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  • Writer's pictureJessica Lee

Investing Towards Retiring

Updated: Mar 15, 2023

Spending habits are driven by individual needs and want. Without careful planning, it may soon lead to a situation where a majority of earnings will go towards settling debts.

Whilst the urge to spend arises due to year-round sales and tempting online discounts, this habit could pose a problem in the long run. According to the Employees’ Provident Fund (EPF), an average Malaysian would need between RM900,000 and RM1 million to retire comfortably. However, this would be the “bare minimum” after taking inflation and medical bills into account, among others.

These are some of the common financial problems faced by Malaysians alongside a workable solution which can curb said problems.

Lack of Savings

Many Malaysians find it difficult to save a portion of their monthly income due to commitments and lifestyle expenses. After settling those expenses, one is left with a dry bank account.

It’s challenging to save when one’s expenses outweigh their income. Having credit cards and treating them as cash sounds like a recipe for disaster as one will be making purchases that they can’t afford.

Similarly, shopping based on wants will contribute to a dent in one’s savings account. At times, being lured by a good offer may not be wise, especially when money is spent on products that will soon be left unused

Accumulation of Debt

Excessive debt could stem from a variety of reasons, one of which could be attributed to societal pressure. Humans are social creatures; thus it is common for us to feel the urge to fit in and be accepted by society. It is only normal to seek a better standard of living and hence, one will take out loans to live up and meet their expectations.

On top of that, many people do not take into account the way debt accrues over time. If one uses their credit card without making timely payments, the interest will accrue over time and settling this debt will become a financial burden.

Difficulty in Planning for Retirement

Many people fail to plan for retirement because they have insufficient funds. It’s humanlike to increase one’s spending with growth in income. Despite a boost in earnings, it can difficult to set aside enough money for retirement savings.

People often underestimate the importance of planning their retirement thinking it is too soon to do so. This may be a problem because a late start in saving may result in insufficient funds for a comfortable retirement.

Additionally, there might be an overestimation of EPF contributions received by retirees as the value of the funds deposited may not be the same over time. Public sector employees have their pensions and EPF contributions to sustain themselves throughout retirement but the same cannot be said about private sector employees.

Investing would be the solution to these issues. Through investing, one can increase savings, pay off debts and save up for their retirement.

A good way to curate one’s portfolio is to work backwards. One needs to set their investment goal by determining how much money is needed. Then, they will need to gauge their risk preference i.e. if you are a conservative, balanced or aggressive investor, and subsequently, choose investments that will help you reach your goal. 

Investing with us is made simple. Allow us to walk you through the process so that you can maximize your returns whilst empowering the local economy.

How can Capsphere help you?

Capsphere provides investors with high returns on their investments (9% returns per annum) while enabling SMEs to grow by providing accessible financing. In addition to receiving monthly payments, you will be contributing to the local economy by helping local businesses in need. Investors interested in making an impactful and sustainable investment are encouraged to invest in our ESG notes as they generate financial returns while committing to a good cause.

How does Capsphere investment work?

Investors can opt to invest in either Conventional and/or Shariah-compliant investment notes. Lower risk is faced when investing in our notes as our investments are asset-backed via collaterals. Upon investing, one will receive their invested amount and returns over a set period.

How to start investing with Capsphere?


1. Register

Register an account with us and deposit RM200 to begin investing.

2. Invest

Start investing with a minimum of RM 50, or up to RM 10,000 for each investment note.

3. Reinvest 

Grow your wealth by reinvesting your returns. How? For example, by investing RM 6,000 a year on an initial investment of RM5,000 with an average of 10% returns p.a., you would earn a total of RM1,118,947 by 30 years. You can refer to the illustration below for a better understanding of how this works.

For illustration purposes only Have a different number in mind? Why not try our simulation here!

4. Performance Review / Goal Setting

Assess the performance of investments i.e. in terms of returns, and continue reinvesting until you reach your investment goal or attain financial freedom.

In addition to investing with us, head over to our partners' siteto find out more about how to build, manage, protect, and distribute your wealth. IPP Wealth Planners are certified experts that advise and guide many of our customers on how to build and manage their wealth. One can request a financial consultant by filling up their details simply by filling up a form and IPP Wealth Planners will cater a comprehensive financial plan based on theirs's preferences and needs.

We hope this article serves as a good starting point for one to enhance or avoid potential financial problems. Forming sustainable financial habits and getting rid of the bad ones will have a positive effect on every aspect of your life.

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