I am in my late-forties, a Malaysian living in Selangor. In my blog, I’d like to share the key elements of my strategy that is setting me on the path to a secured retirement. Generally, I break my retirement planning into two areas: pre-retirement planning and post-retirement journey. Pre-retirement planning includes the sub-areas that I need to do right now before I reach my retirement age. In post-retirement, it is my plans on how I would want to lead my life after retiring. The retirement lifestyle I want might incur additional cost, hence these two need to co-exist in my retirement plans.

Retirement Planning Focus Areas
Financial Goals and Income Replacement
My aim is to replace at least 70% of my pre-retirement income. This target is based on the understanding that my expenses may decrease in some areas, but I still want to maintain a comfortable lifestyle. I’ve calculated how much I need to save to achieve this goal, considering my current income and expected retirement age.
Utilizing EPF and Other Retirement Accounts
In Malaysia, the Employees Provident Fund (EPF) is a crucial part of retirement planning. Currently, I am contributing the mandatory 11% of my salary, and I also make additional voluntary contributions to boost my savings. I have also explored other investment options, such as unit trusts and stocks, or perhaps PRS to diversify my portfolio and potentially increase my returns over time.
Health Care Considerations
I have factored in health care costs, which can be significant in retirement. I plan to have a comprehensive health insurance policy that covers medical expenses, as well as a separate fund for any unexpected health-related costs. This preparation is essential to avoid potential financial strain later on.
Lifestyle Planning
I have thought about the lifestyle I want in retirement, including travel and leisure activities. By estimating these costs, I can better understand how much I need to save. I also plan to engage in community activities and hobbies that will keep me active and fulfilled during retirement.
Continuous Review and Adjustment
I regularly review my retirement plan to adjust for changes in income, expenses, and life circumstances. This flexibility is key to ensuring that I remain on track to meet my retirement goals. I also use retirement calculators available online to assess my progress and make necessary adjustments.
Post-Retirement Living Arrangements
Planning for post-retirement living arrangements is a crucial aspect of overall retirement planning. Here are some considerations I’ve made regarding my living arrangements after retirement:
1. Location: I have put in considerable thoughts on my living arrangements after retirement. Factors influencing this decision include:
- Proximity to family and friends: Living near loved ones is important for social support and maintaining relationships.
- Climate preferences: I prefer a warmer climate, which makes certain regions in Malaysia appealing, such as Penang or the East Coast.
- Access to amenities: I want to make sure that essential services, public transport, healthcare, and recreational activities are easily accessible.
2. Housing Options: I have also explored different housing options as my needs will differ when I am retired.
- Downsizing: I may not require a large space and hence moving to a smaller home will make it more managable, reduce maintenance cost, and free up capital.
- Retirement Communities: These communities can offer a range of facilities and social activities, making it easier to connect with peers.
- Staying Put: Remaining in my current home is also an option, provided that it remains manageable and suits my needs as I age.
3. Financial Considerations: I amaware of the financial implications of my living arrangements, including:
- Budgeting for Housing Costs: I have planned for ongoing expenses such as property taxes (cukai pintu, cukai tanah, indah water, etc), utilities, and maintenance (home repair).
- Income from Investments: I also consider how my retirement savings and investments will contribute to covering living expenses.
4. Lifestyle and Activities: I aim to maintain an active lifestyle post-retirement, which involves:
- Engaging in Hobbies: I plan to pursue hobbies like gardening, photography (camera and lens are expensive), traveling (not cheap too), or volunteering (perhaps the best, as contribution is one way that will make a person feel happy), which can enrich my life.
- Physical Activity: Staying physically active is important, so I’ll look for communities that offer fitness programs and outdoor activities. In fact, gardening is also a physical activity?
5. Health and Social Wellbeing: I am prioritizing arrangements that support my health and social life, including:
- Proximity to Healthcare Services: Easy access to medical facilities is essential as I age. Unless you are rich enough to hire a personal driver. 🙂 I will either drive, take the public transport, or get a taxi.
- Social Engagement: I want to be part of a community where I can socialize and make new friends (hopefully I can, as I am a big introvert), which is vital for mental health.
By considering these factors, I can create a living arrangement that supports a fulfilling and enjoyable retirement. Planning ahead helps ensure that I can adapt to changes and maintain a high quality of life in my post-retirement years.
Estate Planning
I have started considering estate planning as well, ensuring that my assets are distributed according to my wishes. This includes drafting a will and considering trusts if necessary, to provide for my family and manage my estate effectively. By following these strategies, I feel confident that I am well-prepared for retirement, allowing me to focus on enjoying life as I approach this new chapter.