WHEN it comes to retirement plans, you should always plan for yourself and not for others, advised Private Pension Administration Malaysia (PPA) chief executive officer Husaini Hussin.
He said one should set aside savings that will last for at least 20 years upon retirement.
“You ‘top up’ to care for your future; it is not about the money you cannot spend today, it is about the extra money you can spend when you retire,” he noted.
Husaini was one of the speakers at the “Top Up Your Life” retirement-planning talk, along with Kenanga Investors Bhd learning and development vice-president Alan Chew.
Similarly, Chew advised the participants to take care of their health as many people spend their savings on medical bills.
“People work hard, but many neglect to take care of their health, and in turn, a lot of money is spent on regaining their wellness.
“The idea is that we want to retire healthily,” he said.
In the event of sudden incidents that channel savings elsewhere, Chew said it was always good to have an alternative pool of savings such as private retirement schemes (PRS).
Nur Hashimah Kamal, 24, felt it was necessary to get a head start for future financial security.
“I always think about my future as times are getting harder and cost of living is rising.
“I believe I am at the right age to start,” said the accountant.
She had invested in a different voluntary savings scheme prior to learning more about PRS.
Upon gathering further insights at the talk, Nur Hashimah signed on with Kenanga Investors.
Husaini expressed delight that some young people in the workforce are getting concerned about their retirement.
“What we see now is that many millennials only live for the moment.
“They should start now so that they have more time; even if they start with a small fund now, they will get more returns for their future.”
As the central administrator to PRS, Husaini said PPA wants to cultivate regular saving habits among the masses.
“The idea is to start the saving habit somewhere. Even if you start small, the amount can be revised as and when you get a higher income.”
PPA has also launched a nomination process that will enable PRS contributors to name up to six nominees to facilitate and expedite withdrawal of their PRS balance in the event of their demise.
“The nomination will supersede all wills, and can be a gift for your loved ones when you are no longer around,” said Husaini.
Twenty-eight-year-old Ashley Lee came all the way from Alor Setar, Kedah to Menara Star, Petaling Jaya, to learn more about PPA.
“It was worth the travel to gain product knowledge,” said Lee, who is also in the unit trust business.
Despite the nature of her career, Lee admitted that she had yet to look into PRS and the talk opened up possibilities.
“Now that PPA has introduced the nomination process, I have more confidence in the schemes. But I am also exploring other schemes provided by private retirement scheme providers, including the one I am working for.
“It was good to weigh the differences and options before making a decision,” she noted.
Meanwhile, Husaini said those aged 50 and above can also take up PRS, but he advised them to seek consultants to find out about the available options.
“They can always look into conservative funds which have lower component of equity so that the risks are not so volatile.
“Even if you are retired, you can still invest with PRS, but make sure you get the right advice, look at the risk appetite as well as savings objective,” he added.
The “Top up your life” talk was organised by The Star and presented by PPA and Kenanga Investors Bhd.
About 380 individuals registered for the event.
All participants received a one-year subscription of The Star ePaper worth RM180 each while five lucky participants received a RM500 PRS contribution.