KUALA LUMPUR, Nov 13 — Financial planner Dr Niki Shuhada Shukor said the level of awareness among Malaysians on retirement financial planning is still very low and worrying and this is due to the lack of public awareness.
“They feel it is not important to start saving today, that it can be done later but when they finally realise it, it’s probably too late, and we do need the money for our retirement, as our source of income will be shrinking or we become less healthy that it will require us to have a strong financial back up.
“A survey carried out by the Employees Provident Fund (EPF) for this year showed that household savings in Kuala Lumpur and other big cities as well as in the rural areas, found that over 90 per cent respondents are not having enough saving to retire comfortably,” she said to Bernama after appearing as a guest on Nine11, a talk show produced by Bernama News Channel here today.
Niki Shuhada said the community should have the awareness of having a holistic financial planning apart from being able to manage the expenses.
There are two expenses today, namely the monthly commitment expenses such as cars, homes and meals and expenses for dependents including parents, wives and children.
“When we retire, we need financial resources to sustain us. Proper financial planning will ensure that future commitments is met. The easiest way is to save 10 per cent of our monthly income for retirement.”
With over 20 years of experiences in finance, she said among the main reasons why people failed to make enough saving for retirement was due to the wrong choice of lifestyle.
“They don’t make any saving due to their urgent monthly commitment, perhaps they have expensive car, house as well as luxurious lifestyle.
“Mobile phones are constantly evolving and taste for expensive meals will also use up the money without much thought about saving for the future.”
Niki Shuhada also said apart from having lifestyle beyond their means, unsettled debts could also cause people to delay from making efforts to prepare for retirement. — Bernama