Monday, July 16, 2007

Shiny or Shabby Golden Years?

This time on The Sunday Star's (15 July 2007) Focus on Financial Planning, the case used here is about a middle-aged couple ,Daniel, 54 and Debra, 51, whom did not have proper financial planning since young. This article paints a rather bleak out come even if they started a 'crash course' in planning for their retirement. Just imagine this; to cover up for their shortfalls, they have to invest RM 9,500 per month in order to have sufficient funds for their retirement and Daniel would have to delay his retirement till the age of 64 (I wonder which company will be so kind to continue his employment. After all, they can always hire a younger individual with lesser salary and perks and he/she can still do the same job...) and now they would have to really save aggressively (compared to what they would need to save 10 or 20 years ago).

However, like the article indicates, the purpose of painting this bleak scenario is not to depress the readers but to highlight the importance of having proper financial planning since young to avoid such issues in the future. It takes a little sacrifice today to have a comfortable living in the future or do we wait till the very last minute and lament at how stupid we were for not saving enough? Now, that's food for thought...


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