18/03/2025

TUESDAY | MAR 18, 2025

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Are Malaysians prepared for retirement?

The rule of 375 simplifies this process: multiply your desired monthly retirement income by 375 to estimate the total nest-egg required for a 30-year retirement. For example, if you aim for RM3,500 monthly, you will need RM1,312,500. This figure provides a clear target and underscores the importance of proactive planning. Modern tools and professional advice can make retirement planning more accessible: 0 Retirement calculators: Tools provided by EPF and financial institutions help estimate savings requirements based on factors like inflation and expected returns. 0 Professional guidance: Financial advisers offer tailored plans, including investment strategies and EPF withdrawal methods, ensuring your retirement goals align with your unique circumstances. Combining these resources will enable individuals to create a robust financial roadmap. Securing your retirement dreams requires aligning your current financial habits with long-term goals. Begin by assessing your savings, reviewing your investments and ensuring your contributions match your retirement targets. Regularly revisit and refine your financial plan to account for inflation, market changes and evolving needs. Retirement is more than just an abstract dream; it is a reality that requires careful planning. By embracing financial awareness, leveraging tools and professional advice, and actively preparing for the future, you can shape a retirement that fulfils your aspirations. Every decision you make today will bring you closer to financial freedom and the good life you deserve. Do not let retirement catch you off guard; start planning now and ensure your golden years are truly golden. AssocProf Dr Chong Wei Ying is a member of the Active Ageing Impact Lab at Taylor’s University. She is also an academician at the School of Marketing and Management at Taylor’s Business School, Faculty of Business and Law. Comments: letters@thesundaily.com weeks. His patience and dedication paid off in ways he could never have imagined. Hosseini’s journey reminds us that delayed gratification is not just about waiting; it is about working towards something meaningful. It is about planting seeds and trusting that, with time and care, they will grow into something extraordinary. How can we apply this principle to our lives? Start by identifying one area where you can practise patience this week. Maybe it is resisting the urge to interrupt during a conversation and giving yourself time to think before responding. Or perhaps it is setting aside a small amount of money each day for a future goal, like a dream vacation or a new skill you want to learn. Track your progress. Notice how it feels to resist the immediate urge and focus on the bigger picture. You may find that the act of waiting itself becomes rewarding, a reminder of your ability to choose long-term fulfilment over short-term pleasure. So, next time you are tempted to take the easy way out, remember the marshmallow experiment. Remember Sun Tzu’s wise warrior and ask yourself: “What is the greater reward I am working towards again?” Because in the end, life isn’t, and will never be, about how quickly we can grab the marshmallow; it is about how we choose to wait for the second one. Always. Dr Nahrizul Adib Kadri is a professor of biomedical engineering and the principal of Ibnu Sina Residential College, Universiti Malaya. Comments: letters@thesundaily.com

R ETIREMENT is not just a phase of life; it is often seen as the pinnacle of a good life – a reward for years of hard work. Yet, for many Malaysians, retirement remains a puzzling and uncertain prospect. In a society driven by the pursuit of “more” – more gadgets, more vacations, more experiences – preparing for the future often takes a backseat. But what if we shifted our focus from merely living for today to also planning for tomorrow? For most Malaysians, the Employees Provident Fund (EPF) serves as the primary savings mechanism, yet it often falls short. As of October 2024, only around 36% of active formal EPF members met the existing basic savings level according to age, anchored on RM240,000 at age 55. This is far below the updated basic savings benchmark of RM290,000, which is deemed necessary to cover 20 years of essential retirement expenses. Further data reveals significant disparities across demographics. Younger workers have lower savings as compared to the elderly. Low-income earners and informal sector workers face inconsistent contributions while women save less due to lower earnings, career breaks and longer life expectancy. Rising healthcare costs, which increase by 10% to 15% annually, and longer life spans (averaging 76 years) further exacerbate these challenges. The lack of preparation is evident all around us. Stories of retirees struggling to make ends meet, facing financial insecurity and living with regret over missed opportunities are far too common. While these situations may not always be catastrophic, they are undeniably disheartening. Preparing for a secure retirement requires a conscious effort to understand and manage one’s finances, emphasising long-term planning over short term gratification. COMMENT By Assoc Prof Dr Chong Wei Ying IMAGINE a child sitting at a table, staring at a single marshmallow. A researcher explains the rules: “You can eat this now or if you wait 15 minutes, you will get two marshmallows instead.” The child fidgets, looks away and even tries to distract themselves but the temptation is real. Will they give in to the immediate pleasure or hold out for the greater reward? This, of course, is the famous marshmallow experiment, published in 1970 by Stanford University psychologist Walter Mischel. The study was not just about sweets; it was about self-control. Years later, in separate analyses done in 1989, 1990, 2000 and 2013, researchers found that the children who waited for the second marshmallow tended to have better life outcomes – higher academic achievement, healthier lifestyles and even greater career success. The lesson? Delayed gratification – the ability to resist immediate rewards for greater long term benefits – is a skill that pays dividends far beyond childhood. But let us be honest: in a world of instant noodles, next-day deliveries and endless scrolling, waiting feels almost unnatural and unacceptable. We are hardwired to seek quick fixes and instant results. Why save when you can spend? Why study when you can binge-watch? Why wait for a home-cooked meal when fast food is just a tap COMMENT By Dr Nahrizul Adib Kadri

