Youths have started to plan and save money for their retirement. — Filepic
To most young people in their 20s and 30s, the idea of retirement may seem like a distant prospect, one that they put off thinking about until later in life.
However, with the rising cost of living, some youths are now giving a lot of thought to their retirement and are wisely making plans for their future.
In line with this, StarMetro spoke to youths aged 35 and below on their plans before they stop working.
Most of them are hoping to make the best choices for retirement based on the experiences of their senior family members.
Some are making preparations by educating themselves on the topic and becoming more financially literate.
The main considerations for these youths are costs, convenience and maintaining an active lifestyle.
A simple life
Penang-born Muhammad Shahrizul Muiz Mohamed Nasir, 32, lives with his wife and his seven-year-old nephew at an apartment he bought in Penang island.
Shahrizal Mizan (in black jacket) wants a better retirement life compared to his grandparents who have it tough living in a low-cost flat.
For him, the apartment will be his permanent home, even after retirement as it is convenient and nearby public transport.
The couple is expecting their first child in the next few weeks.
Muhammad Shahrizul, who has a Masters in Business Administration (MBA), is the special officer to Penang social development, welfare and non-Islamic religious affairs committee chairman Lim Siew Khim.
“I want to retire in Penang as I believe by 2028, George Town will become a senior-friendly city.
“I want to retire in a place with good public transportation, grow old in my own home and have enough money for a simple lifestyle.”
He does not fancy living in retirement homes as he believes it will be too expensive.
Final year law student Shahrizal Mizan Abdul Khamis, 24, wants to retire in a better financial position than his grandparents, and with more assets in hand.
Che wants a quiet retired life in his hometown of Ipoh.
His outlook is shaped by his grandparents’s tough life renting a low-cost flat in Petaling Jaya, where the amenities are poor, making it difficult to even transport them down to the ambulance when needed.
“I grew up poor and my parents did not have permanent home either. I want to change this and I think I can.
“I will work hard and buy my own house and have enough money to retire to a senior home, if necessary,” he said.
Klang Valley is not the place to retire for environment digital consultant Che Yik Wai, 33.
He is planning to retire in his hometown of Ipoh, Perak, and enjoy a good retirement life similar to his parents.
“Traffic congestion in the Klang Valley takes up a lot of my time commuting to work and back. The parking rates are very high.
“I would prefer to retire in Ipoh as it has more greenery and I see more outdoor activities there,” said Che, who also plans to get married and start a family.
Nurwahida says students must learn to make good investment decisions, by setting aside RM100 to start.
During the Covid-19 pandemic, Che witnessed his parents, who had been married for over 40 years, as being a great support system to each other in their senior years.
“I see my parents spending a lot of time together doing various activities they like in Ipoh. I want to retire like them,” he said.
Saving for retirement
Che has also started investing in various funds for his later days, adding that he does not mind living in elderly care homes if it comes to that.
“In addition to EPF (Employees Provident Fund), I have started saving in mutual funds in preparation for my retirement years.”
Business consultant Justin Yeow, 24, envisions retiring in a senior community that has fun activities.
To be able to afford such a life, he has planned to have adequate savings and investments as these facilities are expensive.
“I have to think like a global citizen and seize the opportunity throughout my working years,” said Yeow, who sees himself holding several jobs including earning in foreign currencies.
“I have also diversified my income and investments, including in the stock market,” said Yeow, who has a degree in economics and finance.
Yeow said he does plan to have family but only when he has advanced in his career.
Muhammad Shahrizul (centre) plans to retire in Penang as he believes George Town will be senior-friendly by 2028.
“I want to ensure that while I save up for my retirement, the needs of my family are also taken care of. Hence I can only plan on having a family later in life.”
The pandemic was a wake up call for Davina Devarajan, 29, who has started planning for her retirement and to ensure her mother is taken care of.
The policy consultant and her sibling recently bought an apartment for their single mother so she would have a roof over her head.
“During the pandemic, news about people losing their jobs and withdrawing funds from their EPF savings got me thinking about our financial needs in the future,” said Davina.
“Since then, I have been reading about financial matters.”
She feels less encouraged to have children of her own as it would be costly and deplete her savings for her own retirement.
Individual plans
A nomadic life seems to appeal to Nurul Aqilah Azahari, 27, and her husband at the moment, and they plan to later retire in the suburbs.
“We hope our children will live independently while we travel.
Nurul Aqilah (right) and husband Ahmad Naufal Jailani plan to retire alongside close friends.
“When we are bored of living as nomads, we want to be able to live in the suburbs with our friends nearby,” said Nurul Aqilah, imagining herself opening her front door in the morning and being greeted by her friends.
Meanwhile, a 35-year-old content writer, who declined to be named, has no plans to have children due to commitments to take care of a disabled brother and retired father who has no savings.
“Upon retirement, my father sold our house when he ran out of money.
“Currently my husband and I live with my sister, my father and brother under one roof in Petaling Jaya to save on rental costs,” she said.
She added that the responsibility of taking care of her father and brother had fallen on her, prompting her to plan for her retirement early.
“I am saving up as much as I can for my retirement.
“I plan to put myself in a senior home if my husband is no longer around since I will not have children to look after me.
Davina is working out a retirement plan for herself with provisions for her mother.
“I also eat healthy and I invest in my fitness plans,” she said.
Lessons on investment
Retirement may not be on the minds of most youths but the idea must be induced in them, said Heriot-Watt University Malaysia’s Edinburgh Business School assistant prof Dr Nurwahida Mohd Yaakub.
Nurwahida, who teaches personal finance to undergraduates, said the topic of retirement must be introduced to undergraduates.
“As most students graduate in their 20s, it is the best time for them to have knowledge on how to plan for retirement,” she said.
She added that students must learn to make good investment decisions, perhaps by just setting aside RM100 when they start earning.
Yeow (right) pictured with his sister and grandmother, wants to retire to a senior community that has fun activities.
“This will help them make better financial decisions as they age and be able to fund their retirement plan,” said Nurwahida, adding that lessons on retirement were part of the syllabus.
During initial lessons, she said students were intimidated by the topic of retirement.
“We explore how much savings is required based on some of the retirement calculators available online,” she said.
She added that there were many resources online and reliable licensed financial planners that youths could consult.
