While many people avoid the topic of death and sickness in aging, estate planning, and death, this is an important area in retirement planning.
The World Bank prediction that Malaysia would become an aged society by 2044 is a reflection of the increasing importance of retirement plans.
Recent EPF data indicates that more than half of all contributors under 55 had less savings than RM50,000. 60% of retired people used all of their savings within three years after retiring. If you don’t take action today to prepare for retirement, these statistics will give you a glimpse into the future.
It is never too late to begin taking steps to put your retirement plan into motion, despite the statistics and numbers.
Let’s start with the 6 stages that lead from pre-retirement through the end of our lives.
Find your retirement number
Once all of the above is done, it’s time to do the numbers crunching. It is important to determine how much money an individual will need for each stage in retirement.
Next, look at their current situation and determine if they have enough money to pay for retirement.
Congratulations! It is important to monitor your retirement funds throughout your life, especially during times like the current pandemic.
You need to determine what savings and investment strategies you can use to reach your goals if there is a lack of funding. You should also be prepared for an unexpected life event such as a critical illness, death, divorce, or financial loss.