Many people think EPF savings is enough for retirement.
However, a study showed that 70% of ex-EPF members exhausted their EPF savings within 10 years.
As a consultant, I have met many people aged 50s and retirees. One of the questions I sometimes ask is how much is their EPF savings vs their last withdrawn salary.
From this exercise, I would be able to advise them on how much they can spend monthly and how to sustain their wealth during retirement. And, from that information as well, below is my finding;
If a person has only EPF savings when he retires, the dividend gain from EPF (in terms of monthly) is about 25 – 30% of his monthly salary.
Based on the above, I strongly believe every person needs to complement EPF money with their own personal savings. And, one way to build up retirement savings is by investing in PRS.