Malaysians prefer savings account to stock investing

Most Malaysia are cautious when it comes to investing their money, opting for safer mediums such as savings account rather than stocks or other investment vehicles, according to the results of Aviva's Consumers Attitudes to Savings 2008.

Of the 1,000 respondents surveyed, 94 percent has a savings account, 35 percent has life insurance with savings element, while the remaining 23 percent has unit trust, the New Straits Times reported.

However, more than half of the respondents indicated that they are ill-prepared to cope with the unexpected, reflecting a worrying trend in Malaysians' financial preparedness.

Some 63 percent of the people polled realized that saving and investing regularly are key to a comfortable retirement, but only a mere 14 percent were confident they will have enough funds to retire.

Despite up to 64 percent expressing concern that they would not have enough money when they retire, the majority saw extending their working life as a better solution to be more financially secure.

To ensure an adequate lifestyle when they really have to retire, 53 percent of them even acknowledged that they might have to work beyond their retirement date.

"The survey clearly reveals the gap between acknowledging the need for saving versus the action of actually saving. Malaysia choose to continue working full time and part time to fund their much-deserved retirement instead of shifting their mindset to investing their income into other mediums that could potentially provide higher returns," said CIMB Aviva Malaysia marketing director Andi McLennan.

Continuous education and awareness about ways to benefit from financial growth, while benefiting from the certainty of capital and life protection, are critical for the Malaysian market, he said.

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