Retirement fund. Retiring without much funds. Big worry for many.
When I started working in 1998 after my graduation, retirement funds was never in my mind. I believe that if I continue to work until 56 and I continue to have savings in the EPF, I should be just fine. Fortunately, I realised that property was a necessity. Bought my first one and the rest was history. Gratefully, I realized protection is compulsory. Happily, I learnt more about other investment opportunities too. Thus, I think I have been able to slowly build up my retirement funds versus only realizing it much later. Starting earlier has helped me I believe.
Article in themalaysianreserve.com. Economist Dr Nungsari Ahmad Radhi says that there needs to be a policy to repair the safety net for employees which has been made worse due to the pandemic. He disagreed with the government’s decision to allow EPF members to withdraw savings, even for economic relief during the pandemic.
He said, “It was a very bad and irresponsible decision. Obviously, it will be the low-income employees, who have low savings at the EPF, who will withdraw and be affected the most in the future.”
Dr Muhammed Khalid said, “It is not shocking that EPF said nearly half of the members below the age of 55 have less than RM10,000 in their account.
“Data showed that due to the post-Covid-19 related withdrawals, median savings of the B40 (bottom 40% group) in EPF is just slightly RM1,000 and median savings of the M40 (middle 40% group) is about RM25,000. Majority of Malaysian workers will retire super poor.” Please do read for more details here: Article in themalaysianreserve.com.