When we retire do we have a free place to stay? Else, better read this as early warning.

When we retire do we have a free place to stay? Else, better read this as early warning.

Governments have a huge part to play in lifting all out of life in poverty

Beyond just the subsidies… special payouts… cheaper price of goods via controlled prices… they have to ensure everyone in need of a place to stay has a place to stay and this place to stay is as affordable as it could be. It does not need to be an apartment yeah. Ensure those who does not have a few hundred ringgit extra also has a proper place to stay, to shower, to sleep soundly at night.

There are definitely some old buildings which could be repurposed for this. Just need our lawmakers to start focusing on this as well and not just the typical issues we see in media every day. So, this is my wish for the new year. May my wish come true as it will be benefit many people and hopefully we will not face the situation as below. Do read about situation in an advanced economy.

Article in abc.net.au It’s a disturbing statistic: half of all people renting in retirement are living in poverty.

That’s according to research from the Grattan Institute and the Australian National University.

Why would that be the case? It’s pretty simple: the age pension assumes home ownership. So, if you add on even the cheapest rent, you need extra regular income to fund it.

That’s where superannuation comes in.

Again we hit a problem because, analysts say, assuming many of us live to a ripe old age, renters will need a nest egg worth hundreds of thousands of dollars just to keep a roof over their head.Article in abc.net.au

EPF savings at the end of the day, assuming it’s RM390,000

Typical, life expectancy for Malaysians would be close to 80 by the time I retire. So, retire at 60 meant 20 additional years to live. RM390,000 is the amount which EPF says members should have.

RM390,000 divided by 20 years and 12 months = RM1,625. Do you think this amount takes into account rental as well? If we do a typical rough calculation. RM900 for food per month, RM300 for petrol every month, RM100 for electricity every month, RM50 for broadband, RM100 (average per month) for car maintenance, RM100 for incidentals… it does seem that the RM1,625 amount does not include rental… Or maybe it does and everything else we budgeted earlier must be reduced tremendously?

A place to stay for free is compulsory then

Even if we bought a property at 30, by the time we reach 60, we would have fully paid for it. So, we have a free place to stay. Alternatively, if we have parents who would give us a place to stay in the future, that works too. Alternatively, if we have a piece of land in our small town or kampung which we could get a simple house built on it, that works too.

Maybe all those other investments which we have done has given us so much profits that those profits are enough to pay for rental, than this works too. So, question is, are we investing sufficiently so that the returns would be big enough to sustain the rental for 20 years? Happy answering this question or taking actions to ensure we do.

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