"Retire From Real Life"

TRENDS
.people are living longer-life expectancy for women is 76 years and men 72
.they are marrying and having children later
.at retirement age, the children are still in school or university.
.70% of retirees use up all their epf money within three years after retiring.

LIVING COSTS AND INFLATION
.inflation is 6% in urban areas
.3 meals a day at rm20 now may cost rm64 in 20 years
.rm500'000 in your epf or bank account at retirement may have the purchasing power of rm145'053 in 20 years
.medical inflation is 15% each years

CASE STUDY
.if a family in kuala lumpur with two kids and two cars needs rm5000 today , at retirement, expenses should go down to rm3500 or 70% of one's current lifestyle
.one would need rm747,000 if one were to live for 25 years, but the average contributor has only rm106,000 in his epf account when he retires.