Grow your retirement funds

In approximately 15 years, our country is poised to turn into an aged nation, and yet almost 70% of existing EPF (Employee Provident Fund) members are not ready for retirement. According to government sources, a minimum savings of RM820 per month for 20 years is required for retirees. This would come up to RM196,800 – an amount that only 33% of existing EPF members have! These are bone chilling statistics indeed, considering the fact that with inflation factored in, RM820 per month over 20 years may not go far in ensuring a comfortable lifestyle post-retirement. Retirees may need to dig deep and look into how they can cut corners.

What about your EPF balance? Is it at a satisfactory, healthy level?

If it isn’t, there are available options for you to help grow it while you still have time on your side.

Besides depending on the EPF to invest the funds, you can also take things into your own hands. Some of the steps that can be considered are:

  • Start saving extra on your own, if you haven’t started yet or
  • Take up extra jobs on the side or
  • Delay your retirement, continue working after the age of 60 or
  • Invest for more returns

Depending on the time you have left before you reach 60, you will have to decide if you want to adopt a passive or aggressive approach. Saving steadily may work well for someone young while investing for returns may be what a more matured person requires.

Given the variety of financial instruments that are available whether locally on Bursa Malaysia or in foreign markets, investors have plenty of choices. In terms of the type of stocks, there are different types of categories that will interest investors. Blue chip premium stocks are known to produce a steady stream of dividends annually. Coupled with promising capital gains over time, these stocks may just interest risk-averse investors as they look to build up a nest egg.

Through RHB’s online trading portals, we offer a total of SIX markets for stocks: Bursa Malaysia, SGX, HKEx, NASDAQ, NYSE and AMEX. These are in addition to other financial instruments that you can trade through RHB, for example futures contracts, warrants and more.

Explore your options today and start building up your nest egg for a comfortable lifestyle post-retirement. If you require professional assistance on investing, do talk to our Dealer’s Representative/Remisier today. Alternatively, contact our Call Centre.

 

Related Articles:

http://knowledge.rhbinvest.com/retirement-are-you-ready-for-it/

http://knowledge.rhbinvest.com/dividend-yield-a-sound-indicator-to-select-stocks-for-investment/

Sources:

http://www.thestar.com.my/Business/Business-News/2015/11/21/Plan-early-for-retirement/?style=biz accessed 25 November 2015

http://www.thestar.com.my/News/Nation/2015/11/21/67-of-EPF-members-not-ready-for-old-age/ accessed 25 November 2015