Malaysia Is a Hidden Gem for Retirees Looking for Affordability

According to Northwestern Mutual’s 2024 Planning & Progress Study, Americans say they need close to $1.5 million in the bank to retire. This marks a 15 percent year-over-year increase from 2023. So yes, retiring in the U.S. is getting more expensive. But there is another way: retire abroad. Specifically, retire to Malaysia, a country with more than 800 islands and one that was recently named the safest place in Asia.

In late 2024, We Buy Any Home released a study on the top places to retire around the world, putting Malaysia in second place overall thanks to its affordable cost of living (only being beaten out by Finland) and No. 1 in Asia. As the findings noted, the nation scored an impressive 96.1 out of 100 in its rankings due to the price of an apartment, which expats can buy for about $997 per square meter. 

SmartAsset further explained that the overall cost of living in Malaysia is close to 54 percent lower than in the U.S., making it a place where your dollar can stretch a whole lot further, with rental homes going for 79.8 percent less than in the U.S. as well. And that includes its major cities. 

“For instance, in Kuala Lumpur, a one-bedroom apartment in the city center averages around $373 per month, while the same outside the city center costs about $261,” SmartAsset noted. 

And in Ipoh, a smaller city in Malaysia, “a one-bedroom apartment in the city center averages approximately $364 per month and about $206 outside the city center.” 

However, according to SmartAsset, many American retirees choose to move to Penang Island — and why not? It offers the perfect mix of city life, culture, and gorgeous beaches lapped by azure waters. It noted that retirees can live comfortably on $2,500 per month, including renting a three-bedroom condo with an ocean view.  

As for how you can get a visa to live here as a retiree, the website noted that when you enter Malaysia you’re provided a tourist visa that allows you to stay for up to three months. But if you want to stay longer, you must apply for a long-term visa through the Department of Immigration and then through the Malaysian Representative Office. 

“Once you receive approval, you’ll be required to submit your passport, two photocopies of the ID page, two copies of the visa application form, two passport-sized photos, and the visa fee,” it added. “Additional documents such as a recent bank statement, an invitation letter, and two copies of your flight tickets may also be requested. The Malaysian Representative Office will then review your application and make a decision to approve or deny your visa.” 

Visa Guide also explained that to get a retirement visa in Malaysia, you must be at least 35 years old, and if you’re under the age of 50, show proof of liquid assets of at least $118,500 or income of at least $2,370 per month. If you’re over 50, you must show proof of liquid assets of $83,000 or $2,370 per month.

It also doesn’t hurt that the average temperature across Malaysia is 77.7 degrees all year long, and it receives 2,222 hours of sun a year, making for a pretty spectacular place to live out your golden years.