Those who intend to retire in the next 20 to 30 years will need at least RM900,000 to RM1 million in savings to retire in comfort.
According to a message from Employees Provident Fund Board (KWSP) chief strategist Nohithan Husain, members will need RM900,000 to RM1 million to retire in the next 20 to 30 years, after taking into account factors such as inflation and medical costs.
As for those who plan to retire in the next few years, they will need about RM600,000 to retire with dignity in Kuala Lumpur, while people outside the Klang Valley may need less savings to retire. Currently, only about 4% of Malaysians can afford to retire.
RM600,000 can also only cover the cost of general outpatient medical needs and visits to general practitioners, excluding any major medical needs.
Currently about 56% of Malaysian EPF members aged 54 years old have less than RM50,000 in savings. With a person living on RM1,000 per month, he can only sustain his life for more than 4 years.
In addition, 52% of the members have less than RM10,000 and 27% have even less than RM1,000.
