A concerning statistic from the RinggitPlus Malaysian Financial Literacy Survey 2024 reveals that 40% of Malaysians have not yet started planning for their retirement. This delay is primarily attributed to low financial literacy, the rising cost of living, and ongoing structural wage challenges. As a result, many individuals struggle to balance their everyday financial obligations while preparing for long-term security, especially retirement. However, effective financial planning doesn’t need to be overwhelming. 

Tools like the Belanjawanku Guide, the Retirement Income Adequacy (RIA) Framework, and Akaun Fleksibel can empower you to manage your finances and set a solid foundation for a secure future.

Managing Daily Expenses With The Belanjawanku Guide

The first step in securing your financial future is understanding where your money goes each month with the help of The Belanjawanku Guide. First introduced in 2019, the updated 2024/2025 guide now offers revised benchmarks to help Malaysians estimate the minimum monthly expenses required for a reasonable standard of living. It categorises essential expenses, such as housing, food, transport, utilities, and healthcare, along with discretionary costs like social participation and family contributions. This provides a clearer picture of your financial situation, giving you a clearer picture of your financial situation.

With this clarity, you can gain awareness of your expenses, identifying spending patterns and uncovering opportunities to save. The guide helps you recognise areas where you may be overspending, enabling you to make informed decisions about where to be prudent and allocate your resources more efficiently. It also encourages living within your means by prioritising your financial needs over wants, helping you avoid unnecessary expenses and ensuring your spending aligns with long-term financial goals. 

By using the Belanjawanku Guide regularly, you can develop healthy financial habits that lay the foundation for a secure future. Over time, managing your expenses thoughtfully will help you achieve financial independence, providing a strong base for growth and preparing you for any unforeseen financial challenges.

Securing Your Future With The RIA Framework 

While managing your daily expenses is crucial, it’s just as important to plan for the long term. The Retirement Income Adequacy (RIA) Framework helps you achieve this by focusing on building adequate retirement savings. This three-tiered framework is designed to reflect the rising cost of living, adjusting your savings targets as necessary to ensure you are financially prepared for the future. 

The framework includes three savings benchmarks: 

• Basic Savings: RM390,000 at age 60, ensuring you can cover essential retirement needs such as basic living expenses and healthcare. 
• Adequate Savings: RM650,000, allowing you to maintain a comfortable standard of living in retirement. 
• Enhanced Savings: RM1.3 million, providing greater financial freedom and the ability to enjoy a higher quality of life.

Through the RIA Framework, the withdrawal policy for savings above RM1 million will be aligned with the Enhanced Savings benchmark, offering members greater flexibility in managing their surplus funds. EPF members can diversify their investments under the Members Investment Scheme (MIS). This scheme allows up to 30% of their savings in Akaun Persaraan that are above the Basic Savings benchmark to be invested in approved funds. 

In addition to the Belanjawanku Guide and the RIA Framework, Akaun Fleksibel offers members an option to manage their retirement funds with more flexibility. Introduced earlier this year under the EPF Account Restructuring initiative, Akaun Fleksibel allows savings to be withdrawn at any time, offering members flexibility for short-term financial needs.

The main focus of the EPF Account Restructuring initiative is to empower members in making decisions to balance future needs for retirement between short-, medium- and long-term financial needs. This initiative will also help increase members’ retirement savings, contributing to sufficient income to sustain their needs after retirement.

Take Control Of Your Future 

By understanding your current expenses and planning for your retirement with the Belanjawanku Guide and RIA Framework, you can take proactive steps toward financial stability. These tools offer the guidance needed to secure your future while also helping you avoid unnecessary withdrawals from Akaun Fleksibel. 

Find out more about how these tools can guide you towards a financially secure future today.

• TAGS:
• Belanjawanku Guide
• EPF
• RIA Framework