Congrats! If you are within this 12% Malaysians who could retire early
It was just a week ago when this topic of retirement came up in a conversation and I told my good friend that I still needed to work. Perhaps until my son enters university? Retirement is really not on my mind currently. As for when would my son be entering university, that’s probably 12 years away. So, I should be able to stop working a.k.a retire early by 57. Before 60 years old is considered retire early, right? 🙂
There’s a report which says that only 12 percent of Malaysians are on track to retire early. Oh dear, what will happen to the remaining 88 percent then? Hey, maybe some have retired? 🙂 Maybe some is on track to retire on time yeah. So, 12 percent is definitely not the only group who would stop working. Here’s that article for more information.
Article in themalaysianreserve.com According to a survey by Milieu Insight, employed respondents aged 18 to 49 years old from Thailand, Singapore, Malaysia, Indonesia and the Philippines reveal that many aspire to retire early but only a small percentage of those are on track for early retirement. This is 12 percent of Malaysians while another 55 percent of other Malaysians are unsure of how they could achieve financial independence to retire.
The survey utilised FIRE (Financial Independence, Retire Early), which is essentially about aggressively tightening belts and finding multiple sources of income in order to achieve early financial freedom. The common strategy towards early retirement among Malaysians is regular savings, followed by ‘doing financial planning’ and “investing.” Meanwhile 72 percent invests into investment funds, 66 percent into stocks and 65 percent into real estate. Here is the full article in themalaysianreserve.com
What’s your plan then? Since you may also be a Malaysian?
Do not wait too long yeah. The only thing that’s not coming back is time lost. Savings while it remains a virtue but savings should be for investing and not just saving for saving alone. Investing meanwhile is up to you yeah. Some may say stock market too volatile and FD is too slow while property is just too expensive but remember, all these would continue to be true yeah. Plus the fact that inflation will always be around and after a few years of inflation, only the property price will be enough to hedge against it. The rest would depend on your returns.
By the way, saving money can also be through these few ways too
Not buying expensive smartphone and getting a cheaper one every few years means that we could have saved over RM10,000 every 10 years. Not buying some overpriced property and instead choosing to buy slightly further away could save the buyer RM100,000. I know some will now point out that staying further means more money for petrol. Okay… please do the calculation on the extra in petrol spending and how many years before one could spend RM50,000 on the petrol price difference yeah.
Another one is try driving a Proton Persona for 12 years versus buying a new Japanese branded car every 7 years would save the person easily RM100,000 too. Suddenly you may now realise why this Proton Persona owner could buy 4 properties during the MCO period… There are more but I think these three are great examples why some times we just spend too much money.
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