NOT READY TO BE PUT OUT TO PASTURE

At long last, the government has agreed to raise the retirement age. But it will take many more months of waiting before we can pop the champagne bottle. The new retirement age has yet to be fixed, and the Bill has yet to be debated in Parliament. Still, it's heartening news.

However, not everyone is in favour of a higher retirement age.

Young working professionals are concerned that it would be harder for them to rise through the ranks if the seniors are still occupying the top positions in the company. Their fears are understandable.

But they should look at the big picture. One day they too will reach 55. With the mandatory new retirement age, they will have several working years ahead of them to remain financially independent. They will have more years to build a bigger retirement nest. Another plus point is adult children can delay having to support their elderly parents for at least a few more years.

Click here to read the original letter.

There are also protests from soon-to-be retirees who have been waiting to punch out for good at the work-place. Some have saved enough for their retirement, others are impatient to start their own business venture. Whatever the reason, they can't wait to say bye-bye to the daily grind of working for others.

A government pension does not necessarily translate into lifelong financial security. (Source: The Sun 29 Sept)

Let's face reality. How many among us can honestly say we have sufficient funds to last us till our final years, given the longer life span we now enjoy, and the escalating healthcare expenses?

Here are some figures to put the issue into perspective. The EPF was first set up in 1951. At the time life expectancy of the average Malaysian was 55 - the same as the retirement age then. Now, 60 years later, the average life expectancy has gone up to 75, but the retirement age has remained at 55. That means we have to save enough to live on for another 20 years.

Source: The Star

In an EPF survey conducted in 2003, 50% of retirees had depleted their savings within five years of retiring, and 70% within 10 years. These figures should sober up anyone thinking of retiring in a hurry.

Related posts:

NOT QUITE READY TO RETIRE 

AT 55, ARE YOU READY TO RETIRE?

CAN YOU DO WITHOUT A CAR?



For those who drive, it's a daily grind on the city roads.

My answer is YES. But the question I am more often asked is "HOW can you do without a car!" Indeed, coming from my friends, it's not even a question, but rather, an incredulous exclamation.

I gave up driving in 1998. At the time I was driving a blue Chrysler Alpine 1300. Before that I had a Volvo 121. These were imported vehicles that were heavy to drive, and costly to maintain. Both cars had no power steering. I remember working up a sweat everytime I manoeuvred my car into a parking bay.

Driving in the 1970s and 80s was really stressful. There were more STOP signs than traffic lights. You had to take your chances at junctions. Busy roundabouts were for the brave-hearted or the reckless. I was neither, and often the cause of a minor traffic build-up behind me. Added to all that stress was the high cost of keeping my car in running condition. Just replacing the tyres took a huge chunk from my modest teacher's pay.

I didn't have a choice then. I needed a car to go to work, and to ferry my girls to school. As soon as they left to further their studies, I found little reason to hang on to my Chrysler. I sold it for a song, and gave my parking bay to my neighbour.

It's been 13 years now without a car. I've survived mostly on public transport and on kind friends who give me rides. I still have a valid driving license which I renew faithfully in case I have the urge to get behind the steering wheel again.

So far, that urge hasn't surfaced. I've been quite content to remain a passenger in the bus and let the driver take on the stress of getting through the traffic gridlock. I make sure I have a book with me or a notepad to jot down ideas and thoughts that come into my head.

I've become quite good at keeping my mind busy while waiting for the bus to arrive. Patience has become my middle name. No point complaining about delays, queues or congestion. It only raises your blood pressure. I've learned to bear with the inconvenience. I look at it positively. I'm saving money, enjoying peace of mind, and contributing to a cleaner environment!

Sure, the bus doesn't drop me off at my front door. But I regard brisk walking as good exercise for my legs. Carrying shopping bags and groceries is part of my strength-training regime and a little daily exposure to the sun is great for health.

I get all these benefits at a fraction of what I would spend if I still owned a car. With my senior citizen's Touch n Go card, I get to travel anywhere in the Klang Valley by RapidKL bus at half fare. Of course, our public bus system leaves much to be desired. And I can write an entire book about it, but I shall leave my grouses to the next blog post.

So there, I've done my small part to reduce traffic congestion, air pollution, and fuel consumption. I know it won't be easy to convince city dwellers to give up their cars. At least not until they see significant improvements in the public transport system.

Related post

ARE AGEING DRIVERS A HAZARD ON THE ROAD?