Start Saving Now Or Never

There is a significant duration of absence on this blog, my apology for not writing any, for so long. I wish to write on something after a long pause mode.

Today I met with a longtime client. He is an EPF’s regular and has been around ever since my early day with PM and stick still, until now. He is obedient enough to invest in unit trust once in every three months, and gets quite encouraging returns by doing so.

But there were baffles once I started talking about DDI (Debit Direct Instruction) or, in other words, monthly saving for the purpose of retirement. He seems sunk in a deep thought and doesn’t think it is necessary to do so as he already has EPF investment to cater that.



I wonder whether he realizes that based on a survey that was published in Berita Harian newspaper, on average most Malaysians spending all EPF monies supposedly for retirement purpose, in just two year after receiving them.

As most Malaysians are depleting their EPF (KWSP) money in just two years after retire, it is likely that we are included, too. Without money how do we go on with the reminder of our golden and sick-prone latter life? Where do you get the money from, every month, in order to maintain and to retain the previous lifestyle?

I firmly believe that a proper post-retirement financial plan has to be made for those who aren’t in a government sponsored pension program.

It’s always a good idea that as long as you work, no matter how old you are. Now is the time to start financial plan. The younger you are the better. But, just in case that you only realize this when you get older, it still a good thing. Better late than never.

I have deemed useful tips to share upon …

1) Register with EPF on the very first day of your working day. However, after taking into account of the cost of inflation, the contribution alone may not enough to sustain the entire retirement period. Therefore, it is always good idea to create your own retirement plan by putting aside at least some, say, 10% of consumable income for later use.

2) Increase personal saving as you getting old. If your start working at the age of 25 with 10% saving and decided to increase 1% every year, by reaching 35, you will save 20% of the income for retirement plan.

3) Put aside some of your annual bonus for retirement plan. Apart from that, you may have to revise retirement plan every year, to ensure that the money flow is enough and, to adhere to the original plan.