For many, retirement can be one of the best and most enjoyable periods of your life if you plan ahead. The bad news is only 5% of Malaysians are prepared for retirement, despite a growing awareness for the need to prepare for one's retirement, many do not translate their plans into action.
Those in their 20s think they are too young to think about retirement, while those in their 30s or 40s think their doing enough because they have their EPF savings. By the time they are 55, it is just too late.
Effects of Inflation
In 1973, a car costs RM7K. In 2010, it costs RM43K. The price has gone up 6x. To buy a house in 1973 it costs RM50K, in 2010 it costs RM350K. The price went up 7x. Those days a fresh graduate pay was RM1K. In 2010, a fresh graduate pay is RM2K. The income went up ONLY 2x! So guys, this is the effect of inflation.
Furthermore, putting your money in a bank doesn't help much to counter the effects of inflation. The inflationary rate is now 4-5%. Banking FD is about 2.75%. If you put your money there, this means that the value of your money is becoming smaller.
Where do you want to be at retirement?
If you do not plan now, probably you will not have enough savings in your retirement years. You will either end up continue working in your post retirement years, or asking money for support, perhaps from your children.
However if you do your planning NOW, you could very well be on the way to enjoying your retirement years.
PROCRASTINATION
So what are you waiting for? What is keeping you from planning for your retirement?
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