New retirement age effective July next year

So, are you happy or not happy about retiring at age 60 instead of age 55?

Retirement age from 55 to 60 for the private sector will be implemented from July 1 next year.

The Star reported:

THE long-awaited implementation date for workers in the private sector to retire at 60 instead of 55 has been announced.

The Minimum Retirement Age Act 2012 will come into effect from July 1, 2013, and even the most reluctant of employers can only have a six-month moratorium up to Dec 31 next year to fully come on board.

More: Get maximum advantage from Minimum Retirement Age Act

Investing for Retirement

Inflation being what it is, the amount of money we are saving for retirement may not be sufficient to sustain our daily living when the time comes. Investing money wisely to protect the purchasing power is no longer an option but a necessity.

With bank rates at what they are, a diversified investment portfolio that includes gold investment and annuity rates fixed income accounts are two better options for retirement. From what I see, rates offered on annuity accounts are twice as good as rates offered by banks and there are many different types of income annuities, one to suit every need. Investing in gold is another sure way to combat the negative forces of inflation.

Retirement Age to be extended - proposal

What do you think about retiring at 62 instead of 55?

At the moment, the Employment Act 1955 does not state any age for retirement, while the only regulation on age is the withdrawal of the Employees Provident Fund (EPF), which is set at 55 under the EPF Act 1991.

The Government is looking at the possibility of officially setting the private sector's retirement age to 60. This move comes following the proposal to raise the civil service retirement age to 60 from 58 last October.

Job seekers and employees believe that pushing up the retirement age for the private sector will necessarily mean fewer employment or promotion opportunities which experts say is more fallacy than truth.

Government would need to facilitate a conducive environment for firms to invest and expand so that job opportunities open up for talented and experienced employees to have the chance to move up the corporate ladder as business expands.

The Star said, according to reports, the Private Sector Retirement Age Bill will be tabled in parliament soon, with provisos to allow those who reach 60 to renew up to 64 and may contain a clause allowing people to retire earlier.

Here's something interesting..

Deloitte Consulting Malaysia executive director Andrew Lee says a recent study in Britain shows that a one-year extension of working life implemented increases real gross domestic product by around 1% after about six years following its implementation.
Dr Ong says the ‘fallacy of labour scarcity’ is not true.

“On the upside, two benefits are immediately clear. Firstly, because people work longer, raising the retirement age increases revenues coming into the social security system. Secondly, because people retire later, the payout to retirees falls,” he says. (Source: The Star)

Is savings enough for retirement?

Good morning! I'm reading The Star online and came across this interesting article on savings for retirement. Below is an index showing the awareness level of retirement income. How do you think Malaysians compare to people of other countries?

The article is worth a read.

Have a great Sunday. Over here in Kuala Lumpur, the sun's rays are still somewhat filtered by the haze but I see blue skies and beautiful clumps of white clouds. Looks like today's going to be a wonderful day.


Image source: The Star

Include Gold in your Retirement Portfolio to Preserve Your Wealth

Precious metals such as gold and silver have been in demand for thousands of years. Today, gold and gold coins are worth many times over in value. People buy gold coins more as an investment these days, though they are also collected for their aesthetic value.

We all know that an investment in purely equities is risky as the share market is volatile. Having an investment portfolio that includes IRA gold could improve investment performance by either increasing returns without increasing risk, or by reducing risk without adversely affecting returns. Bottomline, gold preserves wealth and purchasing power.


Don't know where to buy gold or need investment advice?

Regal Assets has over 50 years of combined experience in the precious metals investment industry and they have an extensive inventory of gold coins and gold bullion including:

St Gaudens gold coin, Liberty Heads, Indian Heads, Austrian Philharmonics, Canadian Maple Leafs, American Buffalos, American Eagles, Chinese Pandas, and South African Kruggerands.

Money Rules of Thumb from A Financial Expert

Recently, the Malaysian government made a change allowing members to withdraw money from the Employee Provident Fund (EPF) to pay housing loans monthly. Many house-buyers rejoice at the new amendment.

The EPF, something like a 401(k) in the US and some other courntries, makes it compulsory for employees to contribute 11% of his base rate into this fund while his employer contributes 12%. The entire contribution can only be withdrawn upon retirement at the age of 55 or 30% of it upon reaching 50 years of age. This too has changed slightly recently.

Allowing members to withdraw their contribution in the EPF to pay for their housing loan monthly may be welcome by some but not by others. The latter fear that there might not be enough for retirement later on if they choose to withdraw to pay off their home loan considering the rising inflation rate and the higher cost of living.

All of us have our ways of managing our finances, some with some degree of success, others not so. It's always good to maintain an open mind for new ideas when they do come along. Here are some money rules of thumb from a financial expert. Hope you'll find them useful.


1. Retirement, Part I: "Save 10% for basics, 15% for comfort, 20% to escape."

2. Retirement, Part II: "Retirement money is for retirement; until then, keep your mitts off it."

3. Student loans: "Your total borrowing shouldn't exceed what you expect to make your first year out of school."

4. College savings: "Saving for retirement is more important, but try to put at least $25 a month per kid in a college savings plan."

5. Cars, Part I: "Buy used and drive it for at least 10 years."

6. Cars, Part II: "If you must borrow to buy a car, follow the 20/4/10 rule."

7. Cars, Part III: "To compute and compare the real monthly cost to buy, insure and operate a car, double the price tag and divide by 60."

8. Credit cards: "If you carry a balance, look for the lowest rate. If you don't, get rewards at least equal to 1.5% of what you spend."

9. Debt repayment: "Pay off maxed-out cards first."

10. Financial flexibility: "You need to be able to get your hands on cash or credit equal to three months' worth of expenses."

11. Insurance: "Cover yourself for catastrophic expenses, not the stuff you can cover out of pocket."

12. Life insurance: "Those who need it typically need five to 10 times their income."

13. Mortgages, Part I. "If you can't afford to buy the house using a 30-year fixed-rate mortgage, you can't afford the house."

14. Mortgages, Part II. "Fix the rate for at least as long as you plan to be in the home."

15. Mortgages, Part III: "You almost certainly have better things to do with your money than prepay a low-rate, deductible mortgage."

16. Priorities: "Retirement, then credit cards, then emergency fund."

For details, read 16 favorite money rules of thumb by Liz Pulliam Weston

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