Many Malaysians Can't Afford To Retire

Unlike nonsensical and unproductive issues raised by some politicians, this is something which will have a direct bearing on our lives. Retirement. It's not something many think about when they are young, and even those not so young in their mid-lives. Unless one has substantial wealth, one will probably have to work well into their old age.

Many youngsters start out in life full of optimism of striking it rich and retire young. Not many succeed. The question is, how many are prepared to work (as in earning a living) until they die? Not many. In our modern materialistic society most will try their best to accumulate as much wealth as they can because they want to retain their current lifestyles in their retirement age. Again many will fail.

A few prerequisites to be able to retire:

• must be debt-free
• must have a home to stay without paying
• 2/3 of current salary per month for expenses
• or minimum RM1000 to RM2000 per month for basic living expenses
• must have substantial savings for medical expenses or emergencies
• preferable without dependants.

From the time a person starts out in life, he will have 30 years to plan. Looks like plenty of time, but it's really not. In the 30 years, he will need to deal with inflation, rising cost of living and expenses, marriage, kids, education, cars, house, insurance, etc. Many in their 40s, 50s or 60s today realise that they could not afford to retire. Many of the young generation today will find themselves in the same situation in the future.

Rather than hoping, it will be wiser to prepare ourselves mentally & physically to continue working into our old age. If you managed to retire early and comfortably, then great. If not, well, at least you're prepared.

Personally, I feel it is perfectly fine to continue working as long as health permits. Given a choice, I'd choose good health anyday! 

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KUALA LUMPUR, Oct 5 ― Malaysia may be headed for a retirement crisis as tens of thousands of Malaysians depart the workforce for their golden years with less savings than is needed to keep them out of poverty.

According to recent figures from the Employees Provident Fund (EPF), the approximately 70,000 active 54-year-old contributors have an average savings of just under RM167,000 last year. The recommended minimum savings level is RM196,800.

The situation is made more alarming by the revelation that 69 per cent of all EPF contributors of the same age have less than RM50,000 in their accounts, as made known by the fund’s chief executive, Datuk Shahril Ridza Ridzuan, last month.

But even RM167,000 is scant consolation. As the average Malaysian expected to live until 75, retiring at 60 with that amount would mean surviving on just RM700 a month for the rest of their days.

With that amount, retirees would technically slip below the RM830 per month threshold that is indicative of poverty conditions in peninsular Malaysia, based on the Statistics Department’s poverty line income (PLI) for 2012.

According to Harveston Wealth Management financial adviser Annie Hor, a nest egg of RM167,000 could be made to last, but only if the retiree is completely free of debt and need not pay for accommodation.

“Otherwise you would be suffering a bit because if you just want a simple life, with three meals a day, maybe just get from point A to point B, petrol, you would need at least RM1,000 to 2,000 per month because, not forgetting when you are older, medical bills are expensive,” she told Malay Mail Online recently.

She added that her 60-year-old mother needs at least RM2,000 to get by in the city, even with her simple lifestyle.....

- See more at: http://www.themalaymailonline.com/malaysia/article/retirement-crisis-brewing-as-epf-savings-suggest-pensioner-poverty#sthash.cddlvIMN.dpuf

Selangor's High Income ADUNs

Selangor MB suggests Federal government review salary of PM and MPs - Bernama

Amid growing criticism over the pay hike for Selangor state assemblymen, Menteri Besar Tan Sri Abdul Khalid Ibrahim (pic) today proposed that the Federal government review the salary of the Prime Minister and Members of Parliament. He said it was about time the Federal government take a similar approach to that of the Selangor state government... Source

Name your charity, Selangor tells assemblymen unhappy with pay rise

The Selangor government has taken its controversial “donation” call to assemblymen who reject the salary increment to the next level by preparing pledge letters for them.

Exco member Datuk Teng Chang Kim said those who felt the increment was too high should sign the letter authorising the assembly to donate their increment to charity.

"We will be glad to help you donate the money," he said, adding that the letters had been circulated by Sekinchan assemblyman Ng Suee Lim. - Source

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I suppose the whole country is already aware of the Selangor state assemblymen, both BN & PR, impending windfall. Rejoice, people of Selangor, for starting next year, you will be represented by incorruptible, high income earners!

You know, the lack of common sense of some people never fails to amaze me. And their arrogance are even more amazing. Those that take the cake, however, are those who blindly defend and make excuses on behalf.

