M’sian Man Drains RM750K In EPF Savings Within 7 Years, Uses Wife’s Pension To Survive

He's fortunate his wife's pension lightens their financial load in their later years.
Retirement is a milestone many look forward to after years of dedicated service in their respective careers.

However, for Abdul Rahman Abdullah, a former manager of a direct sales company on the East Coast, retirement brought both fulfilment and financial challenges. His story serves as a valuable lesson on the importance of managing retirement funds wisely.

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Man drains RM750K In EPF savings within 7 years

Kwsp epf branch
Photo via WeirdKaya

Abdul Rahman’s journey into retirement began in 2017 at the age of 57, following 27 years of service with a company based overseas, reported Sinar Harian.

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Here’s how Abdul Rahman’s retirement journey unfolded:

  • In 2017, he had amassed RM750,000 in EPF savings, split between RM500,000 in Account 1 and RM250,000 in Account 2.
  • Initially, Abdul Rahman envisioned a comfortable retirement. He allocated funds for household renovations and family celebrations, including:
    • Investing RM200,000 in home upgrades such as concrete fences and expansions to the kitchen and garage.
    • Using RM70,000 for his daughters’ weddings in 2016 and 2018, reflecting his commitment to family values.

Facing financial realities: Depleting EPF savings

Ringgit notes in hand
For illustration purposes only. Photo via Canva

However, as the years passed, Abdul Rahman faced the harsh reality of managing his retirement finances amidst rising living costs.

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Daily expenses, such as groceries, utilities, and transportation, gradually depleted his EPF savings.

He observed that even routine grocery shopping required a significant portion of his retirement funds, highlighting the challenges retirees face in sustaining their lifestyles.

“Every time I go out to buy groceries, I need to have RM100 or more,” he said.

Even with money troubles, Abdul Rahman stayed tough, stressing how crucial it is for retirees to spend smart and stick to a budget. He advises other retirees to keep a close eye on their spending to make sure their EPF funds last through retirement.

Gladly, he considers himself fortunate to have a wife who receives a pension, easing the financial burden during their twilight years. Their partnership exemplifies the solidarity and mutual assistance necessary for retirees to thrive in their post-career lives.

“I’m fortunate because my wife, aged 62, receives a pension as a retired government employee. Her pension helps us cover our expenses as we grow old,” he concluded.

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