Ready to Retire?
1:56 AM
Raising the age for
full withdrawal of EPF (Employers Provident Fund) savings from 55 to 60 years old.
What do you think? Most
EPF contributors are against this idea. It is understandable as it is THEIR
money. But consider the following:
1. 70% of EPF
contributors had less than RM 50,000 in their accounts upon their retirement.
2. The average life
span of Malaysians has increased from 68 years old in 1980 to 74 years old in 2012.
3. Even with at least
RM 196,800 in savings upon retirement, EPF worked out that an individual will
have to live by RM 820 per month for 20 years.
Is RM 820 per month
enough? It does not factor in the (roughly) 6% inflation rate (do you actually believe the 3 - 4% official estimate?). Just look at how
much a plate of Nasi Lemak cost 20 years ago. How much can a person buy with RM
820 in 20 years?
Furthermore, once
retirement sets in, everyday is a weekend. On which days do people spend the
most money on? Weekend or weekdays?
I agree in principle
what EPF intend to do. It's intention is good. But in practical sense, it may
not be a good idea. Yes, there are retirees who blow all their savings within
a few years such as renovating their house, buying a new car and get caught in
get rich schemes. However there are
genuine retirees who need the money for health treatments and their children's
education.
A better approach
would be to let EPF contributors decide for themselves. Give them the option.
At the same time conduct education programs for future retirees on money
management.
For those who just
started working, this should be a wake up call to plan ahead for retirement. It
is NEVER too early to plan. However, my idea of retirement is not to NEVER WORK
AT ALL but
Get paid doing
whatever I love to do
My aim is to be able
to have MULTIPLE STREAMS OF INCOME. I can sleep, play with my kids, read a book
and still make money and give some back to the society. But this is a work in
progress. I have not reached a point where I can do all that yet.
Money management is
important. Unfortunately, it is not taught in school or university. I am in the
process of fine tuning my money management myself as the first few years of my
working life was riddled by financial mistakes.
People still asks me these questions (assuming that doctors are paid handsomely)
"Buy la that
corner lot house doctor, you can afford what"
"Change la this
car. Get the new CRV. Only RM 120,000. You can afford"
"Boss, tukar la
to iPhone Plus. Best woh"
At this point in
time, NO, I can't afford all that. I am still (relatively) young and I need to
build my asset column first. And YOU, my fellow readers, should build yours
too.
2 comments
On a practical sense, we need to lock the EPF at a higher age...
ReplyDelete"Bekerja seperti hidup seribu tahun lagi" aka you might live longer than you think... Poor.
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