Most people do not think about their retirement until they are approaching it. They get complacent and put their retirement planning on the back-burner from the moment they begin their career, and usually get too caught up in the rat race to remember checking this off their to-do list.
Just as Rome was not built in a single day, our retirement nest cannot be completed overnight as well. It takes many years of careful planning and discipline to save up for a secure and comfortable retirement. Therefore, it is imperative that we start planning for our retirement as soon as possible.
A key reason for placing retirement planning low in our priority list for financial security is the mistaken belief that our Employees Provident Fund (EPF) savings would be enough to last us a lifetime. But is that the truth or just wishful thinking?
Reality bites. Malaysians would generally agree that their EPF savings do not suffice if they are looking to continue with their current standard of living post-retirement.
As such, the process of saving for retirement must commence as early as possible as funds require time to accumulate. The longer we delay planning for our retirement, the shorter the time frame we have to accumulate savings, effectively limiting the compounding growth of our investment returns. This also means having to make higher contributions to our investments.
Don’t wait until it’s too late ― get started now!
