Retirement planning

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http://biz.thestar.com.my/news/story.asp?f...mp;sec=business

Survey: Most Malaysians ill prepared for retirement

By HARIATI AZIZAN

KUALA LUMPUR: The majority of Malaysians are not only ill prepared for retirement, but are also unconcerned about financial security in their twilight years, according to an independent survey commissioned by Prudential Assurance Malaysia Bhd.

The Prudential Retire-Meter 2007 survey revealed that as much as over 80% of its 1,038 respondents were indifferent about having an ample coffer to lead a reasonably comfortable life after retirement.

Only 34% were saving regularly for retirement," said Prudential chief executive officer Tan Kar Hor.

"The survey shows that Malaysians clearly know what they want to do when they retire, but the majority are not actively planning for their retirement.

"When Malaysians stop working, they want to travel, spend time with the family and be more involved with the community. Financial security is crucial to fulfil these dreams.

"However, it is startling to learn from our survey that only 34% of Malaysians are putting money aside regularly for their retirement funds," Tan told reporters after launching the survey's findings on Wednesday.

He added that an alarming 60% of the people interviewed were found to be ignorant of how much they would need to save for their retirement.

"They believe that they just save as much as they can now and hope that they would have enough to cover their retirement needs," he said.

Tan noted that only 42% of the retirees surveyed said they were confident that they had enough to cover all their retirement needs, while 37% planned to return to the workforce.

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What is your opinion? What have you planned for your retirement. Share with us?

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Posted · Report post

Hmm.. to tell you the truth.. haven't really plan for retirement.

EPF? Not enough?

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Hmm.., how much do we really need for retirement? 100k? 200k?

I am actively saving every month, just that I am not sure what we really need for our "golden age".

Can please advice?

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Hmm.., how much do we really need for retirement? 100k? 200k?

I am actively saving every month, just that I am not sure what we really need for our "golden age".

Can please advice?

Escudo,

I think it's more of working the "problem" backwards. We need to know what sort of lifestyle that we will want to lead. At what age do you intend to retire? 50? 55? 60? Let's say 55. And we foresee ourselves living till maybe 75. so it's 20 years of duration. how would our spending be? meals, household groceries, utility bills, shopping for ourselves, our kids or grandkids, car petrol, car maintenance, travel expenses if we intend to travel at least once a year, medical bills, etc? how much would our epf able to provide us? if we're calculating based on an earning of 60k per annum, our epf yearly contribution is abt 13k. maybe by the time we retire it's abt 500k (with all the increments). if we r looking at 500k, we're merely spending only abt 2k per month. now we may think that 2k is enough also but then let's not to forget the inflation rates that is rising every year. so maybe in another 25 year time we need to spend abt 3k per month. so equation is 3k x 20 years x 12 months = 720k.

there are a lot of insurance schemes that provide retirement funds nowadays. if you'd like to know more, just pm me.

hope this helps.

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Hmm.. to tell you the truth.. haven't really plan for retirement.

EPF? Not enough?

for me, EPF is really not enough lor... that's why now opts for some other saving/ investment...

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Hmm.. to tell you the truth.. haven't really plan for retirement.

EPF? Not enough?

hung, i think if our epf can generate to 800k, it should be enough.

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Hmm.. to tell you the truth.. haven't really plan for retirement.

EPF? Not enough?

hung, i think if our epf can generate to 800k, it should be enough.

i did read in a survey before. if i remember correctly, it says that ones should have at least 1.5 million in order to leads a moderate life after retirement.

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i did read in a survey before. if i remember correctly, it says that ones should have at least 1.5 million in order to leads a moderate life after retirement.

Ya, i think that should be a more realistic figure (at least to us) ... we are trying to work towards that, hopefully ...

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i did read in a survey before. if i remember correctly, it says that ones should have at least 1.5 million in order to leads a moderate life after retirement.

Ya, i think that should be a more realistic figure (at least to us) ... we are trying to work towards that, hopefully ...

Yes, I agree with chooz and mhyap1, we need to have at least 1 million for retirement in order to have a moderate retirement life.

I studied on retirement plan before in CFP course and after calculation, the lecturer told us 1 million is a must for a better retirement life.

Gotta work really hard towards that! ;)

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Very true. We have to work hard towards the retirement goal. But if we just merely work for a company (tar gong chai), it's a little bit hard to achieve because our hard earn money is not working hard enough for us.

How can we make the money work hard for us? We need to invest.

Just ponder on this..Which stage do you think you are at?

