HSBC Malaysia's Yip said HSBC’s Quality of Life study found that affluent Malaysians are diversifying their wealth to preserve their lifestyle and plan for future generations.
KUALA LUMPUR: Nearly half of affluent Malaysians are planning “mini retirements” – intentional career breaks lasting one to two years – with many even hoping to take several across their lifetimes, according to a survey.
HSBC’s “Quality of Life: Affluent Investor Snapshot” revealed that 50% of Malaysians with investable assets of US$100,000 (RM420,800) to US$2mil (RM8.42mil) intended to take a mini retirement, with 53% of them eyeing two to three such breaks, ideally starting at age 46 and repeating once every seven years.
For 77% of respondents, mini retirements are seen as a way to enhance quality of life, with the top motivations being spending time with family (40%), improving well-being (36%) and travelling freely (29%).
On average, affluent Malaysians plan to spend US$309,000 (RM1.3mil) per mini retirement – higher than in markets such as Australia and Taiwan, although still below the global average.
Funding largely comes from personal savings (55%), investment income (52%) and rental properties (36%).
Despite financial security (42%), family responsibilities (33%) and career risks (31%) being key concerns, 71% remain confident in their financial planning.
Interestingly, Malaysians allocate just 31% of their total retirement savings for mini retirements – a much lower proportion compared to India (93%) and Indonesia (52%). While most plan to take breaks within Malaysia (61%), the top overseas picks are Singapore, Japan and Australia.
HSBC Malaysia’s Linda Yip noted that the trend reflected a shift in how success is defined – from wealth accumulation to having the freedom and means to “live their wealth” through experiences.
“Mini retirements may be a relatively new concept in Malaysia, but they are becoming more prevalent as the perception of wealth is changing.
“Affluent individuals no longer define success by how much of wealth they have accumulated but by having the time and ability to live the life they truly want, and to live their wealth,” she said.
