Even with the introduction of EPF Account 3, many Malaysians have opted not to touch their savings.
After all, one does need that huge chunk of money for a peaceful retirement. But even when you retire, it’s not wise to burn through all that money.
Imlan Adabi recently took to his Facebook page to share a life lesson on how his retiree friend had managed to spend all of his Employees Provident Fund (EPF) savings in a short three years!
Yes, you read that right. 36 months.
“He worked for 30 years and finished all his EPF savings in just three years!” exclaimed Imlan before adding that his 70-year-old friend is now full of regrets and blames his grandkids for not giving him a monthly allowance.
“He doesn’t think that his grandkids also have their own commitments. After all, it is not their responsibility to take care of an elderly man who has spent extravagantly.”
Imlan goes on to explain that the man now has to work as he still has to pay his credit card loans and house loan.
“When he was speaking to me about his troubles, I kept quiet because I had advised him one too many times 25 years ago.”
He then urged readers to take caution of their spending habits.
“If you don’t need to take out money, don’t touch your EPF savings. Today, to live comfortably after retirement, one needs one million. The cost of living is rising, exacerbating poverty. One million is too little, especially as targeted subsidies are being planned.”
He also advised readers not to withdraw from their EPF Account 3, explaining that one doesn’t know what the future is like after retirement.
The Facebook post has since garnered over 400 comments, with many Facebook users agreeing with the advice.
“That’s very true. After retirement, we don’t have any other income, all we have are our EPF savings,” commented a user.