Struggling - Earn RM0.50, Spent RM1

Surviving - Earn RM1, Spent RM1

Saving - Earn RM2, Spent RM1

Financial Freedom - Earn RM5, Spent RM1

I believe many of us trying to stay at the Saving level. Maybe some of us just surviving. Worst is those who are Struggling. How can we achieve financial freedom? There are many ways. Think through what are the best option for you and work towards it. I think, if I have 1mil by the time I retire, I doubt I have enough also if I were to look at going holiday, still living the same lifestyle I have now and so on. The inflation rate nowadays are really scary. Today, a cup of coffee may cost you RM1.20, 15 years later, a cup of coffee may cost you RM2.50! We ought to earn faster than the inflation rate.

During our parents time, they have a saying...to have kids so that the kids can take care of you later. Today, this won't be the case already because the kids themselves are just surviving themselves. How to take care of the elderly? I don't think I would expect my kids to support me when I'm old. I want to make sure I can support myself.

Just some of my thoughts about retirement planning. I don't mind sharing how I manage my wealthh here (duh! like I have alot!) :lol:

I'm more aware of all these financial planning thingy when I'm not single anymore. With so many commitments, it's really tiring to always have tight belts.

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if you all have notice, there's a service for this kinda planning. it's handle by (professional) Certified Financial Planner (CFP). at a small fee, he will plan out your financial according to the lifestyle you wan or are living, your assets, etc. then he'll advise you on how to achieve your financial goal in the time you set; i.e. you have RM20k asset and you wanna grow it to RM100k in say 8-10 years. CFP will do the calculation and advise you on which type of investment to make, real estate, unit trust, trading, business, etc. he'll advise you from the moment you pay till the time you reach your goal. this is a popular thing in overseas but yet to be widely know in Msia.

more info can be found here http://www.cfp.net/

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Posted · Report post

for retirement planning.....you can choose annuity plan in insurance...

like you save for 10 years or 15 yrs or 20 yrs....and after the plan matures, you can take few thousands per year until age 89 like that..or if you dont take out every year, you can let it grow by itself...u just need to pay for the particular time only...

and for this plan, the earlier you start the cheaper it is...

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of course for maximum gain...we should always diversify our investment and savings...

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Hi all,

For me the key to retirement planning is more a commitment to stick to a financial plan that would work for an individual.

The major concern here is in maintaining a comfortable level of lifestyle after we are no longer able to generate income through active work or employment. As to what level is comfortable, that depends on the individual.

Here are some tips that might be useful:

Investing:

As we all know, investing is the way to go if you want to be able to generate decent income streams without actual physical work or employment. The only drawback is that to invest, you first need to have capital. Thus before even thinking about what to invest in you would need to generate that capital first.

The first step to investing is SAVING. That means you will need to save part of your income in order to generate the capital with which you will invest.

Saving:

This actually means putting money aside when you get your income. Basic rule for saving is to put at least 10% of all income that you get aside. This 10% will serve as your capital to invest with. Please note that this 10% should NOT be touched for any other purpose except to invest.

Investment vehicles:

These are the different kinds of investment methods that one can choose to put money in e.g. the stock market, mutual funds, properties etc. This is up to the individual to choose as each has its pros and cons.

In short, to be able to invest one needs to be able to save first. This means that one need to be able to live below our means. If we always find ourselves needing to rely on credit to get through a month, that means we are living above our means and need to find ways to cut down on our expenses.

Remember, investing is for the long term. Periods such as 5, 10 or 15 years. If we are looking to get high returns in matters of weeks or months from our investments, then it is called 'speculating' and that is not much different from gambling.

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How much you need to retire?

At least 2 million rm.

If you retire at 55, at current life expectancy rates, you have 30 years to go!

Please remember rising costs, inflation, kids education, medical bills.

At my current rate of spending my financial planner projected 8 million rm for me.

Here's a retirement calculator:

http://www.oprah.com/money/jeanchatzky/gro...parents_e.jhtml

I mentioned this in another forum - I have a friend who's a financial planner, she's helping me plan for retirement, medical emergencies, etc. She's not a hard sell, friendly girl. If anyone wants to sit down for a chat with her, pm me.

But it's good to plan this in your youth, rather than wait till the last minute and panic.

Or live out your old years miserably. :wacko:

`CS

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Im planning to buy a retirement plan from Manulife Insurance from my agent

i saw their plan and it look attactive to me,

most important, i trust on the company's funding as the company has won berturut-turut the awards on managing the funding

if we plan early, we can retire early...dun hv to struggle la when we old

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Im planning to buy a retirement plan from Manulife Insurance from my agent

i saw their plan and it look attactive to me,

most important, i trust on the company's funding as the company has won berturut-turut the awards on managing the funding

if we plan early, we can retire early...dun hv to struggle la when we old

Make sure you know your figures. Future value of your money

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Read from The Star quite sometimes ago about an interview with CFP.

