Your Retirement Should Be Your Reward

We work hard to provide for ourselves and our families as well as to sustain our lifestyles. However, during the course of your career – while pursuing professional goals in addition to everything else – how often do you stop to think about life after work?

If you have not, you are not alone. According to reports, most Malaysians are not prepared for retirement. One possible explanation for this is the lack of financial literacy among Malaysians, which stands at 36%, according to a World Bank study. Furthermore, because retirement is often perceived as a distant prospect, we put off planning for it, assuming it can be taken care of at a later date or at a later part of our career.

Whether it is to see the world with family, hiking with fellow outdoor enthusiasts or volunteering your time at a charitable organization, retirement should be a period when you finally get to enjoy everything you work for. And, when that time comes, your retirement savings will be expected to provide you with sufficient income to enjoy all the things that you temporarily set aside all those years ago.

How much do I need to save?

The World Bank recommends having at least two-thirds of our last drawn salary as the amount needed to maintain our standard of living after retirement. PPA’s research suggests that the two-third benchmark is achievable if we set aside one-third of our income. 

For most of us, our mandatory contributions already add up to 23%. Thus, you need to just save an additional 10% of your monthly salary in Private Retirement Schemes (PRS), a voluntary long-term savings and investment scheme designed to help you save more for your retirement.

After working hard for three to four decades, your retirement should be your reward.

Get to enjoy everything you work for. Save in PRS.

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