Retirees fear golden years may be bleak

PETALING JAYA: Retirees are feeling the pinch of the rising cost of living, with some worrying that they may not have enough to spend in their golden years.

While some have set aside money for retirement, they are doubtful whether they can stretch their ringgit against the backdrop of a sluggish economy and inflation which have pushed up the prices of goods.

Their concerns seem to mirror that of working Malaysians in a recent HSBC survey which showed that 88% of respondents were worried over whether they had enough money to spend during their retirement.

It was also reported that only 8.9% of Employees Provident Fund (EPF) contributors could live above the poverty line when they turn 55 this year as this group had more than RM201,000 in their EPF savings, while the remaining 91.1% had less than that amount.

Retired businessman John Chan, 62, is considering taking up a job to supplement his savings.

“When I retired five years ago, I believed I had sufficient funds to last me for the next 20 years. But now, I’m having second thoughts.

“At the rate inflation is catching up, I think whatever savings I have now will only last me about 10 years,” said the father of three.

Chan hoped the Government would address the situation by getting the EPF to give bonuses to retiring contributors to boost their savings.

Systems analyst R. Suppiah said he had no plans to retire yet even though he turned 61 this year.

“As long as I am strong and healthy and my contract is renewable, I don’t want to retire. I do not want to touch my savings for as long as I can. It would be my last resort,” said Suppiah whose daughter is in college.

There are some who feel they are able to weather the economic situation, like retiree Noorhaidah Mohd Ibrahim, 61, who started investing in funds when she was younger.

The former human resource manager said her family generally led a thrifty lifestyle.

“We choose not to go on overseas holidays although we can afford to,” she said.