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StarSpecial
RETIREMENT
PLANNING
T is anticipated that in 10 to 20
years, Malaysia will be facing a
retirement crisis; those who will
need retirement care and benefits
will grow in number and those
who are income earners will either
stagnate or shrink.
The Employees Provident Fund
(EPF) affirms that insufficient
retirement savings is to blame
Ballooning factors
Statistics
1. According to the Malaysian
National Statistics Departments
Population Projections 2010-2040,
the majority of the population in the
year 2040 will be aged 36 and above
and the number of those aged 65 and
above is projected to increase to
more than three times that of the
2010 population. This will lead
Malaysia to become an ageing
population by 2021. Those of working
age will have to bear the weight of
the increasing older population.
Generation Y
Although retirement usually starts
at a later age, it is at the younger
years that planning and actual
efforts need to happen.
A Financial Finnese generational
research report conducted says the
tech-savvy millennials continue
to be stronger than the generation before them in many areas of
day-to-day money management.
(Financial Finesse is a financial literacy and wellness service
provider with more than 600
corporate clients).
A large contributing factor to
this is social media and the constant accessibility of the Internet.
But that same report explains that
millennials suffer from a relative
lack of investment knowledge
making long-term financial goals
my financial stability.
The Financial Finesse report
also says that the availability of
parental support from baby boomers (those aged between 45 and 65
now) has risen over the years. Baby
boomers probably had to be cautious with their financial planning
because of the lifestyles and economy of their time, and there was
probably not much support or easy
investment schemes back then.
These days, there are many
ways to invest. We are not only
responsible for the well-being of
those closest to us, we are also
responsible for our own well-being,
be it now or very much later.
It is only right to put some effort
into being financially stable, says
Savuriar.
It can be seen that globally, the
market and elders in the market
are motivating millenials to start
pondering on their retirement.
Double-edged sword
The old adage, prevention is
better than cure might sound
incredibly clichd.
However, when it comes to
retirement planning, you should
take the saying to heart especially
2 RETIREMENT PLANNING
Approaching 40
years of serving
the communitys
financial
needs, BSN
has pioneered
and forged the
mandate from
Bank Negara
Malaysia, which
is to cultivate
the lifestyle
of savings
and financial
inclusion among
Malaysians from
all walks of life.
the public to save while winning
great prizes and attractive rates or
returns.
In its Cuti-Cuti BSN campaign,
the bank is offering holiday
packages along with savings
packages, raising the earnings
savers could potentially earn from
their fixed or term deposits.
The holiday packages include
an all-expense paid trip for one
to Korea, including a tour of KBS
Studio as well as to Singapore,
including a trip to Universal
l Maturity of fixed
deposit There are a
number of options when the
deposit matures:
Reinvest for a shorter or
longer term
Add additional funds
Change interest payment
options
Withdraw all or part of
the balance unless BSN
is provided with other
maturity instructions,
your term deposit will
automatically rollover for the
same term at the applicable
interest rate offered on the
maturity date
l Simplified processes
Same day set up and the
account will begin to accrue
interest if applications and all
of the required supporting
documentation has been
correctly completed and
received by BSN any given
business day at the banks
nearest branches.
Eligible entry
1 entry
1 entry
1 entry
Example:
Customer A opens a new account with an initial deposit of RM200 with a new
BSN Visa Debit Card and receives one entry. At the end of the month, Customer
A has a deposit growth of RM100 in the account. Therefore, Customer A will
get two entries that month.
This campaign is open to all eligible new and existing BSN account holders for Savings Giro & Giro-i (which may consist of
individuals, joint account holders, sole proprietorships, partnerships, clubs and associations).
The eligibility criteria are as follows:
1. Individual account holder aged 13 years and above
2. For joint accounts, the eligible participants will be the
primary account holders. The entries for deposit growth
will be determined based on per customer (CIS) regardless
of the number of joint accounts within the bank
3. For sole proprietorships, partnerships, clubs and
associations accounts, the eligibility is subject to the
conditions that such account is managed by an individual
4. Malaysian citizen
5. Non-Malaysian with valid working permit and passport
Eligible entry
1 entry
1 entry
StarSpecial 3
4 RETIREMENT PLANNING
Planning ahead
A comprehensive plan that
places emphasis on health care
should be given precedence above
all else.
However, it may be difficult
for laymen to understand what
is particularly suitable for their
position.
For them to set their own
retirement goals and fall back on
EPF savings may not be enough.
This is where sound advice
can be very beneficial. Someone
who is conversant in financial
Much-needed advice
According to the EPFs Strategic
Operations Department, the idea
to establish RAS was partly driven
by the burgeoning need to tackle
financial illiteracy among the
younger generation of Malaysians.
It says that the issue of
inadequacy of retirement savings
should not be exclusive to those
who have retired or are nearing
retirement age, but it should be a
matter of concern to the younger
generation too.
More often than not, those
who have just entered the
working world will put retirement
planning on the backseat and only