Ready for Retirement? 6 Signs You’re On the Right Track!
Retirement planning can be overwhelming, especially with statistics like 6.1 million EPF members having less than RM10,000 in their accounts. But don’t worry! With the right approach, retirement can be a fulfilling chapter of your life. How do you know if you're truly ready? Check out these 6 signs to find out:
1. You Can Sustain Your Lifestyle
Imagine continuing your current lifestyle without worry. To estimate how much you need, use the 25x Rule:
- Monthly Expenses: RM4,000
- Annual Expenses: RM4,000 x 12 = RM48,000
- Retirement Goal: RM48,000 x 25 = RM1,200,000
This means you’ll need RM1,200,000 to comfortably maintain your lifestyle for 25 years. Mix your investments, assets, and savings to reach this goal.
2. You’ve Got an Emergency Fund
Life is unpredictable, so having an emergency fund is crucial. Aim to save 3-6 months’ worth of expenses in a high-yield savings account. This way, your money is not only safe but also earning interest.
3. You’re Free of Bad Debts
Clear out bad debts like credit card balances and high-interest loans before retiring. If you have debt, consider a consolidation loan to simplify payments and potentially lower your interest rates.
4. Healthcare Costs Are Covered
Healthcare costs can soar in retirement. Although public healthcare in Malaysia is reliable, having additional insurance can be a lifesaver. Get coverage early to benefit from lower premiums and reduce out-of-pocket costs.
5. You’re Smart with Your EPF
EPF is a cornerstone of retirement income for Malaysians. Consider delaying withdrawals to maximize your benefits. Your funds will continue to earn dividends, potentially increasing your retirement income.
6. Your Investment Portfolio Is Solid
A stable and diversified investment portfolio is key. At a younger age, you can take more risks, but as you near retirement, focus on steady growth. Utilize platforms like EPF i-Invest to diversify your investments.
Boost Your Retirement Savings with Eastspring!
If you’re ticking off these signs, you’re on track. Still need help with your investments? Eastspring Investments can assist you in diversifying your EPF savings.
Special Offer: Get RM100 Touch n Go Reload when you invest with Eastspring via EPF i-Invest into any of their EPF-MIS-approved funds before 30 August 2024!
Learn more about this offer and start preparing for a secure retirement today by visiting Eastspring’s website.
Disclaimer: This advertisement is for informational purposes only. Please review the fund’s prospectus and product highlights sheet before investing. Eastspring Investments Berhad is a subsidiary of Prudential plc.