You Are In

  • Life Goals
  • Day To Day Banking
  • Deals & Promotions
  • Digital Services
  • Help & Support
  • Quicklinks

Why is financial retirement planning so important? According to EPF, 70% of Malaysians who withdrew their savings at age 55 use it up in less than 10 years*. Our life expectancy is also steadily increasing to about 75 years** - so it is important to build enough savings to last our retirement years.


Whether you are just starting out or getting closer to your golden years, here are four retirement Do’s and Dont’s to ensure that you won’t outlive your retirement savings.

Don’t underestimate your retirement needs 


When you retire, how much would you need in a month? Do you want to downsize, relocate, or maintain the same quality of life? These are the questions you should realistically answer when you’re planning your retirement budget.


Give this retirement calculator a try and start planning today.


Don’t forget to factor in inflation and add additional frills such as travel – and take note of depreciation of assets. One reason people outlive their retirement savings is by underestimating their retirement needs. So always aim to overestimate, not underestimate.

Do diversify your investments 

EPF recommends a minimum amount of RM228,000 by the time you’re 55, which gives RM950 in monthly expenditures over 20 years***. Strive to supplement this with additional retirement savings of your own such as Private Retirement Schemes and from other investment assets.


Your investment plan should also reflect your age progression. In the 20’s to 30’s, you can take higher calculated risks in exchange for higher returns (e.g. stock market trading), and long-term investments (e.g. property purchases).


When you near retirement age, your portfolio should lean more conservatively. You should be restructuring high-risk investments to low-risk guaranteed returns, such as an insurance policy that promises a yearly income

Do start saving early 

As the saying goes, “make your money work for you” and take advantage of compound interest early on. For example, a 25-year old person who saves RM5,000 a year for a decade will accumulate more wealth in their retirement years compared to a 35-year old person who saves the same amount until they retire.


Starting to save early puts you at a tremendous advantage. One way to make your money grow even faster is through fixed deposits – as these typically provide higher interest rates compared to an average savings account.

Don’t forget your health

Our health and medical needs change as we mature. We might require hearing or visual aids, increased dental services, and more frequent medical check-ups. The last thing you want is for an unexpected hospital bill to get in the way of your retirement plans.


Prepare yourself by investing in health insurance that covers medical fees not limited to accidents only. You can take it a step further by considering an all-in-one type of insurance policy, where you get insurance coverage, partial savings, potential investment returns, and a guaranteed yearly income.


Retirement is the ideal time to pursue your dream life. With some proper planning, you shouldn’t have to wake up worrying about outliving your retirement savings, and instead live your best life.







This article is brought to you by CIMB as part of our ongoing efforts to raise the level of financial literacy among Malaysians. Financial knowledge and understanding are key to making well-informed and meaningful financial decisions that will improve all our well-being. This, in turn, achieves CIMB’s purpose of advancing customers and society.