Checkboxes Before Retirement

According to a report Malaysians are aging fast. By 2035, 15% of our population would be 65 years old and above. Life expectancy is rising due to better living standards and healthcare. A male life expectancy is estimated at 72.5 years and 77.4 for females.

Aging is a process none of us can escape. The million-dollar question is are we prepared financially to live longer? According to EPF, 68% (2/3) of EPF members have less than RM50,000 in their account! That would mean a monthly budget of RM320.5 per month to spend if you retire at 60 and live to 73 (RM50,000/13years/12months)!

Retirement is serious business. Not just fun, sun and vacation, unless you’re financially prepared. If you are in your 40s or even 50, approaching retirement, perhaps you should start checking out these items.

  • Define what retirement means to you. Does it mean working less, working part time or just not working at all? Whichever definition is your retirement, have you done enough savings or investments to live it out?
  • What would be my monthly expenses during retirement? Do I have enough fund? Do I need to do more savings now? Do I need to do more investments to grow my retirement nest eggs?
  • Where or What would be the source of my income during retirement? EPF? Investments, e.g. unit trusts/mutual fund, stocks etc? Passive income, e.g. rental from properties or businesses?
  • Do you need to relook or review your savings and investments strategy? How to grow your nest eggs? Have you explored avenues such as Private Retirement Scheme (PRS), EPF-Member Investment Scheme (MIS), Unit Trust or Mutual Fund, Insurance etc.
  • Get professional help. Professionals are trained people who would assist in monitoring our investments. They take away the ‘emotions’ element in our investment decisions, which is always the biggest killer in our financial planning.

In conclusion, retirement planning is an extremely serious matter. Don’t leave it to chance or emotions. Most importantly, do not procrastinate.

Contact or Call +60123898648 for more professional advice now.

*Information sourced and summarized from Investopedia.com and thestar.com.my