Financial planning for retirement should begin at early stage when a person starts working, rather than waiting near retirement age and depending solely on savings in the Employees Provident Fund (EPF).

Financial planner Muhammad Hafiz Abbas said it would be better to start the planning as early as possible by buying assets such as properties in highly potential areas.

"The young people should make buying of assets in their priority list. They should begin saving for money once they start working so that they can afford to buy (one) or at least have enough savings to pay for deposit when they reach their 30s," he told Bernama here recently.

Muhamad Hafiz added the society must also be financially literate and to invest the lump sum EPF money they received upon retirement such as investing in unit trusts as offered by financial institutions.

He said many people did not do anything to their money as they were not well-versed about investing, refused or did not want to deal with procedures that they deemed to be complicated, when in fact it was meant for their future.

"Most importantly, don't be blinded upon getting the money (EPF savings) back. Many had straight away spent the money or turned it into paid up capital for business when there were many risks that needed to be taken into account.

"It is better to withdraw only 10 percent from the money and let the balance grow for returns in future. Investment is like planting a tree. Pluck the fruits but don't cut it down," he said.

Echoing the same view, Tony Khoo, 73, said he only withdrew a small portion of his EPF savings when he retired about 20 years ago and continued to live comfortably without having to worry about his daily expenditure.

"It was nice to lavish yourself a bit on things and food after retiring but after a while, you don't know what actually you want to buy. So, I go back to work as a shop assistant," he said, adding that the money he left in his EPF account served as a preparation for him should he suffered from critical illness in future.

Khoo also hoped the younger people could follow his footsteps so that they would not face financial difficulty upon retirement. -- Bernama