If you’re an employed Malaysian, your strategy for a retirement fund probably only includes stashing money in the Employees Provident Fund (EPF). What’s not to like about EPF? Contributions are made pre-tax, which lowers your taxable income.
But, what if the money you have in there is not enough for your retirement? Statistics published in 2011 have revealed that the average savings for a 54-year-old Malaysian only amounts to RM149,216.76, and 50% of EPF members who are retirees spend all their savings within five years.
This means that most retirees are broke by the age of 60 (if they retire at the age of 55). This revelation supports claims that EPF alone is not adequate to support us in our retirement years. Therefore, it is important for Malaysians to start contributing to a voluntary retirement planning scheme to supplement their EPF savings.
In collaboration with Private Pension Administrators, this infographic shows the reality of our current retirement plan and how the Private Retirement Scheme (PRS) is just the thing we need to ensure a long and fulfilling retirement years.
Think you ought to save with a PRS scheme too? Educate yourself to understand more about the Private Retirement Scheme to make a better informed decision.
How much do you need to contribute to PRS to meet your retirement goal? Find out using the PRS Retirement Calculator.
