Can You Retire on Your Employee Provident Fund Savings

I came across this article in The Star on May 27th, 2007 and I want to highlight this “can you retire” on your Employee Provident Fund savings alone, with my personal opinion.

“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 – not enough to see them through 20 years past retirement.”

Source: http://thestar.com.my/news/story.asp?file=/2007/5/27/nation/17857389&sec=nation

Since I have stopped working about four years ago, I went to search for alternatives to make a living to working from home. I have my family support on this to spend more time with my youngest child. As a female, working from a home environment is not easy but not impossible.

I still have to struggle between making time to send my youngest son to school, pick him up, sends him for tuition and outdoor activities like swimming and chess club. I can only do this car ferrying when I do not work full-time.

What I got out of these actions are I get to spend more quality time with my children, talk to them and they understand me better. I share my expectations and sorrows and disappointments as well as joy with them. They do the same with me.

I have started teaching my son about the Importance of Money, How to handle it and How to Make it. I tell them that money is important and needed to enjoy quality lifestyle but one can also live with very little means.

I take my children out of Malaysia to lesser developed countries in Asia to show the what I meant that many people can live with little money. I think this is an important lesson for them to learn the Art of Handling Money in future, and not live on too many credit cards.