64% Malaysians Working After 60 — Build Dividend Stock Portfolio | Maher Saham

The Retirement Gap: Between Necessity and Desire

The retirement landscape in Malaysia is undergoing a drastic transition. If age 60 was once considered the time to fully rest, the latest findings reveal a very different trend.

According to the 'Retirement Reimagined: Asia''s Retirement Divide' survey by Sun Life Malaysia, the majority of Malaysians now anticipate an active post-retirement life, driven either by financial necessity or personal aspirations.

The survey revealed that 64 per cent of respondents in Malaysia plan to or are already working beyond the official retirement age. This phenomenon divides retirees into two main categories:

Gold Star Planners: A group that is financially prepared and chooses to work to maintain an active lifestyle, mental stimulation (53%), and social connections (52%).
Stalled Starters: A group forced to delay retirement due to financial constraints and the need to save more money for survival.

Why Do Malaysians Continue Working?

Based on the survey data, here are the main factors driving this trend:

Driving Factor	Percentage (%)
Covering cost of living & financial stability	63%
Seeking meaning and life satisfaction	53%
Mental stimulation	53%
Maintaining social connections	52%

The Sandwich Generation Challenge

President and Corporate Country Head of Sun Life Malaysia, Ho Teck Seng, emphasised that the greatest pressure is felt by the sandwich generation. This group is squeezed between the need to support ageing parents while simultaneously providing for growing children.

This dual pressure forces many individuals to:

Downsize their current lifestyle.
Postpone their dreams of early retirement.
Work longer to ensure the family''s financial security remains intact.

The Rise of GenAI in Financial Planning

One interesting trend detected is the increasing use of Generative Artificial Intelligence (GenAI) as a source of financial information.

GenAI usage surged from 10 per cent to 21 per cent within one year.

Although this technology eases access to information, experts warn about the risks of self-directed planning without professional guidance. Reliance on banks and certified financial advisers is seen to be declining, which raises concerns about potential long-term investment strategy errors.

Core Issue: Planning That Falls Short

Although many are aware of the importance of savings, the statistics reveal a concerning level of readiness:

30 per cent of citizens have no early retirement planning at all.
Only 15 per cent are truly confident in their existing retirement plan.

Beyond financial factors, health plays a critical role. Individuals who are physically and mentally healthy tend to be more optimistic about old age, while those with health problems are often forced to retire earlier than planned — further adding to the financial burden.

Retirement as a Personal Choice

Nearly 8 out of 10 Malaysians (79%) now believe that retirement should be a personal choice based on individual readiness, not merely dictated by the official age limit. With Malaysia heading towards becoming an ageing nation, strategic and early financial planning is no longer an option but an urgent necessity.

Financial freedom cannot be left to fate or "coincidence." It requires proactive action today to ensure a meaningful retirement in the future.

Source: NST Online

Building a Retirement "Money Machine" Through Quality Dividend Stocks

To avoid falling into the Stalled Starters category — those who work because they have no choice — one of the most powerful strategies is to build a portfolio of high-quality dividend stocks. This is not just investing; it is creating an automatic "money machine" for your golden years.

Why High-Quality Dividend Stocks?

Not all stocks are created equal. For retirement, the primary focus should be on Shariah-compliant companies that have:

Strong Cash Flow: Companies with market monopoly or competitive advantage (such as banking, utilities, or REITs).
Consistent Payout Track Record: Companies that have never failed to pay dividends even during economic downturns.
Dividend Growth: Companies that raise their dividend rates every year, thereby helping you combat inflation.

By owning such stocks, you do not need to sell your "Mother share" for survival; you simply harvest the "fruits" (dividends) produced every quarter or annually.

The Magic of the Compounding Effect

In the world of finance, compounding is often referred to as the eighth wonder of the world. It is the process where returns from your investment (dividends) are reinvested to purchase more stock units, which will then generate even more dividends in the future.

How does it work for your retirement?

If you start early, this effect works exponentially:

Year 1-10: Growth may appear slow. You reinvest every sen of dividends received.
Year 15-25: This is the inflection point phase. The dividends you receive may already be large enough to purchase hundreds of new stock units without you needing to contribute from your own pocket.
Retirement Time: Your portfolio has grown large enough that annual dividend payments can cover your entire cost of living.

The "Plant Now, Harvest Forever" Strategy

The key principle in this financial education is discipline and time. A dividend portfolio is not a get-rich-quick scheme, but it is a "guaranteed wealth" scheme if given sufficient time. By selecting companies with strong fundamentals, the risk of capital loss can be minimised while passive income potential is maximised.

A peaceful retirement does not depend on how much money you save, but on how many productive assets are working for you while you sleep.

Build Your Own Dividend Stock Portfolio

Want to learn how to analyse, screen, and build a portfolio of high-quality Shariah-compliant dividend stocks on Bursa Malaysia and the US market?

Refer to our article: Beginner-Friendly Dividend Stock Investment Guide: Your Journey to Financial Freedom

Or you can learn systematically through the Gold Mahersaham package.

Build Your Retirement Portfolio

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