Diversify investments for higher retirement savings

Generally, the effect of inflation is not felt while they are working as it is cushioned by their salary increment, even if it is not much.

Mohd Basri Basir, 33, said he has invested in gold as the price is more stable.

"It is preparation for my retirement, an assurance for my family's future.

"Since my retirement saving is not much, my wife and I have to plan well so that we will not regret later," said the assistant administrative officer at Universiti Malaysia Perlis (UniMAP) when interviewed by Bernama.

Mohd Basri opined that gold is like an insurance as the commodity is not affected much by inflation, compared with keeping currency notes.

He said inflation is an economic situation when life becomes difficult due to continuous increase in the price of daily essential goods or services, while there is no increase in income.

"Money will depreciates in value by inflation and the purchasing power of buyers will be reduced. Because of that, I opt to invest in gold," he added.

Mohd Basri said during a span of six years, and with prudent spending, he and wife, Nurfarina Amron, 32, had bought several gold bars and coins.

The couple has a two-year-old daughter.

He said since the birth of his daughter, he had made a point to purchase a gram of gold every month for her education,.

"Savings in money or gold can be used during emergency," he added.

Mohd Basri said among his responsibilities after he got married was to provide a comfortable house for his family and to provide for his children's education.

He said part of his gold investment would be used for down-payment on a house, costing about RM300,000, he was planning to get in another two years.

"I take a long time so that I can minimise the housing loan because I do not want to be burdened with huge debts," he added.

He said it was not easy to keep to his financial planning, but it has to be done for the future of his family.