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BANGI: Attitudes Employees Provident Fund (EPF) to spend money in a short period of growing concern, said Officer Retirement Advisory Service (RAS) Kuala Lumpur EPF branch, Nornisah Mohd Yusof.
He said the average members who have reached retirement age spend their savings in the next three to five years while the average life expectancy of Malaysians has increased of 75 years.
"More worrying when there are cases where retirees spend 70 percent of their savings and not until 30 days have spent the money, this situation should not have happened," he told Bernama.
Thus, Nornisah advised the public, especially retiring so clever in managing the financial planning and spending wisely to guarantee the sustainability of life in the old days.
"For members who need information or help advice can refer to RAS officer qualified in the nearest EPF branch.
"Here we will give advice and insights to help members make the best decisions before making a withdrawal," he said.
He said that RAS can also give guidance to the management of retirement savings that can generate a monthly income, durable, and able to finance the cost of living during retirement.
Nornisah explain contributors must have a basic savings, namely a total savings in Account 1 is defined by age to allow members to have at least RM228,000 at the age of 55 years to finance basic retirement needs.
This amount is taken in accordance with the minimum pension for the public sector, ie RM950 per month for a period of 20 years from age 55 to 75 years, equivalent to an average life expectancy of Malaysians, namely 75 years.
He said that as of last year, as many as 65 per cent of EPF members aged 54 years and under have savings of RM50,000 and below.
He added that there are four phases of the appropriate age to make financial planning to ensure a comfortable retirement or insufficient.
"The first phase in the 20s, are strongly encouraged to deposit money at this age and should have kept the practice whereby members can make the distribution of savings on some important parts such as property, education, and retirement.
"Rating 30s is a good time to reassess the work done either in kind or not, people in this age should have been able to make an advance payment for home purchase.
"This is the best time to plan for retirement if they do not do so at the age of 20," he said.
Nornisah said phase-40s, who have a family member should be more focus on making children's education savings and more serious in retirement savings and the need to assess all credit management so as not to be burdened with debt.
He said in the last phase of the 50s, members are encouraged to continue safe and not take risks that are too high to develop wealth.