One of the point was before investing, one must keep a sum of money which can last for at least 6 months should there is unforseen circumstance like retrenchment. :blush:

E.g:

If monthly expenses is $ 2500,

So $2500 X 6 months = $ 15 000

Therefore you must keep $ 15 000 and musn't use it.

Any extra you can choose to invest.

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capricon that is a good reminder...very practical in times like this

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Hi All,

Based on what i have read in this thread majority of malaysian lack knowledge of insurance products, and if they were to have some knowledge it usually be about 1 product from 1 company only (normally). this i totally understand as majority of us run a hectic lifestyle and have no time to find out which product suits them best.

My name is Rayyan Harris and i'm a wealth planner with prudential. My main focus is on life,health and investment link insurance. The key service that i provide is education rather than selling. Therefore if there are any of you out there keen on finding out what can prudential give you feel free to drop me your name and number at rayyanworks(at)gmail(dot)com. The other thing is most of you would have bought various products from companies other than Prudential but over the years have forgotten what you are paying for, i can help reeducated you on your policy's contents free of charge. so just drop me your details in the email above so we can schedule an appointment.

PS: Key item to look into when retiring is a medical plan as you are no longer covered by the company. Maximum age to apply for insurance with Prudential is 60yrs old.

Kind regards,

Rayyan Harris

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I truly reckon that many Malaysians are not well prepared for their retirement. And also sad to say, most of us working class people, can hardly achieve RM8 mil without any investments or sort. But then again, the topic on how much is enough and when you should retire varies according to individuals. Ask yourself what you really want to do when you retire.

Spend less if you earn less and Save more if you earn more! Do not spend more when you earn more as this is a very dangerous theory. Saving should start as early as possible. Be it only a few hundreds as it is better than none at all.

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Personally, I feel that 55 is still a young age to retire. Furthermore, even if retire, I think from 55 - 65 is still can be doing semi retire stage where we still can do some light odd jobs to earn some income. Can even manage some investment still and earning some $$. So, when you say RM 2M, I think can still consider that some % is still can be earned during the "retirement" age. No need b4 age 55 savings must have RM 2M.

I for one for sure cant have so much savings be fore age 55 @@

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Personally, I feel that 55 is still a young age to retire. Furthermore, even if retire, I think from 55 - 65 is still can be doing semi retire stage where we still can do some light odd jobs to earn some income. Can even manage some investment still and earning some $$. So, when you say RM 2M, I think can still consider that some % is still can be earned during the "retirement" age. No need b4 age 55 savings must have RM 2M.

I for one for sure cant have so much savings be fore age 55 @@

Hi All, I retired at 50, and had made good preparations for that. But with a downturn in the world economy I had to do something to rescue my situation and generate a little more income.

Enchant is right, semi retirement is a good idea...I now have lots of free time & with a wedding date in June it is a good job. So semi retirement for me means that I now have a small online business, which is doing okay.

I don't believe in all these get rich quick schemes, and I don't believe in paying for information or computer software to help me get on the ladder. I just wanted a little more money so that my pot does not empty too quickly.

I was lucky enough to find a company who provided me with everything I needed to get up and running, at no cost at all to myself..... yes completely free, there is no catch to it either.

The company provided me with the tools, software, templates, products, the knowledge, good marketing tools and professional support to make it all happen..sounds to good to be true doesnt it?

They say that if it sounds too good to be true then it usually is not. Well this is truly the exception!

I am no computer expert, I can surf & email and that was it but at 55 years old, I have learned so much and my income is now on the upward turn.

Should anyone of you be interested please PM me and I will be happy to point you in the right direction...and it will not cost you a ringit, a baht or a penny.

Thanks

Connie K

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Reply to enchant's post

Hi All, I retired at 50, and had made good preparations for that. But with a downturn in the world economy I had to do something to rescue my situation and generate a little more income.

Enchant is right, semi retirement is a good idea...I now have lots of free time & with a wedding date in June it is a good job. So semi retirement for me means that I now have a small online business, which is doing okay.

I don't believe in all these get rich quick schemes, and I don't believe in paying for information or computer software to help me get on the ladder. I just wanted a little more money so that my pot does not empty too quickly.

I was lucky enough to find a company who provided me with everything I needed to get up and running, at no cost at all to myself..... yes completely free, there is no catch to it either.

The company provided me with the tools, software, templates, products, the knowledge, good marketing tools and professional support to make it all happen..sounds to good to be true doesnt it?

They say that if it sounds too good to be true then it usually is not. Well this is truly the exception!

I am no computer expert, I can surf & email and that was it but at 55 years old, I have learned so much and my income is now on the upward turn.

Should anyone of you be interested please PM me and I will be happy to point you in the right direction...and it will not cost you a ringit, a baht or a penny.

Thanks

Connie K

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