I was suppose to attend a Financial Planning Roadshow this afternoon, but just as I was about to reach my destination, I received a call from office requesting my present ASAP. The roadshow which was held by Tabung Amanah Pekerja (TAP) is the department's initiatives to educate the public on the importance of putting some money aside on top of your monthly TAP Contribution to ensure that you have enough money to live another 20 to 30 years after you retire.
It is pretty scary to hear that TAP also admit that the money you are about to receive at the end of your retirement may not be sufficent enough. I guess the monthly deduction of 5% of your salary and another 5 % contributed by your employer is the culprit in this matter. It is just to minimal to compare with our neighbours such as Singapore (CPF) and Malaysia (KWSP) which is more than 15%!
I believe TAP are trying their best to look into ways of increasing the contribution rate. However we have to be realistic here, by imposing a higher contribution rate above 5% may have a significant impact to the employers. The question here is, can they afford it?, I was informed that at the moment, TAP still have delinquent employers who are unable to pay the monthly contribution. Even at the fixed rate of 5 %, employers seems to have difficulties to pay, so what will happen if it is increase to more thatn 10%?.
I guess as long as our economy is not increasing that rapidly, we still have to be satisfied with what we have at the moment. Anyway, since we know TAP is not going to ensure our financial security in the future, we have to stop being to dependent on TAP and start looking for other options elsewhere.
It is pretty scary to hear that TAP also admit that the money you are about to receive at the end of your retirement may not be sufficent enough. I guess the monthly deduction of 5% of your salary and another 5 % contributed by your employer is the culprit in this matter. It is just to minimal to compare with our neighbours such as Singapore (CPF) and Malaysia (KWSP) which is more than 15%!
I believe TAP are trying their best to look into ways of increasing the contribution rate. However we have to be realistic here, by imposing a higher contribution rate above 5% may have a significant impact to the employers. The question here is, can they afford it?, I was informed that at the moment, TAP still have delinquent employers who are unable to pay the monthly contribution. Even at the fixed rate of 5 %, employers seems to have difficulties to pay, so what will happen if it is increase to more thatn 10%?.
I guess as long as our economy is not increasing that rapidly, we still have to be satisfied with what we have at the moment. Anyway, since we know TAP is not going to ensure our financial security in the future, we have to stop being to dependent on TAP and start looking for other options elsewhere.
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