Why do many people struggle after retirement?

I read an article recently about how most Malaysians cannot afford to retire. According to the article written by an economist, the current Employees Provident Fund (EPF) savings for most Malaysians are barely enough for a decent life after retirement.

I do have many elderly relatives who are struggling after retirement, having to find part-time jobs as security guards, shop assistants or Grab drivers. Many of them also turn to their children to make ends meet.

But I do wonder, if it is true that life gets difficult after retirement, why is the inability to support themselves not affecting everyone below the lower medium class threshold?

My dad, for example, chose to retire at the age of 55. Coming from a family of more than a dozen members who survived on the salary of a rent collector and a shopkeeper, he was denied his dream to become a doctor. Not only did my dad not obtain any degree, he also did not have a wealthy family to inherit anything from.

For thirty years, my dad worked as a clinic assistant in a steel factory in Butterworth. Having to manage a household with his small salary, despite his love for children and his dream to have lots of them, mom and dad opted to have only three – as that was all they could afford.

However, they ended up taking in two more members under their care – mom’s little sister and dad’s niece – to assist their own family members who were struggling to make ends meet at the time.

With seven members under one roof, dad was very meticulous with his money. I remember him giving me rubber bands when I complain of my loose pair of socks and helping me to tie my schoolbag (which used to be his old briefcase) with strings when the locks stopped working.

I also remember him getting chicken from the wet market when my brothers and I request for KFC and murtabak from Jelutong when we asked for pizza. He was always calculative with his money.

The value of budgeting

My brothers and I grew up thinking we were poor. Of course, we had an old Nissan and a comfortable house, plenty of food to eat and plenty of books to read – but mom always sewed our clothes, toys were always something we made ourselves and holidays were always trips to Batu Ferringhi. We were constantly on a tight budget.

When I failed to get scholarships to pursue my studies after secondary school despite being the top student, dad became my sponsor. I remember my jaw dropping when we went through the list of fees to do CIMA (Chartered Institute of Management Accountancy) at Regent School of Economics back in the 1990s – topped up with the examination fees in pound sterling and accommodation in the metropolitan city of KL, I was amazed how dad could afford it while still managing our household.

Dad choosing to retire at 55 was his personal choice. I remember people advising him not to do so – some said he may struggle without the income while others said he may get bored staying home. I must admit, I myself was puzzled because my elder brother had just begun his practical training while my little brother had just entered university at the time.

But dad had plans. He always does.

“I want to go to the mosque. I want to attend religious talks at Madrasah. I want to read. I want to do gardening. I want to help your mother around the house. And I want to spend time with my future grandchildren. There’s a lot to do.”

It has been some twenty years since dad’s retirement. He has been to Mecca three times; changed his car twice; and watched plenty of movies on YouTube. But he is still financially independent and refuses any aid from his children.

“How do you do it?” I asked him this morning upon sharing the article with him.

“Planning,” he answered briefly.

“Is that why you think many others are struggling to make a living after retirement?”

“Yes. Poor planning leads to poor choices which in turn leads to poor lifestyle,” my guru explained.

Instantly, I remembered a few people I’ve met along the years whom, just like dad, made great plans for their future and lived long enough to enjoy the fruits of their labour.

My neighbour, an uncle in his late 60s, is a good example. With his income from driving a taxi for the past four decades, he has bought three houses and sent his two children to study overseas. Today, he lives comfortably, earning from his house rentals and still drives a taxi as a hobby.

Planning for retirement

I also remember the kakak who sold nasi lemak by the roadside in my old neighbourhood - upon finding out that I was a single mom just like her, she advised, “Jangan harapkan anak-anak, rajin-rajin la menabung dari sekarang untuk masa tua. Akak sendiri dah ambik skim pinjaman masa tua – tiap bulan bayar beberapa ratus, bila umur dah cecah 60 dan tak larat nak kerja dah, dapatlah simpanan sikit untuk masa tua.” (Don’t depend on your kids, start saving for your retirement from now. I have taken a retirement loan – every month I pay a few hundred ringgit and when I am in my 60s and unable to work, I will receive some money for my old age.)

As I recalled a few other people I’ve met who did take the initiative to plan for their future, dad continued, “Planning should start early, when you are young. Don’t take up habits which will cost you for the rest of your life - that includes cigarettes, alcohol, drugs, gambling. Plan when you begin your career - don’t subscribe to a lifestyle you cannot afford. Plan before building a family – how many children can you afford?”

“It’s all about planning, Fa. People who struggle after retirement are those who fail to plan ahead. No matter how tough our economy gets, there is still hope to make a decent living, if only we plan well.”

In his 70s, my dad still plans. He takes the bus more than the car to save on fuel. He plants vegetables to save on groceries. He exercises and goes for walks to save on hospital bills. He’d walk up and down checking ten stores before purchasing one item, just so that he could save a few ringgit. For my dad, planning has become a habit.

Truth is, it is a norm for everyone to worry about their old age. At 42, I find myself worrying about it too. But if worrying is all we do, then we will continue to worry on our deathbeds. So why not stop worrying and start planning instead?

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FA ABDUL is a passionate storyteller, a growing media trainer, an aspiring playwright, a regular director, a struggling producer, a self-acclaimed photographer, an expert Facebooker, a lazy blogger, a part-time queen and a full-time vainpot.- Mkini