AFTER RETIREMENT, EVERY RINGGIT COUNTS

How to stretch your ringgit? Look for special offers and sales. Don’t be embarrassed to ask about special concessions for senior citizens. - LILY FU

 It costs RM1.60 for an apple? Just a few months ago, it was only 90sen at my neighbourhood supermarket! Looks like retirees can’t afford to have an apple a day to keep the doctor away!

While some retirees won’t be losing sleep over rising prices of practically everything – from food and fuel to utilities and services, the majority of retirees will need to r-think their spending habits.

They will have to look at ways to stretch their retirement savings.

According to EPF figures, only 33% of active members have basic savings of RM240,000 as of last year. What about the other 67%? What about those who are not EPF contributors, who have barely any savings?

We can’t expect our adult children to support us indefinitely. They have their own financial commitments to deal with. The best way to help them is to be able to support ourselves.

So the daily struggle continues. The fortunate ones are those who have planned well ahead for their retirement, have money to invest in shares or have generous children to fall back on.

For the rest of us, it’s a case of no money coming in, but much money going out. Retirees need to spend on food, dietary supplements, medicine, transport, utilities and insurance premiums. The situation is compounded if they have children to see through college or university.

Retirees in their 60s are the new entrants in the sandwich generation. Longer life span means many retirees have elderly parents to support. This is an additional drain on their limited resources.

EPF’s Belanjawanku guide proposes that a retired couple living in the Klang Valley should budget for RM3210 a month and for a single senior, Rm2520. While this is a good guide, the reality is most retirees will spend more than that.

More importantly, how many can afford to continue spending that much monthly before they run out of savings?

The bottom line is this: retirees need to tighten their belts and cut corners. They can’t even afford to get sick, considering the hefty costs of health care and hospitalization. Those on government pension may have access to free or affordable medical and dental benefits, but there are millions more who are left out in the cold to fend for themselves.

What to do

Here’s what we can do. If you are planning to replace your handphone, computer or even your car, don’t do it yet. Wait for hand-me-downs from your adult children. They are always eager to own newer models, and will be happy to pass on their discards to their parents.

Cut down on eating out, especially at restaurants. Switch to eating at food courts.

The temple opposite Corus Hotel in Jalan Ampang, Kuala Lumpur, offers a wide range of vegetarian dishes for lunch at very affordable prices. But nothing beats home-cooked meals for better nutritional value and savings.

Go for cheaper alternatives. A good RM500 watch serves the same purpose as a RM2,000 one. Forget about losing face. At our age, there’s not much face to lose anyway.

Ladies, this also includes pricey cosmetics, handbags and clothes. Go for more affordable brands. It’s good to remind ourselves that often, less is more. As retirees, we don’t need to impress anyone.

Be smart shoppers. Go for value.

Resist the temptation to keep up with others. Your neighbours just spent RM100,000 on renovating their house. Good for them. Your best friend just bought 200,000 shares in a public-listed company. Congratulate him, but you don’t have to do the same.

Never borrow money. If you can’t afford something, either scale down or just abandon it. Avoid getting into debts.

Be prepared to make small adjustments to your lifestyle.

The key words are Downsize and Economise. Take fewer holiday trips abroad, or travel economy class and stay in budget hotels. After all, you will be spending the whole day out sightseeing. As long as the room is clean, the bed is comfortable and the toilet flushes, that’s all that matters.

If maintaining a car eats into your funds, opt for public transport. Get a MyRapid warga emas Touch n Go card and enjoy 50% off on all RapidKL public transport.

Look for special offers and sales. Don’t be embarrassed to ask about special concessions for senior citizens.

I pay only RM8 to see a movie during off-peak hours. Apply for members’ discount card from supermarkets, pharmacies and book stores.

Also look out for offers at restaurants. The same too for courses.

There are plenty of free online courses. Some universities and colleges offer a 50% off for retirees applying to further their studies.

Keep just two credit/debit cards. This will curb excesses in spending. Practice control when it comes to online shopping. With e-wallets, it has become super easy to pay for almost any small item, but it all adds up to a huge sum each month. Stay away from dubious online super sales.

Protect our nest egg like an eagle.

As for using EPF funds to start a business, conventional wisdom says “Don’t do it!”. Without the essential business know-how and with age against them, retirees are likely to end up losing every single ringgit they have invested in the business venture.

