Financial Retirement Plan
The measure of financial success is – we can retire when we want, whilst still in good health, able to pursue life dreams and achieve happiness. To most Malaysians, one of the important life goals is to have a comfortable retirement and we know for a fact a comfortable retirement is more possible once we achieve financial freedom or at least a strong financial standing.
Many of us have started to plan for their retirement via EPF, personal savings and investments. For some lucky ones, they may inherit wealth or win big money. We are aware that 70% of retirees use up all their EPF money within 3 years after retirement. And the very same EPF money is also allowed for withdrawals for education, medical and withdrawal at age 50. With many ways to deplete our retirement savings, the rising cost of living, medical expenses and lifestyle demands will prove challenging to achieve peace of mind in retirement years. Not forgetting the change from Generation X, Y to Z, where there is less and less obligation to care for their parents. Also the trend in delayed retirement and less dependent on the government’s pensions schemes. So, who are we to turn to for our retirement needs?
Sadly, despite realizing all these, many Malaysians delay their planning. And some remain in denial of the challenges approaching them upon retirement.
We must be responsible for our own needs. A simple retirement plan should kick in at least 20 years before retirement age of 60, to sustain a retiree another 15 to 20 years until age 75 to 80. As mortality rate increase from 75 to 80, retiring at age 60, will require us to plan latest by age 40.
Start as early as possible, and combine your financial retirement plan with EPF, savings and investments, Takaful and Insurance plans and more. Do remember Takaful and Insurance companies are not as generous with their coverage once a person is less healthy, older and has unhealthy habits.
A simple RM100 monthly over a period of 35 years (age 25 to 60), growing at 12% per year (profits re-invested) with generate almost RM650,000. Think what RM1,000 per month can do for you !
And given a choice, wouldn’t we want to invest in Syariah-compliant instruments as part of planning for the hereafter?
[For ease of calculation, inflation rate is ignored]
For a customized Financial Retirement Plan, please contact us.