By Lim Jun Min, Monday, February 26th 2024
Malaysia Consumer Price Index January 2024
(Photo by Department of Statistics Malaysia)
SELANGOR: Are you able to retire comfortably in this current time? Have you ever thought of whether the current economy is stable enough for you all to retire? Or how long can you retire comfortably before going back to the workforce? With the rise of inflation, the price of essential items and basic needs such as foods, beverages, health care and even housing has been slowly rising alongside with it. The elderly may have to continue working, even after retirement just to survive.
According to the Department of Statistics Malaysia (DoSM), there’s a price increase for the following essential items and basic needs, 2% in Food & Beverage (F&B) and Housing, Water, Electricity, Gas & Other Fuels, 0.7% in Transport, 2.4% in Health, and 2.5% in Personal Care, Social Protection & Miscellaneous Goods & Services. New Strait Times mentions that, according to Employees Provident Fund (EPF) calculations from the previous year, found that only 4% of Malaysians could afford retirement.[JT2]
Community services at retirement age
Chew Wee Lee likes to self-actualize at retirement age
“I will continue to build up my EPF savings, in case inflation rise, my EPF will be able to cover that unexpected rise of prices for me to retire comfortably” said Chew Wee Lee, a 64-year-old senior lecturer working at her post-retirement age at Universiti Tunku Abdul Rahman (UTAR).
Chew Wee Lee has been working for over 20 years since her graduation to gain funds and prepare for her retirement at an early age, as she is aware of the rise of inflation from a young age. “After my retirement, I will continue to teach children basic subjects to prepare them for their upcoming exam, as they have difficulties understanding” said Chew Wee Lee. She does this at an elderly age as she has more free time to educate youngsters and most importantly give back the community the knowledge, they have given her when she was younger. Chew Wee Lee added “I don’t have the course materials to teach the children about the importance of money, but I think my coordinator at the church can get a financial lecturer to talk about financial literacy to educate the youngsters”, as she wants the children’s to be educated about the rise of inflation and the importance of savings. Chew Wee Lee advise “Try to plan as much as possible for financial planning, and then try to plan for your retirement as well as this is important”. When it comes to planning, Chew Wee Lee strongly emphasis the importance of having a budget to help keep track of your spending so you don’t overspend.
Expenses first, retirement later
Thinavan a/l Periyayya says “We can fight inflation”
“Nothing is certain [retiring comfortably], so, we just have to take the leap of faith” said Thinavan a/l Periyayya, 64-year-old associate professor working UTAR.
“The only challenge I have is trying to settle the investment that I have in my apartment” said Thinavan a/l Perjyayya.[JT4] To overcome this he added that “I would do a part-time position in UTAR, where I have to be here 50% of the time but the other 50% I would be free, this is so that it would provide a steady disposable income” it also help him to survive against inflation. “Once you start working, assuming you earn RM1,000, every RM1,000 you earn, 30% you saved, you can split it, 20% you can save in investment such as unitrust, the other 10% you can top up your EPF” advised by Thinavan a/l Perjyayya to students who are going to enter the working force.
The bills won’t pay itself
Anthony Gandolfo Miranti says “I would like to retire”
Anthony Gandolfo Miranti, 51-year-old lecturer and head of the department working at Universiti Tunku Abdul Rahman at Faculty of Creative Industries mentioned that with his current financial condition, he won’t be able to retire anytime soon. This is because Anthony Gandolfo Miranti mentioned that with him being a foreign worker, he doesn’t receive any Employees' Provident Fund like the rest of his Malaysian colleagues.
When asked about his retirement plan, he mentions that inflation has taken a toll on his retirement plan not only for himself but also for his whole family as well and as a result, he will continue to work at post-retirement age. Anthony Gandolfo Miranti states that “The problem is, they [Anthony family] factor all of the stuff [essential items and basic needs], they’re still running out of money because inflation did go up and it’s hard to plan for inflation because you planning in terms of the dollars you making at that time.” Anthony Gandolfo Miranti's advice to all youngsters to avoid any financial issues is always to have a budget.
Plan now before inflation rises
Cheng Kin Meng a young professor is currently planning for retirement
Cheng Kin Meng, a 35-year-old assistant professor working at Universiti Tunku Abdul Rahman states that with the current rise of inflation, he is worried for the future of our country, as our ringgit Malaysia value is slowly degrading, thus he wants to plan for his retirement plan now rather than at a later age.
When asked whether he wants to work at retirement age to help survive during rise of inflation, he mentions that he will continue to work not for the money but for his mental health. Cheng Kin Meng states “I would not be so sure if my children will take care of me or not, but I still need some savings. That’s why I think that after so many years I’m working since 2013, I have been working until now. Even after many years of working, I think my savings are not enough, after some years even after 60, I will be still working as well and also doing something I enjoy the most. I won’t be relying on my children.” Cheng King Meng advises all youngsters to always improve themselves, mentally, emotionally, physically, and financially when they are still young as this will help them in the long run.
References
Kaur, S. (2024). Poverty after retirement? NST Online. https://www.nst.com.my/business/corporate/2024/01/996049/poverty-after%C2%A0retirement
Department of Statistics Malaysia. (n.d.). Consumer prices | OpenDOSM. OpenDOSM. https://open.dosm.gov.my/dashboard/consumer-prices
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