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Having Enough for Retirement

a woman putting paper money inside a blue piggy bank for retirement.

In Oct 2015, I was reading the article Having enough for retirement on The Star Online. It is worrying that most EPF contributors on the verge of retirement do not have enough savings for their golden years.

This is also a sad situation that 68% of this group has less than RM50,000 EPF savings. With some simple calculations: RM1,000 for every month, RM50,000 can only last for 50 months. That is slightly more than 4 years!

How about the life of these retirees after 4 years?

Why do many Malaysians do not have enough for retirement?

One of the many reasons for this insufficient retirement fund is limited financial literacy among the contributors. Most contributors were not aware of the impact of a limited fund in their golden years.

Besides, they are also not aware of the importance of retirement planning.

With proper financial literacy, contributors should be able to plan ahead for their golden year at a younger age.

The other reason will be the low salary package of the wage earners. With about 23% deduction from monthly salary, with an estimation of 30 years of working years, the total savings should be quite a huge amount and should be enough to cover the next 20 years without income.

But, with a low salary package, this 23% savings is not going to produce a good amount for a financially worry-free retirement.

Final thoughts

So, are you having enough for your golden years? Let us take some time from our busy schedule and evaluate our retirement planning.

Perhaps take a look at my sharing on Secure Bigger EPF Savings With 6 Simple but Effective Ways.

photo credit: wuestenigel Woman hand putting money bank note into piggy for saving money via photopin (license)

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