Only a handful will succeed in business after retirement, regardless of what wealth gurus may tell them.

The more fortunate among us may have access to multiple sources of income or rely on generous financial support from their children. But when your only source of funds is your pension or EPF savings, every ringgit counts.

Keep a record of every purchase you make, and total the numbers at the end of the month. You will be amazed at how much you have spent, and where all the money went.

To many new retirees used to drawing a four-figure salary, suddenly having their hands on hundreds of thousands of ringgit in lump sum withdrawal from EPF makes them feel rich and reckless.

Prudence goes out the window. No wonder all their retirement savings are gone long before they themselves are gone! Avoid withdrawing all your EPF savings. Opt for monthly withdrawals. The compound interest will help your savings grow.

Unless we have several golden geese that continue to lay golden eggs, we can’t afford to help our grown children with huge sums of money.

While it’s fine to donate small amounts to charity, it’s not okay to be paying for our adult children’s down payment on their new house, post-graduate studies, car loans, and even weddings. Remember, retirement funds are for our retirement, and not for helping our children with their financial commitments.

As parents, we love our children, but loving them also means letting them learn self-reliance. We have heard too many stories of irresponsible adult children getting their parents involved in their debts.

Some children become so used to parental support they expect their parents to step in whenever they need an injection of funds. The financial aid has to stop once the children start earning.

Remember the keywords

If there is one single item that will swallow up our hard-earned savings at one go, it has got to be medical expenses.

Surgery, rehabilitation, prescription drugs, medical treatment and procedures can cause severe hemorrhage to our retirement piggy bank.

We should opt for public hospitals and clinics if we can’t afford private hospital fees. They are just as good if not better.

Invest in an active and healthy lifestyle. Adopt an exercise regime that is cheap and effective. Brisk walking is free.

You don’t have to spend a cent on taiji or qigong exercises done at home or in the park. Take up hobbies. Join clubs or groups that promote free activities.

There’s no need to make big sacrifices or put a lid on our favorite pastimes. We can still have our cake and eat it – but without the icing, which isn’t good for our health anyway.

For pensioners and retirees with limited savings, and that means most of us, be prepared to make adjustments to ensure our savings will support us for the next 15-20 years. Or face the golden years with less glitter.

(Lily Fu is a gerontologist who advocates for seniors. She is founder of SeniorsAloud, an online platform for seniors to get connected and enjoy social activities for ageing well.)

The above article was first published in The Star on 10 April 2024, the online edition on 12 April at this link: https://www.thestar.com.my/lifestyle/family/2024/04/12/after-retirement-every-ringgit-counts

TIME FOR SENIORS TO 'THINK OUTSIDE THE CASKET'

Take the initiative to explore new horizons and never let our age stop us from trying new things that interest us.

Old age creeps up on us, and seems to speed up after we have passed the 70th milestone.

One fine morning, we wake up, look in the mirror and reality hits us literally in the face – we are no longer spring chicks, more like autumn turkeys! Where have all those years gone?

The thought of mortality is always there, unexpressed but silently acknowledged. Until the first signs of aches and pain remind us the clock is ticking away.

How do we want to spend our remaining years? By slowing down, by giving up fun activities for more serious ones as befitting our age, and according to society’s playbook? If this is what makes us happy and gives us peace of mind, by all means, go ahead.

But if in our hearts we want to sing, dance and celebrate life, and we are still able to do so, let’s just do it! Let’s break free from the shackles of social stigmas or self-imposed restrictions that are holding us back.

We all need a wake-up call sometimes before it’s too late and we are staring at Death from a hospital bed. Do we want to spend the rest of our lives merely existing instead of living?

The fastest way to speed up the ageing process is to think we are old and ready to die. We all have to die one day, but that shouldn’t stop us from having fun, adventure, romance and happiness while we still draw breath.

Live with no regrets

We’ve heard it before: 60 is the new 40 and 70 the new 50. Yet, there are many among us senior citizens who view themselves as 60 going on 80, and 70 going on 90. They think old, look old and act old. No wonder they feel they already have one foot in the grave.

We are not sixteen going on seventeen with a whole life ahead of us. Rather, we are heading towards the boarding gate for final departure. Let’s board with bagsful of happy memories, not regrets.

