Malaysia’s ageing population is prompting calls for greater consideration of long-term care costs in retirement planning, experts say, amid shifting demographic trends that may strain traditional family support systems.
Preliminary data from the Department of Statistics Malaysia (DOSM) show the number of Malaysians aged 60 and above increased from 3.9 million in 2024 to 4.1 million in 2025, boosting this group’s share of the overall population from 11.6% to 12.0%. This means nearly one in eight Malaysians was a senior citizen last year. Projections from DOSM suggest Malaysia is on track to become an ageing nation by 2036, with those aged 60 and older expected to represent more than 15% of the population.
Contributing to this demographic shift is the country's declining fertility rate, which dropped from 2.0 children per woman in 2013 to 1.6 in 2024—below the replacement-level rate of 2.1. This trend implies fewer children to support ageing parents, increasing the potential caregiving burden on smaller family units. For individuals without children, the question of who will provide care becomes even more pressing.
In light of these developments, specialists emphasize the importance of integrating long-term care expenses into retirement budgeting. This includes evaluating how pensions, savings, and investments can sustain future care needs, which may span several years and involve escalating costs. For instance, even a basic nursing home fee of approximately RM2,000 per month would total RM240,000 over a decade, excluding additional expenses such as medical supplies, medications, or enhanced nursing services.
Care facilities vary widely in the support they provide, ranging from retirement centers that offer accommodation and social interaction, to nursing homes delivering more intensive personal care for those with mobility or health challenges. Families are advised to carefully assess what services and charges are included, understand fee adjustments related to changing care needs, and clarify policies if the facility cannot meet evolving requirements.
Experts caution against assuming that children’s financial contributions will be reliable and stress the importance of transparent discussions about what each family member can realistically provide. Retirees are encouraged to maintain accessible savings for unforeseen expenses and review whether their insurance policies cover residential care costs.
Acknowledging the complexities involved, a senior lecturer from Universiti Utara Malaysia’s College of Business urges early conversations about care preferences and financing options before health crises arise, which often force costly, pressured decisions. Advocates also call for improved transparency from care providers and the development of long-term care insurance products to support families navigating Malaysia’s ageing landscape.
As the country’s demographic profile evolves, policymakers, insurers, and care providers are being urged to collaborate on solutions that enable Malaysians to plan for not just retirement, but the quality of life and care they will require in their later years.