Aging population spurs demand for financial security solutions

As Malaysia’s population ages, with 8.1% of its 35 million citizens already over 60 and projections indicating this figure could rise to 14.5% by 2040, the need for comprehensive planning for aging is more critical than ever.

By 2030, Malaysia is expected to face the full reality of an aging society, underscoring the importance of ensuring that aging individuals are well cared for, especially in the absence of their primary caregivers.

Elder Care Trust: Well-being of aging parents

For those with aging parents, the thought of their well-being in the absence of a caregiver is a significant concern.

This is where the Elder Care Trust, introduced by Rockwills Trustee Berhad, comes into play.

Designed to provide financial security and peace of mind, this trust ensures that elderly beneficiaries are well taken care of if something unforeseen happens to their younger caregivers.

The Elder Care Trust offers a straightforward yet practical solution.

It allows individuals to set aside funds in a trust to cover the living and medical expenses of their elderly loved ones, including costs incurred at nursing or retirement homes.

According to Azhar Iskandar Hew, Group Chief Executor of Rockwills, “The normal practice for many is to entrust someone—a close friend or another relative—to take care of the aged should anything happen.

While this may seem easier, such arrangements carry potential risks, such as the entrusted person passing away or misusing the funds.”

By placing up to three Malaysian accounts and/or life insurance policies into the trust, the Elder Care Trust guarantees that these assets will be managed responsibly by Rockwills Trustee, eliminating the risks of financial exploitation and ensuring the funds are used as intended.

Self-care trust: A solution for independent aging

In addition to the Elder Care Trust, Rockwills Trustee offers the Self-Care Trust, catering to individuals who may not have someone to rely on.

This trust ensures that the assets placed within it are used to cover personal care, medical expenses, and even debts in the event of incapacitation or long-term disability, preventing the individual from managing their financial affairs independently.

Azhar further emphasised the importance of these trusts, stating, “Aging and the challenges associated with it are very real.

It is important for community-focused organisations such as Rockwills to innovate and offer Malaysians services that meet their needs at every stage of their life. It is not just business but also a corporate responsibility.”

As Malaysia approaches the challenges of an aging population, proactive financial planning through trusts like Elder Care and Self-Care can provide peace of mind for both aging individuals and their families.

These trusts offer a reliable way to ensure that the care and well-being of loved ones are safeguarded, even in the face of unforeseen circumstances.

For more information on how to set up an Elder Care Trust or a Self-Care Trust, visit Rockwills’ social media platforms or consult with any of their registered estate planners.