Hitting RM1.3 million in EPF, can we achieve it or not?

Hitting RM1.3 million in EPF, can we achieve it or not?

EPF’s goal is for everyone to have minimum of RM390,000 by the time we retire

RM390,000 divided by 20 years and divide again with 12 means we live another 20 years after retirement. This comes to around RM1,600 per month. Well, EPF is not supposed to be the only savings we have, right? Perhaps we have a fully paid property by the time we retire which is half a million ringgit? Perhaps we have RM50,000 in Fixed Deposit which we earmarked as emergency fund. Perhaps we have other funds here and there but yes, EPF is NOT supposed to be the only fund we rely on when we retire. That’s suicidal / disaster waiting to happen.

No property investment and the advice is personal finance??

This is also WHY any personal finance EXPERT which does not include advice about property investment in the calculation is really NOT that qualified. Unless of course you have RM500,000 extra just to pay for rental for 20 years after retirement. Which is foolish… Better to have ONE fully paid property which we can even sell and then we use that money for whatever reasons we like.

Do read the latest news about some chatter on EPF savings.

Article in thestar.com.my “Having at least RM1.3mil in retirement savings might be a challenge for most Malaysians, but experts said the figure isn’t impossible if one remains disciplined in ensuring consistent savings and employment. 

They also urged the government to gradually raise the retirement age from the current 60, so Malaysians can accumulate enough retirement savings after factoring in the rise of costs of living and longer life expectancy. 

Financial planner Jarvic Lau said having RM1.3mil in retirement savings is doable, if a fresh graduate starts working at 25 with a monthly salary of RM2,500, enjoys a 5% annual increment and draws a final salary of RM15,000 at the age of 60. ” Read the full article here: thestar.com.my

RM1.3 million is thus achievable for Malaysians in T20

Take a look at the below. If one started working and is earning a T20 income of RM12,567 for maybe 10 final year before retirement, then this RM1.3 million is achievable. As pointed out, we can still start at RM2,500 monthly salary at the starting point too. So, what’s the starting point for fresh graduates of different disciplines? Do read on after the below to see and you may see that unless fresh graduates bankrupt themselves by credit card debts, it’s generally doable.

Happy graduating with a good degree and joining a good company. Reminder that we either keep the money we pay every month for a roof over our head (buy a home) or we lose them all to the one owning the property. Guess who will be rich at the end and we will realize why the owners of homes who rent out their property are called landlords…

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