Can you retire?


  • People are living longer – life expectancy for women is 76 years and men 72
  • They are marrying and having children later. At retirement age, the children are still in school or university
  • 70% of retirees use up all their EPF money within three years after retiring.

Living costs and inflation

  • Inflation rate is 6% in urban areas
  • 3 meals a day at RM20 now may cost RM64 in 20 years
  • RM500,000 in your EPF or bank account at retirement may have the purchasing power of RM145,053 in 20 years
  • Medical inflation is 15% each year

Case Study

If a family in Kuala Lumpur with two kids and two cars needs RM5,000 today, at retirement, expenses should go down to RM3,500 or 70% of one’s current lifestyle. One would need RM747,000 if one were to live for 25years, but the average contributor has only RM106,000 in his EPF account when he retires.

Most Malaysians do not have financial security

ONLY 5% of Malaysians are prepared for retirement. Despite a growing awareness for the need to prepare for one’s retirement, many do not translate their plans into action.

Those in their 20s think they are too young to think about retirement, while those in their 30s and 40s tend to believe they are doing enough because they have their EPF savings. By the time they are 55, it is just too late.

The sad truth is that at 55, most people cannot retire with financial security.

Based on EPF’s 2005 annual report, about 90% of EPF contributors have less than RM100,000 in their accounts ¨C not enough to see them through 20 years past retirement.

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