written by KCLau @ KCLau’s Money Tips
This article summarizes the important facts of the original article “When Retirement Dreams Seem Elusive” by Chong Pooi Koon
Retirement Survey
Tan Kar Hor, the chief executive officer of Prudential Assurance Malaysia Bhd told the result of a survey commissioned by Prudential and conducted in April this year by Synovate Malaysia (a market research firm). The survey finding is based on 1,038 respondents age 28 and above Malaysians with monthly household incomes of RM3,000 and higher.
Worrying facts:
1. Malaysians generally show a lack of interest or concern for their retirement
2. Of the 1,038 respondents, only 34% are saving regularly for retirement
Are the other 64% of Malaysian still dreaming? Regularly save is the most important financial habits a person should learn since birth. Still remember your piggybank?
3. Almost half of the respondents have not thought of how much they need to retire comfortably.
4. Only 42% of retirees are confident they have enough to cover retirement needs
5. Only 35% are confident that EPF and personal savings are sufficient when they retire
You can download the full story report here.
Call for Action
There is more than once the mass media published survey finding and report about the alarming facts of possible retirement crisis. In order to retire comfortably, what you should do now is:
1. Start saving as early as possible. Click here to read the article of how a fresh graduate plan to retire in 8 years time.
2. Learn to get a better return of investment from your savings
3. Discuss with your financial planner to access your retirement goals and needs. Draft a viable plan. Don’t have anyone to consult? Consider me.
4. Never stop learning about personal finance through financial blogs, publication and magazine.
{ 3 comments… read them below or add one }
it is quite worrying.
Most of them have no interest in financial planning and many of them are in heavy debt.
I hope more people will think like “sam” and do proper planning. while taking proper actions
Start early because money takes time to accumulate and let it compound
I plan to save RM200 every month and invest it in mutual fund. With a compounding interest of 10% annually for the next 26 years, using a financial calculator, at the end of the 26 years I will get
RM 356,714.23.
My strategy is that at my retirement age, I will maintain that RM356,714.23 and live on the interest of 10% each year which is the total amount times with 10%. Every month I will have RM2,972 to spent, plus with my EPF money to spent on other things.
Is my strategy ok?