7 Best Investments for Retirement

7 Best Investments for Retirement

Choosing a profitable investment is very important to save for retirement in Malaysia. The economic downturn caused by Covid-19 suggests that any seemingly stable economy can quickly change. If you are not financially ready, then your future is threatened.

Therefore, it is important to start thinking about your retirement fund for future convenience. Investing early allows you to have the opportunity to get higher returns. Here are some investment options that you can take into consideration.

Employees Provident Fund (EPF) 

EPF, EPF online, EPF i-Akaun – if you have not heard of these terms before, then you need to have a chat with your payroll manager. The Employees Provident Fund or EPF is a federal statutory body existing under the purview of our Ministry of Finance. It manages compulsory savings and retirement plans for individuals in Malaysia who are employed or working in any capacity. If you are employed, then it is likely that you and your employer are contributing to your personal EPF, so check your payslips for the respective breakdown on EPF. For public employees, there is the Kumpulan Wang Persaraan (Diperbadankan) or KWAP Malaysia, which focuses on managing retirement and pension funds for civil servants.

In Malaysia, EPF interest rates operate on the high side with the 2021 rate for the financial year being 8.5%. So if all other investments fail, you still have this fund to fall back on. The upside of EPF is its relative flexibility. While you cannot draw on the fund as and when you please, you can contribute to it. So for liquid income that you are afraid to invest on other platforms, you can park in your EPF to earn great returns for later on in life. 

Fixed Deposits

Another safe investment option for the disciplined individual is fixed deposits. It is readily available at your bank and easily accessible. This profitable investment is a deposit that is locked in for a certain period of time depending on the plan offered. The amount of money is fixed and before maturity, deposits cannot be withdrawn.

The advantage of this kind of investment is that they require minimal effort. Interest rates for fixed deposits are higher than your regular savings accounts and sometimes there are promotional interest rates that you can engage in to earn higher returns. With lower deposit amounts and lock-in periods, this investment portfolio is a great way to discipline yourself with saving money while making money. It will definitely help cushion your retirement savings


Property is one of the most expensive, but consistently profitable forms of long term investment. Property prices are always appreciate and when you have a good system with stable tenancies (if you plan to rent it out) the property can pay for itself. Investing in Malaysian property both increases your wealth in the long term and if you are in a pinch, selling an apartment or 2 will be more than enough of a cover. 

Compared to other types of profitable investments, property may require more capital because its prices tend to be high. However, the advantages offered are not small. It is even suitable for beginners, considering that this kind of retirement plan has minimal risk due to the stability of people’s needs for housing.

Private Retirement Scheme 

Private Retirement Schemes (PRS) is a voluntary long-term savings scheme designed to help you save money for your retirement. PRS options vary from bank to bank, but ultimately they offer a choice of retirement funds from which you can choose to invest based on your own goals and risk tolerance.

PRS fund frameworks are regulated by the Securities Commission Malaysia and the scheme is safeguarded by the Scheme Trustees board. It’s a low barrier entry so you can contribute as low as 10% of your salary. Plus there is a tax incentive for PRS contributors, where you could potentially enjoy a personal tax relief of up to RM3,000 per year of assessment.

Bonds, Profitable Investments!

Also known as a statement of debt, bonds are a type of profitable investment. Investments listed on the Stock Exchange (stocks, real estate investments, asset-backed securities, etc.) are included in the category of medium-long term debt securities.

Advantages of investing in bonds include earning decent yields with a lower level of volatility than equities. They can also generate more income than money market funds or bank instruments. This all means that bonds are a good option for those who need to live off of their investment income.

Digital Financing Platform for SMEs and MSMEs

A platform that connects lenders and borrowers, digital financing platforms for SMEs and MSMEs can be a profitable investment option. This type of investment is suitable for those of you who want to do more than just invest because funding platforms generally provide financing to small businesses.

While borrowers benefit from relatively lower interest rates than financial institutions, peer-to-peer lending is also beneficial for investors. The return on this investment tends to be greater than traditional instruments such as deposits, which can be up to 18% per year.

If you are interested in trying, start with Funding Societies. Our digital financing platform is aimed at financing underserved Malaysian SMEs, so in a way, it’s a win-win situation for both the investors and the SMEs. This investment alternative offers many advantages, ranging from attractive interest rates, controlled risk, easy online processes, and an affordable deposit amount starting from as low as RM100. 

In conclusion, there are several notable options available to you when it comes to planning for your retirement. All you need to do is calculate your expenditure and decide which one you want to try out or commit yourself to. 


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Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation.  In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorized third party.