1. Income levels have absolutely no relation to corruption. Lack of integrity & morals is what leads to corruption.

2. Public office is not private sector. One just needs to be elected, the other have to prove their capabilities and knowledge or skills to be hired.

3. Politicians can give themselves raise their own salaries, employees can't.

4. Lastly, pointing out that you are less corrupt does not mean you are not.

Reasons given to justify such obscene increments are just plain dumb. Come on. Don't insult our intelligence. And it was most entertaining to see the 2 persons who got the highest increments, the Speaker & MB, trying to defend their ridiculous pay hike. I mean, do they seriously think they are talking to farm animals?

"Bad excuses are worse than none."

Actually, they can't even come up with a single good reason for it, because there is none. The only reason is greed. What else could it be when they give themselves half a million a year because they say they deserved it? To me, it is corruption. Only that it does not qualify to be termed as such because it is done legally. Why not go all the way then, since you think you deserve it?

Selangor is touted as a rich state with about RM1Billion in reserve. Again, rejoice Selangorians! After all the cost saving and frugal administration all these years, and telling the world how well they have performed, what do they do with the money? Help themselves to it of course! And the MB even tells BN to do the same so that he can have his cut? Do they even listen to themselves talking?




Tell me honestly, did any people from the state benefited directly from the state's funds? Has your life improved tremendously, if at all? A PR supporter I know in his 60s, who requires medical treatment, still has to find work to pay for his medical and living expenses. What is the point of going gaga over these political parties and their politicians if you don't benefit? Or were you mislead into supporting the wrong things in the first place? Things like governance, freedom, rights, ideologies, etc. are abstract, non-tangible.

Voters should be demanding for tangible things, like free medical care, affordable houses, clean water, free education, child allowance, benefits, subsidies, and such. Get the allocations for schools, childcare, medical care. You yearn for the way of life like those of developed countries? Well, Selangor is a developed state!

 Demand these from your State Governments now when they have the funds. It is your right. If you don't, after they are done, there won't be any left. What is the point of voting them to office when you don't get anything? Think, people. Think! They are going for the money!

 Politicians think they DESERVE it? Don't you, the people who put them there, think you DESERVE it too? 

Today, the road conditions are still bad, water still dirty, open burning still going on, etc. The only thing the PR state govt. has done as soon as they took over the state in 2008 was to penalise consumers by implementing the stupid "no plastic bags day on Saturdays" and making shoppers pay 20 sen for each bag. That is all they are capable of?

In light of recent events, it's about time the people of Selangor start questioning their ADUNs exactly what they have done FOR the people. Anyone with a bit of common sense can see that these politicians, both in BN & PR, are increasing their own salaries and incomes in light of rising living costs and inflation. Other states are following suit, Perak, Penang, Johor. Next will be the MP & Ministers' turn. In the coming years, they will be buffered and will lead a rather comfortable life while the people will be struggling to cope with rising costs. I doubt any employer out there will be as generous to their employees.

In the first place, there should not even be any increments at this time, amid a sluggish economy. Shouldn't governments be prudent and help the people instead of rewarding themselves? Afterall, they keep telling the people to be frugal and change lifestyle.

The voters have indeed been taken for a ride, and deservedly so. They were indeed a passionate lot when protesting fuel hikes, toll hikes, electricity hikes, or any other hikes. They were the loudest when in comes to criticising the Federal Government, but when it comes to their favoured political parties, they are apologetic.

Hypocrites! Birds of a feather do indeed flock together.

It's sad to see the people taken advantage of like this. Now that you've seen their real intentions, do the decent thing and start looking out for yourselves for a change.

Stand up and demand what is due. Do not let them take you for granted! It's about time they did some real work instead of getting free rides!

Money on the Mind

Food for thought... wealth & values.

I find there's a lot of truth in this experiment. Wealth changes a person. Come to think of it, I have noticed fist hand, among friends who became rich, or wealthier. There's an very noticeable change in their attitudes and character, before & after. The curious thing is that they are absolutely oblivious to the change themselves. It seems to occur subconsciously, and they displayed the exact traits and behaviour as shown in the Monopoly experiment in the video.

Watch the video, and then as an experiment, and observe the people around you who started off not wealthy and later had acquired wealth.

On the other hand, I have met people, who are extremely wealthy, who are among the nicest and most humble people I know.

In my opinion, those who are most prone to display the traits highlighted in the video fall into the "nouveau riche" or "new rich" category... it's actually a common behaviour across the world.