According to a worldwide survey conducted by HSBC in Malaysia:
· 49 % of those between the age group of 30 to 39 are without any short term savings
It means they do not have emergency funds to cope with unemployment or meet unexpected cash outlay such as major medical expenses. It is essential to save for a rainy day so that you can carry on living without hardship.
· 48% of parents are without insurance
These parents are not prepared to meet uncertainties in life. In the event of an accident or a critical illness, you are disabled and cannot go on working, who on earth is going to compensate you for the loss of your potential earning power? Be adequately covered by insurance so that you and your family are protected financially when you are temporarily or permanently disabled.
· 28% of those between the ages of 50 to 59 are without a retirement fund
Retirement means you stop working and there will be no recurring income every month. You have to rely on what you have saved throughout your working life. If such a fund is not available, who is going to support you? There is no guarantee that your children are able to adequately support you financially during your old age. In the survey, 19% of the respondents want to live with their children and family when they retire. Among the 17 countries surveyed India top the list with 32% and Malaysia is in 5th place and the UK is at the end of the list with 3%.
· 85% of those who have retired are without wills
To live effectively is to prepare and plan ahead. Likewise, it is also necessary to prepare for your departure from this world. To draw up a will is to allocate your wealth according to your wishes to those you love dearly. It is a hassle-free way to allow those close to you to inherit your fortune.
Are you one of them? Manage your personal finance wisely to avoid getting into debt and financial difficulties.
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