NEWS: How to retire gracefully and wealthily

The Edge TV

Speakers at The Edge Retirement Reimagined Forum 2023 spoke to a packed crowd about the challenges for those facing retirement, and advice for living your best life during your golden years.

Transcript

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01:05 I reckon few will disagree that retirement planning has gone

01:13 beyond putting money aside by keeping it in the bank to earn interest.

01:20 We were in the low interest rate environment that lasted more than 10 years since 2009.

01:27 Fortunately, inflation then was not as bad as today.

01:32 However, according to the policy makers around the world,

01:37 interest rate will stay higher for longer moving forward.

01:43 As they mean inflation is the priority of most of the government around the world.

01:50 [MUSIC]

01:53 >> Today, life expectancy is 20 years more than when ETF was born in 1951.

02:01 And you've looked that we have done well as a society in the world

02:06 by helping to get people's living conditions to be better,

02:11 so that they can live to a longer part of their life.

02:15 The key question actually goes back to the question that we asked earlier today,

02:20 which is, do you have enough?

02:22 Dependency on ETF is very high, yeah?

02:24 And there are no other sources of funds available.

02:27 And fundamentally, also Malaysians love that.

02:31 We are highly geared as a society.

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02:36 So why savings for retirement is low?

02:40 Our proposition is in the country today,

02:44 low wage structure is probably the biggest issue that exists.

02:49 Today, from the data that we actually have,

02:52 41% of my membership today who are active,

02:55 actually earn less than 2,000 ringgit a month.

02:59 This is inadequate for anybody to be able to grow it to a certain level.

03:06 So the problem is not the contribution rate itself.

03:10 The problem is the base wage level that exists in Malaysia.

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03:17 In my 21 years of experience in this field,

03:20 I want to share the common issues Malaysian face today

03:26 that highlight the needs for estate planning.

03:30 We all know two things for sure in life, right?

03:34 Death and of course taxes.

03:37 We can avoid them, so we need to prepare for them.

03:42 I want to talk about something that a lot of financial advisors don't talk about.

03:48 I don't think so they will like me now, yeah?

03:50 Estate planning is a crucial part of your retirement strategy.

03:55 Unlike visible returns or wealth accumulation,

04:00 you could see the fruitation now, but the impact of estate planning isn't immediately apparent.

04:09 While having enough funds in your retirement is vital,

04:15 I stress that estate planning is equally significant in shaping your retirement.

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04:26 When we look into the preparation, we must be mentally prepared to switch to a new chapter of life.

04:33 So if we come into a new chapter of life unprepared, then we have a lot of issues and challenges.

04:39 But if you're prepared, then I'm not talking about financial only,

04:44 but acceptance, you know, retirement can be a blessing.

04:49 Don't cling to the mindset and sense of superiority from your past job.

04:55 For example, DG of Health and etc.

04:58 [LAUGHTER]

05:00 It's only a job, it's not a lifetime that you're going to hold on to the job.

05:05 So let go of your ego, that's the most important.

05:09 Massage your ego, accept the retirement and move on.

05:14 You might lose your sense of ease if you cannot let go.

05:18 I think this is a preparation.

05:20 Anyone who wants to retire, make sure you are prepared mentally.

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