Start your plans for retirement when you are still young

“TOO many people spend money they haven’t earned, buy things they don’t want, to impress people they don’t like” - Will Smith

I am sure some of you can identify with Will Smith.

Last year our Prime Minister announced the PRS Youth Incentive for youth between 20 and 30 years old.

They can enjoy a one-off rebate of RM500 for a minimum of RM1,000 PRS (private retirement scheme ) contribution .

Since the start of this incentive in 2014, I have been sharing this to the 20- to 30-year olds. Oddly, most of them balked at the idea that they wouldn ’t be able to with draw their PRS savings until reaching age 55 and that retirement age seemed too far away.

From a planning perspective, it’s sad that they hold such views. If we do not start to plan early in our adult lives, we will find planning in the later years more challenging.

Not man ywill be able to reach their financial goals if such views do not change.

We constantly hear lamentations that our Government is not doing enough or our Governmen t is not giving back to the rakyat.

The irony is when the Government initiates some thing like the Youth PRS Incentive to instil the habit of saving and planning for retirement, the target audience is not interested.

Most youth in this day and age only want instant gratification rather than opt for a voluntary saving plan which can provide for a better retirement.

The Youth PRS Incentive is essentially “free money” with an additional benefit of personal tax relief (up to RM3,000).

What they are more interested in is the next tech gadget or designer bag which costs a lot more than putting aside a mere RM1,000.

Some youth say they prefer their funds to be as liquid as possible so that they can purchase their own home in future.

A very valid reason but would RM1,000 put a dent in the funds they are putting aside to purchas e a property given the current property prices?

I am sure it won’t.

Dear youths of today, leaders of tomorrow, time really es when you are having fun.

In a blink of an eye, you are in your forties or fifties. Inflation is very real.

Start planning for your retirement now. Time and tide waits for no man.

by ong dan lin - vice-president of success concepts life planners
The writer can be contacted at info@successconcepts.biz