Thinking of Retirement?

For those thinking of retirement, they should read this article "Retirees using up EPF savings within 3 years", which was carried by The Star on 10 May 2005.

Utusan Malaysia and The Star also reported that:

• Over 60% of retirees used up their EPF savings within 3 years of retiring,.
• More than half of the active contributors withdrew 40% of their savings while they were still working.
• The average savings of the contributors was about RM90,000.
• Most of them have only a monthly average of RM370 to spend until the age of 75.

Still think you are ready for retirement? Give some thought to other steady streams of income. REIT shares, rental income if you have a second property to let, interest from fixed deposits (some banks offer monthly payments and higher rates for senior citizens) or even part-time employment can supplement your income. Have you provided for medical emergency needs? Possible recessions that may affect your income?

It's good to think about these questions even as early as when you start working. It's easier to save and plan when you start early.