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You will retired poor if depends on EPF only!!!

Updated: Nov 30, 2021

According to EPF, 70% of Malaysians who withdrew their retirement savings at 55 years old had finished it in less than 10 years. Walao… GG.COM weh!

Will you retire poor if you depend on EPF?? How much we need to prepare for our retirement life?? What is your plan?

I believe everyone has a dream about retiring comfortably and maybeee EVEN rich. No one wants to retire POOR. Correct or not?!!? So, how much is enough?? Well, EPF recommended at least a minimum of RM230K in EPF account and you withdraw RM950 every month to spend then your savings will last for 20 years. What??? RM950 a month?? Really enough ah? If you say it is enough, did you put the inflation rate into the calculation?

Ok. Let’s say the inflation rate at 3%. Hmmm…. You do the calculation. If you at age 30 now, with the inflation at 3% roughly you need about RM740k in the account if you planned to retire at age 60 instead of 55 years old. So?? You need a second account to maintain your standard of living.

Ok!! How to plan for it? Most of the time, we may have set aside a good portion of our money for retirement. But do you know it may not be enough if you have not factored the changes such as cost of living AND inflation as I mentioned before.

We always picture our retirement as a stress-free holiday, every day and wanted to complete our bucket list, traveling and live a carefree life. This requires money, and throughout the time, the cost in fulfilling all this will rise in the future. And to be honest, only 40% of the people are financially ready for retirement and living the life they dream about.

You may say, “ok la… I will downsize my lifestyle in my retirement” which you may say zero financial commitment and much lower expenses. But the rising cost of living is going to consume your retirement fund even faster.

So, do you still think your EPF fund is enough?? If no, act NOW!! How to do it??

No. 1, Insurance. Many think that life and health insurance products are the only products we provide. WRONG! We also have products that focus on Investment and Retirement. There is a certain insurance product that can provide coverage on critical illness, life and permanent disability AND savings up for your retirement fund at the same time? Yes, there are such products. And you may also choose your investment funds at a higher risk category for more investment return or a much more secure and lower risk fund for a steady return. Up to you.

No.2 you can also looking into Private Retirement Scheme (PRS) or Unit Trust, as we know, it is to diversify our investment according to our risk portfolio, which means you invest in different assets to mitigate the risk.

In conclusion, you decide how you wanted to retire. And how much you want to save up for your retirement. There are still many investment tools out there to help you to achieve your financial goals. In AIA, we have our performing funds which are performing well at the average of 5% to 12% during the past years.

If you need any advice feel free to call me or leave a comment in the video. Here in Insurance Guys we are happy to help you to achieve your dreams. Remember, Always… Always to diversified your investment, save up early and don’t only depends on EPF alone.

I am Moses from The Insurance Guys. Have a nice day.

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