Why You Should Save for Retirement While You’re Young
1. Financial independence
As the saying goes, “Sedikit-sedikit, lama-lama jadi bukit.” When it comes to investing your savings, the earlier you start, the greater the accumulated returns on your original investment due to compound yield. By investing consistently and regularly you are able to secure yourself a comfortable retirement without having to depend on others. Work towards accumulating enough to cover the cost of your basic necessities, lifestyle expenses and occasional splurge on luxury items.
2. Saving is a good habit to develop
By developing the habit of saving from a younger age, you will find that it becomes second nature to put aside money each month for your retirement; instead of splurging it on unnecessary items. It helps to start with small amounts especially for young adults who are just entering the workforce so that it’s not as overwhelming. How you manage your paycheck will determine how you save for the rest of your earning years. A person who is used to saving on a monthly basis will find it easier to set aside 10% of their salary for retirement, as opposed to an individual who is not used to spending their money prudently.
3. Gain control over your future
When you set aside money for your retirement, remember that you are shaping YOUR future. This is a task no one else will perform or push you to do. By saving consistently, you are ensuring that you are well-prepared for any outcome when you leave the workforce. With sufficient savings, you will most likely be able to maintain your current lifestyle even during your retirement years - promising you the peace of mind of a secure financial future.
4. RM 3,000 Tax Relief on Private Retirement Scheme contribution*
You are allowed to claim a tax relief on the amount of Private Retirement Scheme contribution you make, subject to a maximum amount of RM3,000 per annum.
*Terms and Conditions apply
This article is prepared solely for educational and awareness purposes and should not be construed as an offer or a solicitation of an offer to purchase or subscribe to products offered by Public Mutual. No representation or warranty is made by Public Mutual, nor is there acceptance of any responsibility or liability as to the accuracy, completeness or correctness of the information contained herein.