MANY of us dream of having more than RM700,000 in our EPF savings by the time we retire.
But even when one retires, it’s important to practise money management skills as it is possible to exhaust one’s savings within a couple of years of retirement.
A retiree recently shared how he had depleted his RM750,000 Employees Provident Fund (EPF) savings within seven years.
According to Sinar Daily, the man had received a sum of RM750,000, comprising RM500,000 from Account 1 and RM250,000 from Account 2.
A good chunk of the retirement money went to renovating the man’s house which was reported to cost around RM200,000.
This included building a concrete fence along with adding a kitchen and a garage.
The 64-year-old father of five explained that the house renovation was to ensure a comfortable home for his married children when they return home for festive seasons.
READ MORE: One in four Malaysians exhaust EPF savings within five years of withdrawal age
He then forked another RM70,000 in 2016 and 2018 for his two daughters’ wedding ceremonies.
“While the remaining amount was used for daily expenses such as food, utilities, internet, and car fuel throughout my retirement.”
The former private sector employee also shared that the high cost of living and expensive price of goods attributed to the rapid depletion of his retirement funds.
“Every time I go out to buy groceries, I need at least RM100 or more,” the man was quoted as saying.
He then urged retirees to practise the habit of being thrifty so that their EPF savings will be able to support their lives after retirement.
He added that he feels fortunate because his 62-year-old wife, a retired government employee, receives a pension that helps support their expenses in their old age.
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