Are Your Savings Sufficient For A Comfortable Future?

Are Your Savings Sufficient For A Comfortable Future?
Article Image

Retirement is an eagerly anticipated phase in our lives – a time when we can finally relax, travel, and enjoy the fruits of our labor. However, achieving a comfortable and secure retirement requires careful planning and preparation, no matter where you are in your career. It’s never too early (or too late) to start planning for your future.

The first step in retirement planning is to set clear goals and objectives. This includes deciding the kind of lifestyle you want to have in retirement, estimating the expenses you will incur, and considering any financial obligations you may have, such as paying for your children's education fees or clearing all pending loans or credit card debts.

5 factors you need to consider before retiring

back chevron

Here are some financial commitments you may have to make after you retire: 

  1. Financial responsibilities for spouse, children or other dependents.
  2. Children’s education expenses, like tuition fees.
  3. Housing loans or other outstanding debt commitments.
  4. Buying a new insurance policy if you no longer have coverage from your previous job or you have reached the age limit of the existing policy.
  5. The prices of goods due to inflation.

Thus, one of the most important aspects of retirement planning is saving for retirement. 

No matter how many years you have left until retirement - whether it's 10, 20, or 30 years - it's important to start thinking about life after retirement from now. Once you know how much money you'll need for retirement and how much time you have to save, you can find the best way to reach your goal.

If you're seeking ways to supercharge your retirement savings, consider making regular contributions, even beyond the mandatory rate, through the Voluntary Contribution feature. By taking advantage of this feature on our latest application KWSP i-Akaun, you have the opportunity to proactively boost your savings and enhance your overall financial wellbeing.  

Ultimately, it’s essential to have a plan for managing your retirement income once you retire. This includes determining how much you can safely withdraw each year, considering the impact of taxes and inflation, and planning for unexpected expenses or emergencies.


EPF retirement calculator

back chevron

To assess your current situation and identify potential adjustments for the future, KWSP i-Akaun provides a handy retirement calculator for you to work out the amount you’ll need to ensure that you’ll be able to comfortably enjoy your golden years without worrying about any financial burden. 

It provides a projection of your savings1, helping you determine if there is a gap between what you'll have and what you'll need for retirement. This insight allows you to refine your strategy and make any necessary changes to ensure a more secure future. 

The calculator is straightforward to use. All you need to do is fill in your basic monthly salary, average annual increment, annual bonus, dividend estimation, and desired retirement age, and the calculator calculates the total amount of your savings. Experience the convenience of this calculator as it reveals the approximate savings upon retirement, providing you with a clearer picture for your financial planning journey.

 


Plan your retirement journey ahead

back chevron

In a nutshell, it presents an estimate of the amount you could potentially save, the expenses you might incur during your retirement years, and how much money you could have left at the end of the year. If the chart shows that your projected amount is above the suggested benchmark of RM600,000 for adequate savings by age 55, you can look forward to a secure and comfortable retirement ahead. 


Estimating your retirement income needs is not an exact science. No matter your life stage or how much you've saved, a careful review of your expected needs and sources of income can help you prepare years ahead.

Retirement planning can be a complex and challenging process, but with the right tools and support, you can achieve your retirement goals. So – whether you’re just starting to plan for retirement or are almost retired, it’s never too late to take steps to improve your financial outlook and plan for the future.

From seedling to full bloom, you can grow your retirement tree and reap the benefits of a secure and comfortable future. So, the big question is: Will your savings be enough to secure a comfortable future? The answer to that lies in your hands. 

Download KWSP i-Akaun Now