What happens if we have no property when we retire?

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Okay, for this article, let’s just only show numbers, numbers and numbers yeah. Haha. First up is Malaysia’s life expectancy. That means how many years we will be living up to. Statistically, as at 2016, Malaysians are expected to live to 75 plus. Except for Singaporeans, we are living longer than most of our neighbours and perhaps that’s one big issue yeah. Singapore’s retirement age is 62. Britain’s retirement age is expected to be 67 come 2030. I hope the sign is very clear? Nope, not about senior citizens become healthier… it’s about financial issues lah…

Retiring at 56 without a property? Assuming rental stays constant at just RM1,000 regardless of when we retire. RM1,000 x 12 months x 20 years (till 76 years old) = RM240,000 just for rental alone. Shall we add in the electricity and water bills? Say, we stop using air-con and just a small fridge and that indispensable washing machine and other small electrical appliances, we probably can get by with RM100 per month plus RM10 for water bill x 12 months x 20 years = RM26,400. Total just for a very simple home + utility bills? RM266,400.

Children could take care of us. I really do hope my daughter and my son will take care of me when I am old. They love me so much and rely so much on me currently. Haha. They are 6 and 4 respectively. However, let’s be very realistic. Even in countries where they are already a high income nation, we have seen cases after cases of old folks being forgotten in some retirement homes in the same country or in another country. Let’s be realistic here yeah. Give the children some break because if we need RM266k for rental when we retire, if they want to care for us, they will also need to have this amount for us too…

Continue working as an option? Of course we could choose this route. It could be as a GRAB driver? It could be as a cashier in the supermarket? Assuming we continue to work for 10 years after 56 and we actually retire only at 66 and assuming our earning is more than enough to cover all our expenses including rental, that means we still need half of the RM266k when we actually retire at 66. So, question is, do we have that RM133,000 when we are 66?

What about food and others? The above is just about having a roof over our heads. We have yet to include the food (which can be as simple as could be) and drinks (which could be just plain water) and transportation costs? Maybe MY100 is all we need to spend but even RM100 per month x 12 x 20 years is still a substantial RM24,000. RM10 for three meals per day? RM10 x 365 days x 20 years = RM73,000. Total for these must spend = close to RM100,000.

Think rationally. That day will definitely come. Work hard, go up the corporate ladder so that we earn higher salaries. Invest those money and BUY a property because we really do not want to worry about having a home to stay when we retire and income stops. Please do not even start thinking that perhaps I rent a room instead of a home when I retire? Whether that happens or not, the goal is to ensure we actually have a home which when we retire could even be rented out and we take just ONE room since the thought is just to have a room instead of the whole house. By the way, we did not cover vacations yet… The above simply meant we are happy sipping coffee, munching roti and watching tv everyday. Happy understanding.

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