KUALA LUMPUR: Malaysians are uncertain about reaching their long-term savings goals due to increasing healthcare costs and the difficulty of bridging the gap between their financial aspirations and actual savings, according to a Manulife survey.

The Manulife Asia Care Survey 2024 revealed that high expectations in the region, along with ongoing inflation and rising healthcare expenses, significantly affect their financial outlook and capacity to handle healthcare emergencies.

"When asked to look ahead to the next 10 years, survey respondents said that physical well-being is the most important factor to overall well-being (36 per cent) and a key determinant of financial (34 per cent) and mental (30 per cent) well-being," it said.

The survey introduced the MyFuture Readiness Index this year, and Malaysia scored 87 out of 100 on this measure, which assesses consumers' perceptions of their current and future physical, mental and financial well-being.

Respondents identified the top three challenges to achieving their financial goals as the rising cost of living (83 per cent), economic slowdown (83 per cent), and increasing healthcare costs (82 per cent).  

"These financial challenges are compounded by healthcare worries, particularly heart disease (55 per cent), diabetes (48 per cent), cancer (45 per cent) and stroke (41 per cent), the highest in the region."

For comparison, the corresponding figures for Singapore are 38 per cent, 32 per cent, 43 per cent and 34 per cent respectively, Manulife said.

To help prepare for greater longevity, retirement and unexpected medical needs, the respondents said their main long-term financial goals are to be completely debt free (39 per cent), have savings for a rainy day (38 per cent), financial freedom (34 per cent) and a passive income in retirement (32 per cent), along with enough savings for healthcare needs (28 per cent).

Manulife said based on the MyFuture Readiness Index's 1-to-100 scale, Malaysia scored 63 per cent for current financial well-being.

This is one of the lowest scores in the region, lagging behind neighbouring Singapore at 65 per cent and Hong Kong at 69 per cent.

"In Malaysia, people who are single tend to have fewer savings products, less insurance coverage and fewer investment products as those who are married.

"They also have greater concerns about their financial well-being. For most of the single respondents, though, marriage beckons."

This may lead to improved financial well-being for them down the line, it added.  

Manulife Malaysia chief executive officer Vibha Coburn said healthcare inflation is both a perceived and real concern for Malaysians, adding to their uncertainty about being financially prepared for the future.

"That is why Manulife remains committed to ensuring accessibility and affordability for our customers.

"We proactively engage healthcare providers to find ways to address the rise in costs, and we use data analytics to find the best solution for customers."

Vibha added that the survey results provide a better understanding of the needs and concerns of Malaysians and customers. 

"We use the results to develop products tailored to meet their concerns and needs.  

"An example is our Manulife Health Saver Benefit plan is a testament to that. It offers the health protection needed, while incentivising further savings with its no claims discount of up to 40 per cent.

"We encourage consumers to discuss their specific needs with their financial advisors so that they can find solutions that are tailored to them," she said.

https://www.nst.com.my/business/economy/2024/08/1088167/malaysians-not-sure-about-attaining-long-term-savings-goals