Sep 14, 2014

Retirement Planning

Do you remember the good old days when a worker stayed with one employer and retired with a "nice pension"? Those days are so long gone, maybe for good. Today, you need to take charge and plan for your own retirement security.




Relying on EPF for the bulk of your retirement income is not at all the best thing. And sadly, companies today don't have traditional pension plans, not like how it use to be.

How much income should you plan on needing when you retire? A financial planning rule of thumb is to figure on needing 70% to 80% of your pre-retirement income. That income is the income you'll be earning at the time you retire, not the amount you're earning now.



In doing your projections, be sure to consider the effect inflation can have on earnings and expenses. Even at the relatively low 3% annual inflation we've been seeing in recent years, someone earning RM30,000 today may be earning RM40,000 in 10 years, RM54,000 in 20 years, and RM73,000 at retirement in 30 years if he or she receives nothing more than cost-of-living raises.

You can ask about the use the our Retirement Planning Calculator to estimate what your retirement income needs might be and how much money you should be investing now to be able to meet those needs when you retire.

Once you've determined your retirement income needs, you need to plan for meeting those needs.



For more info, please sms or call Miera 012 338 6033

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