There are 3 basic groups of retirees and they have different ways of managing their finances during retirement. The 1st group comprises those who have little savings and have difficulties making ends meet, especially with the rising cost of basic goods services. I am glad that Budget 2012 has taken their needs into consideration.
The 2nd group comprises middle class retirees who have some savings, investments or pensions to rely on. However, they have to be mindful of high inflation. The 3rd group of retirees is the super rich who do not have financial worries.
I feel blessed to be in the 2nd group. We cannot look into the future, so we are unable to see when our life on this beautiful earth will end and how much money we will need in the meantime to meet out daily expenses. All we can do is have a best estimate, based on our current needs.
A household with a monthly income below RM3,000 will be eligible for the RM500 cash assistance. This proposal is to help those low income earners or families for reducing the cost of living.
Who are eligible for the cash assistance?
The entitled household includes:
i. Married including married children and staying with parents
ii. Single parents with commitment
iii. Individual who is single and has commitment
iv. