Saturday, January 14, 2017

Twilight Years

pic sourced from Facebook

I hope the elderly man (pictured) is going through the rubbish because he wants to separate the recyclables from the other trash, spurred by his love for the planet.   
Imagine a future where the growing grey-haired population will have to depend on a smaller working population.  This will lead to the public having to bear with the rising cost of  healthcare and social welfare, which will be followed by a hike in taxes.

With the current number of  14.5 million working Malaysians in the country and 89 per cent earning less than RM5,000 a month, only 6.7 million are active EPF contributors.  Of these, only 22 per cent have saved enough for retirement to sustain for 20 years.      - source  Don't Depend On Just Your EPF To Survive In Old Age

I used to say: "Save so much for what? May not be around for long after retirement", and my friend's swift reply was "What if you survive for another 10 to 15 years?"

According to EPF, RM196,800 is the minimum amount needed for retirement, and the monthly spending must not exceed RM820 for 20 years.

And there must not be any outstanding housing and car loans when you retire.   Pray also that you have good health in the twilight years.

I asked a friend yesterday how is he planning for his retirement.  He is 36 years old.  His reply was: "I don't even know if my salary is coming in or not end of the month.  How to think about retirement planning?"

Many people are also living from pay cheque to pay cheque with very little money left for savings. 

I have insurance, some say.  But insurance won't pay for the wheelchair, the transportation charges, the parking fee.  Try parking your car at a public hospital for one whole day and the cost may be higher than the medical fee.

For those who still think insurance can take care of everything, read this sad story Cerita Duka Sebelum Kematian which appeared in a local Malay daily.  

Insurance is important but you still need cash. 

Cultivate a culture of saving money and don't depend only on EPF savings. 

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