Proper planning needed towards retirement savings
KUCHING: EPF Retirement Advisory Service (RAS) officer Ronney Khairuddin described this as a worrying scenario, given that most Malaysians would need more savings for longer retirement days.
“The amount of RM50,000 is not enough to cater for a 20-year retirement period based on a life expectancy of 75 years,” he said at a talk ‘Retirement Advisory Services – Your first step to retirement planning by EPF’ held recently.
Ronney reminded that Malaysia ‘is fast becoming an aged nation’ as well as the pertinence of having a retirement plan.
He said although the retirement age in Malaysia is 60, Malaysians who are still productive can continue contributing to the EPF up to the age of 75.
“If you’re still working beyond the age of 60, you are still eligible for EPF contribution until you’re 75 years old. We encourage EPF members to continue contributing for the compounding benefits.
Ronney asserted that this was not the time for Malaysians to spend more but a time to save as much as they could.
He therefore advised eligible EPF members to go for flexi instead of full withdrawal while stressing: “Your money is safe with EPF.”
He said EPF members especially the ‘sandwich generation’ should not simply utilise their EPF savings, referring to individuals who need to raise their children and look after their parents at the same time.
Those residing in Kuching who wish to start planning their retirement, should visit the EPF RAS counter at EPF Sarawak office located at Bangunan KWSP, Jalan Uplands, Kuching. KUCHING: Agensi Kaunseling dan Pengurusan Kredit (AKPK) affirms that managing your finances is crucial towards towards retirement planning.
According to AKPK head of Sarawak region Marlene Margaret Nichol, prudent financial management is the key towards ensuring quality of living especially during the golden years.
One way to do so is via its Debt Management Programme (DMP) whereby AKPK assists financially distressed consumers to regain financial control – a service the agency is providing for free.
The agency assists consumers to work out budgets that will help them meet their loan obligations and living expenses, thereby minimising nonperforming loans and foreclosure of houses.
Individual borrowers can seek AKPK’s assistance in rescheduling or restructuring their housing loans, hire purchase loans and personal loans or outstanding credit/ charge card balance due to financial service providers under the purview of Bank Negara Malaysia. “We truly hope to provide assistance to individuals who have financial problems paying their debts to banks or loans,” she told The Borneo Post. “We act as the middlemen between borrowers and lenders, ensuring that borrowers manage their finances wisely and pudently in the process.” Other services provided by AKPK include various modules targetted at different audiences,such as tertiary module for college students, entry level workforce module, modules for starting and raising a family. AKPK also provides pre-retirees with a planning module which complements the retirement advisory services by the EPF. Meanwhile, AKPK also provides financial counselling whereby the agency provides advice on managing finances one-on-one.
“AKPK can advise and even liaise for enrolment in Debt Management Programme where we assist individuals to help pay back at lower interest ratres and lower interest payments.
“They can lower that interest rate – depending on their income – and can convert that credit card loan into a more manageable term loan with a fixed monthly repayment.”
Marlene highlighted that those declared as bankrupt cannot enrol for the Debt Management Programme as a positive net disposable income is needed.
“Long term loans such as housing loans – we can help propose to your banks to reschedule your loans,” she said, adding that AKPK has collaborations with several banks to assist borrowers to assist their loans with lower interest rates.
All these services provided by AKPK are free of charge, she added, welcoming interested members to visit AKPK’s Sarawak office at Level 1, Bank Negara Jalan Satok. For outstation customers, AKPK makes monthly trips to Sibu, Bintulu and Miri.