF members are projected to exhaust their savings within five years of retiring at age 60.

“An early retirement is a dream for many of us, but looking at the gaps in savings, inflationary pressures and price hikes in the future, more and more people would need to retire later in life,” she told FMT.

Malaysia’s inflation rate was 1.8% in 2024 but is projected to increase to between 2% and 2.5%, driven by subsidy rationalisation, expansion of sales and services tax scope and other factors.