When we think we are old, we are. Our thoughts are very powerful. They govern how we behave and react. Upon reaching 60, there are those among us who retire not just from our jobs, but from everything that used to define who they are.

The first thing they give up is their physical appearance. In their minds, they are thinking – at my age, nobody gives me a second look, so why spend hard-earned money on unnecessary grooming.

Or they think they have been married for years, there’s no need to look good for their spouse. Their wardrobe consists mainly of auntie or uncle-type clothes in various funereal shades of black, brown and grey. If comfort is the reason, fine. But if they dress or act to please others, they are allowing others to dictate how they should be living their golden years.

Just going out, mixing with like-minded friends, learning a new skill will lift the spirits as we age. - PHILIPPE LEONE/Unsplash

Be true to yourself. Let others criticise all they want.

The men withdraw from social life, preferring to remain at home watching football on TV or hang out at the kopitiam or club with their buddies, discussing their favourite subject – politics and the state of the economy.

Few would consider taking up a new skill or activity to keep their minds sharp or join an outdoors group for some exercise. For the women, their stock answer to invitations to go out and enjoy themselves at a karaoke lounge, for example, is ‘Aiyah, old already, cannot sing!’

If you really love to sing and it makes you happy, don’t give it up just because you think you can’t sing anymore due to ‘old age’. You are suppressing the inner voice that is yearning to come out.

Many retirees allow themselves to go downhill upon retirement. They put on weight by avoiding all manner of physical activity. Their excuse – oh, at my age, I shouldn’t exert myself too much. Over time, they build up a host of health problems like high blood pressure, diabetes and heart disease.

They become frail and sickly, and dependent on others. They shun any form of physical exertion for fear of falling or hurting themselves. No one is suggesting they do marathons, climb mountains or shoot rapids.

Regular simple exercise such as daily brisk walking, stretching, and strength training is sufficient to ensure we remain fit in our senior years. Yet they make no effort to do so, and give a dozen reasons or excuses why.

Oftentimes the most painful (and expensive) lesson learned is when we have recovered from a major surgery or a near-death experience. That is the most effective motivator to get us to embark on a healthy lifestyle.

But why wait for that to happen?

Take the initiative to explore new horizons. Be fearless. Never let our age stop us from trying new things that interest us. When we spend our retirement years living a sedentary lifestyle, our muscles will soon atrophy. We will start complaining of aches and pains all over.

Before we even reach our 70s, we become dependent on all kinds of aids, from walking aids to hearing aids and every other aid in between. It’s time to get up from our favourite lazy chair and exercise. Don’t fancy exercising on our own? Round up some friends for a qigong session, or join a group that enjoys going for walks in the park.

The social interaction is a boost to our health. Make sure these friends have a positive influence on us. I can’t think of anything more depressing than spending our precious time hanging out with friends who talk about nothing but their pains and aches, who gripe about everything under the sun and who share only criticisms about others.

Get rid of the doldrums and go out. Feel the sunshine and the breeze on our skin. Take time to smell the roses, play with our grandchildren. Recharge. Be grateful that we can get up in the morning to greet another new day.

As is often repeated, growing old is a privilege denied to many. So true. As we age, we see the number of our former classmates, ex-colleagues slowly dwindling with each passing year. Don’t turn down class reunions. It could be the last time old childhood friends can meet up.

Have fun, travel, explore, discover.

This is the time to spend on yourself. Be selfish. We are never too old to pick up new skills, make new friends, even fall in love again. All it takes is a change of mindset and attitude.

The world is our oyster if we let it be. It’s time to get rid of the ‘I’m too old to...’ mantra and replace it with a new one: I’m still young enough to pursue my interests, to follow my dreams, to enjoy life!

Celebrate our second prime. The best is yet to come.

Constantly remind ourselves to make the most of our golden years, not waste them waiting for Death to knock on our door.

It’s so easy to fall into the ageing trap. Life is a choice. Choose wisely to make the last chapter of our lives truly well-lived. Time to think outside the casket!

Lily Fu is a gerontologist who advocates for seniors. She is founder of SeniorsAloud, an online platform for seniors to get connected and enjoy social activities for ageing well.

(The article was first published in the print version of The Star on 13 March. The e-version is accessible at https://www.thestar.com.my/lifestyle/family/2024/03/13/time-for-seniors-to-039think-outside-the-casket039)