As life expectancy rises and family structures evolve, more people are exploring alternative living arrangements for their golden years.
Retirement homes, assisted living, and independent living are becoming popular, but with high costs and limited savings, are these options affordable for most?
Growing need for elderly care in Malaysia
Malaysia is moving towards an ageing population, with 14% of people expected to be over 65 by 2043, reported NST.
The demand for elderly care is rising, and many retirees are looking at private retirement homes, assisted living facilities, or even fancy retirement villages. But these places come with a big price tag.
For basic private retirement homes in Klang Valley, you’re looking at:
- RM2,500 to RM3,000 a month
If you want something more luxurious, with medical care, specialised meals, and fun activities, you’ll need to fork out between:
- RM6,000 to RM10,000 a month
The problem is, many Malaysians, about 1 in 4 (25%) run out of their retirement savings within five years, according to the Employees Provident Fund (EPF). So, for a lot of people, affording these facilities might be tough.
Sharon Ang, the area general manager at The Ascott Limited, which runs Domitys Bangsar Kuala Lumpur, says the costs are expected to rise. At Domitys, the starting monthly rate for seniors is:
- RM6,450 (this includes breakfast and daily activities)
And it’s only going to get pricier over the next 10 years as demand grows.
Independent living is catching on
Places like Green Acres Retirement Village in Ipoh offer a more “independent living” approach. They have one- or two-bedroom villas for seniors who want their own space but still enjoy community life. Residents lease these villas for life, with prices starting around:
- RM347,000 (one-time payment)
James Pany, the general manager of Green Acres, says this is great for older couples who want to downsize and live in a place where all their needs are met. Green Acres is expanding with 28 more villas, and:
- 75% of them are already booked
Assisted living on the rise
While retirement homes aren’t super popular yet, Anna Chew, CEO of ReU Living, says that assisted living is becoming more attractive.
Many seniors need professional care, and it’s hard to find reliable home care help. ReU Living offers 24/7 care for seniors, and it starts at:
- RM10,000 per month (all-inclusive)
Retirement planning in Malaysia
Some Malaysians, like 75-year-old R. Krishnaswamy, are planning ahead. He and his wife sold their home and moved into a smaller apartment to save up for future care, which they expect will cost around:
- RM4,000 to RM6,000 per person, per month
Since they don’t have kids, they’re also considering more affordable retirement homes in India, where their money can go further thanks to the exchange rate.
Affordable options needed
Dr. Shahrul Bahyah Kamaruzzaman, president of the Malaysian Healthy Ageing Society, says we need more affordable retirement home options for the middle and lower-income groups.
She suggests developers look into cheaper alternatives, with help from the government through incentives. Financial planning, savings, and investments are also key for making retirement homes a realistic option.
A global issue
This isn’t just a Malaysian problem—countries around the world are facing rising elderly care costs. In Europe, monthly care home fees in 2019 were:
- UK: 3,020 euros
- Germany: 3,000 euros
- France: 2,450 euros
- Denmark: 1,450 euros
- Sweden: 1,300 euros
According to the World Health Organization (WHO), by 2030, one in six people worldwide will be over 60. And by 2050, almost 80% of elderly people will be living in low or middle-income countries, which will put even more pressure on care systems.
