Most well-to-do Malaysian employees are not particularly looking forward to retirement, fearing that they will not be able to live their golden years.
So instead of relaxing by fulfilling your dreams or spending quality time with your family in retirement, you have to stress about surviving.
According to the Employee Provident Fund (EPF), workers must reach at least RM240,000 in savings by age 55 to support their retirement.
This will provide a minimum stipend of RM1,000 per month for 20 years (ages 55 to 75) in line with the county’s life expectancy.
But surprisingly, as of December 2022, only 30% of EPF contributors will have savings of RM240,000 or more at age 55.
The rest fell short due to cash flow needs and early withdrawals to cover low wages.
The COVID-19 pandemic has exacerbated this problem.
The Securities Commission of Malaysia (SC) said in its 2022 annual report that the problem has arisen despite a number of private and public avenues available to Malaysians for retirement savings and investments. It pointed out.
Formal retirement savings plans cover only about 60% of employees, most of whom are already facing retirement savings shortfalls.
The remaining 40% of the workforce is therefore uncovered, and the situation could get worse as more workers embrace self-employment and enter the gig economy.
Financial planners say rising inflation, rising health care costs, and longer life expectancies are impacting their ability to retire happily.
This means that the majority of Malaysians may have to work past retirement age in order to save more money or put their money to work more.
So how can we stay ahead of the curve? Early financial planning is key and a critical aspect of a sustainable future.
The ideal retirement plan should provide overhead shelter, good medical coverage, and savings in the bank.
Financial experts have identified two main ways to improve your financial health. To reduce spending and increase wealth and income.
The latter in particular is one surefire way to replenish your savings for a secure future, but with financial fraud on the rise, it’s not as easy as it sounds.
With the aim of helping Malaysians plan for a secure future, SC will hold ‘Bersama InvestSmart@Penang 2023’ at Queensbay Mall from 26th to 28th May to address financial fraud and We are raising awareness of the importance of financial planning.
Under its flagship investor empowerment programme, InvestSmart, the fair aims to give retail investors more confidence and skills to make informed decisions when investing in the capital markets. increase.
The event brings together capital market institutions, associations, industry players and other relevant institutions.
Visitors need to tap into the wealth of information available to better prepare them to meet their immediate and long-term financial goals.
Free one-on-one financial planning consultations with certified financial planners are also available under the #FinPlan4U initiative (no pre-registration required).
In addition to talks and panel discussions by industry experts, there will also be exhibitions by more than 30 exhibitors, excluding the lottery.
Capital markets products and services such as equities, bonds, unit trusts, private placement retirement plans (PRS), exchange traded funds (ETFs) and equity crowdfunding (ECF) are available.
For more information, please visit InvestSmart social media pages or www.investsmartsc.my.