RM700,000 EPF Spent in 21 Days: Is Your Retirement Plan Ready for the Years Ahead?

RM700,000 may look like a lot of money. But if you have major expenses to take care of after retirement, it may not be as much as it seems.

Recently, a story about a 55-year-old individual went viral across Malaysian news media dan Threads, alleging that he had used up RM700,000 in retirement savings within 21 days. According to the Threads account, the money was used to renovate a house, purchase a car with cash and pay for the individual’s child’s wedding reception. After exhausting the EPF savings, the individual allegedly returned to work as a security guard at a supermarket to support himself financially.

But rather than asking whether the individual’s decisions were right or wrong, perhaps there is a more useful question for all of us:

“If you had a large amount of retirement savings today, how would you decide what to spend, what to keep and what you need for the years ahead?”

Retirement planning isn’t about telling you what you should or shouldn’t spend your money on. It’s about understanding your financial position and making decisions with a clear picture of what comes next.

RM700,000 Sounds Like a Lot. But What Does It Need to Cover?

One way to put RM700,000 into perspective is to look at how much it would amount to if it were spread across different retirement periods, starting at age 55:

Retirement Period	Age (starting at 55 years old)	Approx. Monthly Amount*
10	65 years old	RM 5,833
15	70 years old	RM 3,889
20	75 years old	RM 2,917
25	80 years old	RM 2,333
30	85 years old	RM 1,944

Illustration only. This does not account for investment returns, inflation, healthcare costs or other sources of income.

RM700,000 may seem like a substantial amount if it is solely used to cover your day-to-day living expenses, assuming you have no outstanding debt, house loans, family support or allowances, healthcare costs, major purchases or unexpected expenses to account for. But once these financial commitments come into the picture, the amount available for your retirement lifestyle can look very different.

That is why understanding your financial commitments and planning ahead are important before deciding how to use your retirement savings.

Your Pre-Retirement Checklist

Before reaching retirement age, ask yourself:

What to Review	Question to Ask
💰 Retirement savings	How much will I have when I retire?
📅 Retirement timeline	How long will I need my money to last?
💸 Monthly expenses	How much will I realistically need each month?
🏠 Debt	Will I still have house loans or other commitments?
🏥 Healthcare	How will I cover unexpected medical expenses?
👨‍👩‍👧 Family	How much financial support will I continue to provide?
🌴Lifestyle	What do I want to spend my retirement doing?
💼 Income	Will I have other sources of income after retirement?

There Is No “Perfect” Way to Spend Your Retirement Savings

For some, retirement may mean renovating their home or buying a new car. For others, it may mean travelling, supporting their children, paying off their debts, or simply enjoying a comfortable lifestyle.

And… That’s okay!

A major purchase may be meaningful to you. Supporting your family may be a priority. Enjoying the money you’ve worked hard for is also part of retirement. But before making a significant financial commitment, ask yourself:

“If I spend this amount today, will I still have enough for what I may need tomorrow?”

You don’t have to figure out your retirement finances alone.

Contact us for a free consultation. Our team can help you assess your current financial health, review your existing commitments such as house loans, personal loans and credit card debt, and explore possible financial solutions, including debt consolidation, based on your financial needs.

The best time to prepare for retirement is before you retire. Start today.