Financial independence after retirement

 

Back in the 1960s, my dad joined Penang General Hospital as a hospital assistant. He was just 19 years of age, earning almost $300 a month.

Contributing one-third of his income to his father, he learned to manage his finances, picking up a lesson or two on savings and investments.

A few years down the road, he settled down and became a family man. Realising he was not earning enough, he decided to look for new opportunities.

In the early 1970s, he joined a steel factory as a clinic assistant, earning $500.

With this income, my parents managed their household, providing for three young children. They even took the responsibility to care for two young relatives whose parents were financially struggling.

By the beginning of 1980, my dad had eight mouths to feed and six young souls to nurture under his roof.

Dad learned earlier on that he had no other financial support system but himself. So, he did what any rational person would do – he was meticulous with his money and saved extensively.

We seldom ate out. All our clothes and fabrics around the house were sewn by mom. And dad built most of our furniture with his two hands – cabinets, bed frames, reading desks, chairs, etc.

Though he was quite calculative with his finances, dad was very generous when it came to the children under his care.

Growing up, we were all well fed, well clothed, we had extensive book collections to read, and we always had fun activities lined up during school holidays.

My dad worked at the steel factory for almost 30 years before retiring at the age of 55. His decision not to delay his retirement came as much of a surprise because my dad had always enjoyed working.

Friends and relatives questioned dad’s decision to retire, suggesting that it was best if he continued working for a few more years.

After all, according to them, retiring when one is healthy and able to work, is a very bad decision – one that will be regretted.

“How are you going to pass your time?”

“Can you really afford to retire?”

But dad had made up his mind. He had spent 37 years of his life working. It was time to enjoy other things in life.

Being financially independent

My 78-year-old dad has spent more than 20 years being retired. Today, he fills his time gardening, reading, praying, fixing things around the house, running errands, and of course, watching YouTube and Netflix.

He keeps himself pretty busy with things to do.

With all the wise decisions he made during his working life, dad is still financially independent.

Every expenditure - be it food, groceries, utilities, medical care, or transportation – he takes care of it himself. He does not depend on anyone financially, not even his children.

In fact, when I began my journey as a single mother a few years ago, every time I needed a financial cushion, my dad was there for me and my children.

Even now, living under his roof, dad covers all the household expenses - including my food, electricity, and internet.

Being financially independent like my dad and being able to support your loved ones even after retirement, is something many people aspire to do.

I am sure there are many other senior citizens like my dad who have made good financial decisions in their younger years, in order to enjoy the benefits upon retirement. I truly applaud them.

Unfortunately, not everyone is financially abled in their senior years. Many are living one day at a time.

Unable to support their financial needs, they constantly worry about expenses and utility bills, and they cannot even afford to get sick.

Working out of necessity

My 68-year-old retired friend is one of them. He generously gave a big portion of his lifetime savings to his children only to end up dependent on them for monthly allowances.

With his children now micro-managing his spending, his pride is bruised, and he is desperately looking for a job.

Recently, I received a message from a reader via my social media, asking me how she too can become a columnist.

At the age of 71, she claims money is becoming quite tight and so she has begun looking for new opportunities.

As a retired teacher, she has tried offering tuition classes, unfortunately, she cannot compete with younger tutors who are better at marketing themselves.

An acquaintance of mine has a different story. He worked as a driver his whole life, earning a very modest income.

Upon retirement, he took up a part-time job as a security guard for a little financial freedom. Though he feels blessed to be able to earn a little extra, he knows the job would not be his forever.

I can fill several pages of true stories about senior citizens in my network, facing financial constraints and desperate for jobs.

I can also tell you stories about senior citizens I see every day – driving taxis and e-hailing services, delivering food, selling nasi lemak and apam balik by the street, scavenging trash bins for recyclable items - but I am sure they exist in your surroundings too.

Honestly, I cannot imagine the dilemma these folks go through every day. At a time when life’s final chapter should be enjoyed in peace, they struggle… every day.

What is more disturbing is knowing that down the road, more folks will go through the same dilemma.

With many having succumbed to withdrawing money from the Employees Provident Fund (EPF) and others tempted to continue doing so, certainly, many of us will end up retiring without enough savings for our old age.

Govt has a role to play

As much as I believe everyone should save during their younger days for a comfortable final chapter of their lives, we can never assume that senior citizens needing a job is proof they did not plan well for retirement.

Some people may have made financial plans, but circumstances took away their savings.

The question now is, how do we support these senior citizens?

Frankly speaking, our society does a lousy job of providing options and opportunities for our seniors.

We often ignore their ocean of experience and pigeonhole them into babysitting, chauffeuring grandchildren, storytelling, cooking, and feeding.

They may have been teachers, nurses, shopkeepers, accountants or entrepreneurs – but we discount their achievements, knowledge, and skills when we see their grey hairs, stiff joints, and weaker bodies.

Thanks to our tendency to sort people into categories and dismiss senior citizens as if they are liabilities, folks who cannot afford to retire often end up not being able to find other opportunities.

I feel our Madani government has a very important role to play, not only in reminding our society to have good financial habits and save for retirement but also to build a nation that is responsive to the needs of senior citizens.

We need to create an environment that appreciates senior citizens. After all, they comprise more than 10 percent of our population. They are not all financially independent like my dad. They need support.

The government must encourage job opportunities for older people based on their skills, health, and capabilities. Better still, set up a database of senior citizens looking for jobs and offer special incentives to companies who take them in.

Less demanding jobs such as cashiers at retail outlets could be offered to senior citizens. Right now, some of these jobs are taken by migrant workers.

The government can also create simple opportunities for seniors to enjoy life. For instance, design parks with facilities where they could offer a game of chess, checkers, or “chor dai di” for a small fee.

I don’t know about you, but I’d love to spend my evenings at such parks!

Let our seniors live with pride. Let us be a nation that cares for its senior citizens. - Mkini

---

FA ABDUL is a multi-award-winning playwright and director in the local performing arts scene, a published author, television scriptwriter, media trainer, and mother. Her ultimate mission in life is to live out of a small suitcase.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.