ANN/THE STAR – A single apple costs MYR1.60. Just a few months ago, it cost just 90sen at my local store! It seems that pensioners cannot afford to eat an apple a day to be healthy!
While some retirees may not be concerned about increasing costs for almost everything, from food and gasoline to utilities and services, the vast majority will need to reconsider their spending patterns.
They will have to consider methods to extend their retirement resources.
According to Employee Provident Fund (EPF) data, just 33 per cent of active members have basic savings of MYR240,000 as of last year. What about the remaining 67 per cent? What about people who do not contribute to the EPF and have very little savings? We can’t expect our adult children to support us indefinitely. They have their own financial commitments to deal with. The best way to help them is to be able to support ourselves.
So the daily struggle continues. The fortunate ones are those who have planned well ahead for their retirement, have money to invest in shares or have generous children to fall back on.
For the rest of us, it’s a case of no money coming in, but much money going out. Retirees need to spend on food, dietary supplements, medicine, transport, utilities and insurance premiums. The situation is compounded if they have children to see through college or university.
Retirees in their 60s are the new entrants in the sandwich generation. Longer life span means many retirees have elderly parents to support. This is an additional drain on their limited resources.
EPF’s Belanjawanku guide proposes that a retired couple living in the Klang Valley should budget for MYR3,210 a month and for a single senior, MYR2,520. While this is a good guide, the reality is most retirees will spend more than that.
More importantly, how many can afford to continue spending that much monthly before they run out of savings?
The bottom line is this: retirees need to tighten their belts and cut corners. They can’t even afford to get sick, considering the hefty costs of health care and hospitalisation. Those on government pension may have access to free or affordable medical and dental benefits, but there are millions more who are left out in the cold to fend for themselves.
Here’s what we can do. If you are planning to replace your handphone, computer or even your car, don’t do it yet. Wait for hand-me-downs from your adult children. Cut down on eating out, especially at restaurants. Switch to eating at food courts.
But nothing beats home-cooked meals for better nutritional value and savings.
Go for cheaper alternatives. A good MYR500 watch serves the same purpose as a MYR2,000 one. Forget about losing face. At our age, there’s not much face to lose anyway.
Ladies, this also includes pricey cosmetics, handbags and clothes. Go for more affordable brands. It’s good to remind ourselves that often, less is more. As retirees, we don’t need to impress anyone.
Be smart shoppers. Go for value. Resist the temptation to keep up with others. Your neighbours just spent MYR100,000 on renovating their house. Good for them. Your best friend just bought 200,000 shares in a public-listed company. Congratulate him, but you don’t have to do the same.
Never borrow money. If you can’t afford something, either scale down or just abandon it. Avoid getting into debts. Be prepared to make small adjustments to your lifestyle.
The key words are downsize and economise. Take fewer holiday trips abroad, or travel economy class and stay in budget hotels. After all, you will be spending the whole day out sightseeing.
As long as the room is clean, the bed is comfortable and the toilet flushes, that’s all that matters. If maintaining a car eats into your funds, opt for public transport.
Look for special offers and sales. Don’t be embarrassed to ask about special concessions for senior citizens.
I pay only MYR8 to see a movie during off-peak hours. Apply for members’ discount card from supermarkets, pharmacies and book stores.
Also look out for offers at restaurants. The same too for courses.
There are plenty of free online courses.
Keep just two credit/debit cards. This will curb excesses in spending. Practice control when it comes to online shopping. With e-wallets, it has become super easy to pay for almost any small item, but it all adds up to a huge sum each month. Stay away from dubious online super sales.
Keep a record of every purchase you make, and total the numbers at the end of the month.
Unless we have several golden geese that continue to lay golden eggs, we can’t afford to help our grown children with huge sums of money. – Lily Fu