A proactive approach to managing finances can enhance individuals’ confidence in making informed decisions about saving, investing and spending wisely. – SUNPIC

Unconscious attitude towards money Many Malaysians approach money passively. Most of them focus on day-to-day needs without considering long-term consequences. A simple exercise can reveal financial awareness: 0 Do you know how much money you currently have? 0 Can you recall your last significant withdrawal or transaction? 0 Do you know your total expenses for the past month? Most people struggle to answer these questions, highlighting a lack of financial literacy. Bridging this gap is crucial as it can mean the difference between financial security and hardship during retirement. A proactive approach to managing finances can enhance individuals’ confidence in making informed decisions about saving, investing and spending wisely.

Rule 375 Planning for a comfortable and fulfilling retirement requires a fundamental shift in how we perceive and manage money. It is not just about saving; it is about defining your financial goals and aligning them with the lifestyle you envision for your retirement years. Your financial requirements will largely depend on three key factors: 0 Lifestyle: Whether you prefer a modest lifestyle or plan to indulge in hobbies, travel or other luxuries, your chosen lifestyle will dictate how much you need to save. 0 Healthcare: Rising healthcare costs in Malaysia, driven by medical inflation, are a critical consideration for retirees as they often face increased medical needs. 0 Inflation: Rapid increases in prices will quickly erode the purchasing power of your savings.

Delayed gratification: The reward is worth the wait

away? The problem is not just about convenience; it is about mindset. As Sun Tzu wrote in The Art of War: “The wise

with the limbic system, which craves immediate rewards. It is a constant tug-of-war between what we want now and what we know is better for us in the long-run. However, here is the

warrior avoids the battle until the victory is certain.” In other words, success often comes not from rushing into action but from waiting for the right moment, preparing thoroughly and choosing the path that leads to lasting victory. Delayed gratification is not just about money or career success; it is about life itself. Think about the relationships we nurture – a strong friendship or marriage is not built in a day but through years of trust, understanding and multiple episodes of ups and-downs. The same goes for our

“Hosseini’s journey reminds us that delayed gratification is not just about waiting; it is about working towards something meaningful. It is about planting seeds and trusting that, with time and care, they will grow into something extraordinary.

good news: self-control is like a muscle. The more you exercise it, the stronger it becomes. Start small. Maybe it is resisting the urge to check your phone during dinner or saving a portion of your salary instead of splurging on the latest gadget. Each small act of patience strengthens your ability to delay gratification, making it easier to tackle bigger challenges. Consider the story of Khaled Hosseini, the author of the 2003 novel The Kite Runner, about growing up in Afghanistan. Before his debut novel became a global sensation, Hosseini was a practising doctor with no formal training in writing. He could have stayed in his comfort zone, focusing solely on his medical career but he did not. Instead, he

health. You may think calories are still calories, wherever it comes from – it can still come back. But you cannot undo years of unhealthy habits with a single workout or diet. Real change takes time, effort and patience. So, why is it so hard to wait? The answer lies in our brains. The prefrontal cortex, responsible for decision-making and self-control, often battles

spent years crafting his story, pouring his heart into a tale that would eventually touch millions of readers worldwide. The book eventually stayed on the New York Times bestseller list for more than a hundred