Life-Centered Financial Planning helps you live well at every stage of retirement. In the early years, this may mean travelling, pursuing your favourite hobbies, and making memories with your loved ones.
As you move into your later years, more of your resources may be needed to ensure you receive the comfort and care you deserve. An unexpected illness or fall could increase your healthcare expenses — often beyond what public healthcare services or private insurance cover.
This overview of long-term care in Malaysia will help you understand how to prepare your financial plan for when you may need it most.
1. Defining Long-Term Care
In Malaysia, long-term care refers to a variety of services that support individuals who can no longer perform daily activities independently due to aging, illness, or disability.
These services may include:
- In-home care: This ranges from part-time domestic help to full-time care by certified nurses or caregivers for bathing, dressing, medication, and mobility assistance.
- Day care centres for the elderly: Community centres or facilities where seniors receive care and supervision during the day while family members are at work.
- Assisted living facilities: Private or semi-private centres that offer accommodation, meals, and assistance with daily living while maintaining a degree of independence.
- Nursing homes (Pusat Jagaan Warga Emas): These cater to seniors with chronic health issues and who require 24/7 professional medical and personal care.
While public hospitals and NGOs offer some support, much of Malaysia’s long-term care is delivered by private providers — often with high associated costs.
2. The Costs of Long-Term Care
As Malaysia transitions into an ageing society, the need for long-term care is growing rapidly. A person aged 60 today has a strong chance of requiring some form of elder care in their lifetime — women, on average, longer than men.
Unfortunately, public healthcare (such as services at government hospitals) generally covers only acute and rehabilitative care — not custodial or long-term support services. Most long-term care costs must be paid out-of-pocket.
According to a 2024 study by the Malaysian Research Institute on Ageing, average annual long-term care costs are:
- Private nursing homes: Over RM120,000 for a single room with full-time care
- Assisted living or semi-independent facilities: Around RM70,000 per year
- In-home care with a trained caregiver or nurse: Approximately RM80,000 annually
These costs vary by location — with Klang Valley and urban centres being more expensive than rural areas.
3. Paying for Long-Term Care
If you have a family history of chronic illness or want to ensure independence in your later years, it’s wise to consider your financing options:
- Private Medical Insurance (with long-term care riders): Some insurers in Malaysia offer limited coverage for long-term care costs or critical illnesses. Make sure your policy includes long-term disability or elder care benefits.
- EPF (Employees Provident Fund) & PRS (Private Retirement Scheme): While EPF funds are mainly for retirement, withdrawals may be used for medical purposes, especially under EPF’s Health Withdrawal facility. PRS can supplement your savings with tax benefits.
- Personal Savings & Emergency Funds: Creating a specific long-term care fund within your savings portfolio allows for flexibility and peace of mind.
- Takaful & Critical Illness Plans: Islamic-compliant protection options may provide lump sum payouts in the event of certain medical conditions — which can be redirected toward long-term care.
4. Long-Term Independence
For many healthy Malaysian seniors, long-term care doesn’t mean dependence — it means planning to live independently for as long as possible.
Options include:
- Aging in place: Staying in your own home, possibly with renovations like ramps, safety rails, or a downstairs bedroom to improve mobility and comfort.
- Relocating: Moving closer to family or to areas with better access to healthcare and community support.
- Retirement villages or active senior communities: While still rare in Malaysia, these are emerging as an option in urban areas.
Regardless of the route, housing and healthcare will be major expenses in any retirement plan.
