Importance Of Retirement Planning In Malaysia

The rosy picture of a comfortable retirement is becoming a distant dream for many malaysians due to factors such as longevity risk and a growing ageing population.

Importance of retirement planning in malaysia. As you near retirement you should be able to shift the money to safer avenues so that you can depend on dipping into it after retirement. We often go on an autopilot cruise mode through adulthood taking things on as they come whether it s buying a house raising a child or planning for the next holiday. Now that you realize the importance in retirement planning you can start developing your retirement plan today. Miscalculations in terms of your retirement fund can be caused by common misconceptions such as these.

In essence people are worried about retirement. Now you ll need to ascertain the number of years you have before you hit retirement age. Still many do not realise the importance of planning for the various phases of their golden years and their long term care needs as well as how to effectively protect their estate when doing so. Last year the employees provident fund epf raised the minimum savings target to rm228 000 by the age of 55.

Assuming that you plan to retire at 55 simply subtract your current age by 55 and you ll get this number. However with the rising cost of living and a longer lifespan for malaysians coupled with increasing inflation. A good retirement plan should be segregated into investment accumulation and withdrawal phases. Until your early 50s you should focus on investing and building your corpus.

Retirement planning is rarely the top of mind topic for many people except perhaps for financial planners. Currently the retirement plans available in malaysia such as employee provident fund epf. This means a monthly retirement income of the only rm950 per month assuming a life expectancy of 75 years old. Best retirement plan malaysia.

Importance of insurance for. So is your retirement fund sufficient. So if you are 45 the number of years you have before retirement is 55 45 10. With all the talk revolving around the epf withdrawal age lately the topic of the best retirement plan in malaysia seems to be on the tip of everybody s tongue.

The importance of retirement planning is a call in malaysia due to fast ageing population in the country.