Have you ever wonder, did my retirement money in KWSP will be enough for me to live another 20 years without working on my 50's or 60's?
Have this question ever come to our mind?
If you live in Malaysia, you will definitely know what KWSP stand for.
It is a group for retirement saving that employee need to pay for employer accumulative every year.
And it can only be withdraw once you turning 55 years old or 60.
Well, let me break it down some calculation for so that we can get a clearer picture what will happen.
How much money that you think you need to survive in a month during your age 55 y/o? Is it RM 1,500 or RM 2,000.
For example, I take RM 2,000 a month for the whole expenditure. (Of course, minus all of your debt. Considering that we already finished all mortgage & loan payment)
Current age = 30 y/o Plan retired on = 60 y/o Period = 30 years Estimate retirement period = 20 years
Estimate monthly expenses = RM2,000
In 30 years RM2k amount = RM4.8k (inflation rate: 3%) Amount required for 20 years of retirement = RM4.8k x 12 month x 20 years =RM 1,152,000
Therefore, you required to have RM 1.1 million just to survive for 20 years of you retirement. But now, in my KWSP saving account on have............. RM 300k?
Sad story is real guys.
Which means, it is not enough right? In shortage of another RM 800k.
Crazy right?? Well this is the reality of our world. Where as years pass by, the inflation rates continue to drag us down.
What can we do then? You can choose to keep or save your money at the right places. The place that can give you high return thru years of saving. Places where money can also works for you.
So if you are interested in generation and growth you saving money. Please feel free to contact me, and I will explain further.
Also, some example of Financial planning for my cases study that I had prepare.
Case study below also include with Hajj planning & house buying.
Let us all become wiser and choose the right track.
Love, writer.
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