Retirement planning means making preparations for your future life so that you can continue to live your dreams independently. When you make one, don’t forget to set your retirement goals so that you can estimate how much money you will need. As Malaysians, we can look to Budget 2023 to plan for retirement.
Budget 2023 incentives
To help Malaysians save for retirement, the government announced some incentives in Budget 2023, including an increase in the self-contribution limit and tax deductions. These incentives include:
- The government will provide a bigger EPF self-contribution limit from RM60,000 currently to RM100,000.
- EPF self-contributions will also be tax deductible; they will be claimable under an expanded scope for takaful or life insurance premiums up to RM3,000.
- Homemakers who contribute at least RM60 per year to the Kasih Suri Keluarga Malaysia program will receive an additional matching incentive from the government of up to RM600, which includes RM480 in EPF savings and RM120 in SOCSO contribution.
- Through the EPF i-Saraan voluntary contribution program, the government will provide a bigger matching contribution incentive from RM250 to RM300.
Retirement planning with Budget 2023 incentives
According to the announcement from Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Malaysians will experience a positive impact in terms of financial conditions. This decision is specifically made to ensure citizens have retirement savings and encourage better retirement planning.
A retirement plan is necessary to move forward. After all, you are retiring from work, not life. At this stage, you may experience a shift in perspectives; hence it makes sense if there is a new set of dreams in mind. When you start a job, your goals may include getting married, buying a house, and supporting your children through school. Retired life is different, however.
After retiring, you may want to explore dreams you haven’t fully experienced before, such as spending more time with loved ones and travelling the world. Retirement planning may also include a new interest or knowledge to indulge curiosity.
Retirement planning tips
Each person may have different approaches to planning their retirement. However, if you’re still unsure how to start one, here are some tips to get you started.
1. There is no better time; only now
The upcoming government incentives aim to improve citizens’ lives after retirement. You may think that now is not the best time to plan for retirement, but postponing only worsens it. Remember that it is never too early or too late to start planning. There are only now, and Budget 2023 incentives only further this matter.
2. Be realistic
A comprehensive retirement plan should also determine when you will retire and start saving and how much money you will set aside each month. With the new incentives, you now have more money to allocate towards this purpose. Reduce unnecessary costs to enjoy a better life in the future.
Saving money also means paying attention to your investments. Check on your assets periodically to ensure they are still in good condition and that everything is adjusted accordingly.
To spend your retirement, do you prefer to travel, acquire a new hobby, or generally enjoy life altogether? Planning allows you to set and navigate the path to achieve your goals without financial dependence. If you need any help in funding your retirement planning, Funding Societies offers a convenient solution for you. Contact Funding Societies to get a suitable investment option now!