Many Malaysians rest easy knowing that part of their monthly salary goes to the Employees Provident Fund (EPF), ensuring that they’d be financially stable once they retire. Some are pleased that their subscription to insurance policies and investments in unit trust, together with their EPF savings will guarantee a fruitful retirement. But are Malaysians being stupidly ignorant for thinking all that is enough?

The simple answer is yes.

EPF data has shown that some 80% of contributors do not have sufficient savings during their retirement. In its annual report for 2011, the average savings in EPF for inactive members is just over RM20,000. For active members at the age of 54, it stands at just over RM100,000. If one’s lifestyle and expenses amount to RM5,000 a month, that makes a total of RM60,000 a year for expenses. How will EPF savings alone help sustain your expenses over the next 20 years?

This then begs the question - are Malaysians ready for retirement? Do they realise that their EPF savings alone will not be enough to see them through their elderly years?

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