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Retirement fund. Retiring without much funds in EPF. Big worry for many.

retirement fund

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 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

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Take the statistics seriously for Retirement fund

Many years ago, a friend showed me his new SONY laptop. It’s RM8000. I asked him why not just get a Dell? He said Sony is better. Then I learnt he was buying it via a 24 months instalment plan.  This same friend drove his new car to a group meeting. It’s a local brand but he bought the highest spec possible. I was still driving my 10 year old Nissan Sunny then. He says all these specs is a must so that one feels comfortable when driving the car. Well, he took a 9-year loan for it. Think very seriously. There are things which are just need and there are things which are plainly just a want.

A cheaper notebook would have saved him RM4,000. Assuming in 10 years, he bought two times, that’s a RM8,000 saving. A cheaper and lower spec national car from a second-hand car dealer would save him another RM40,000 over 9 years. In 10 years, just these two items alone this friend could have been close to RM50,000 wealthier. I did not mention he has two handphones and both were higher priced than mine. One day, when we earn a lot more, we can splash a bit. However, until then, just remember that savings today meant more money tomorrow.

My wish

I do hope that more Malaysians would know that retiring without sufficient funds would be a disaster. Retirement fund does not appear suddenly. We can choose to work as long as we could but there will come a point when income will stop and that’s when we could see the amount of money we have in the bank continue to drop every day, week and month. Start sooner and not later yeah.

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Header Photo by Andrea Piacquadio from Pexels

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.


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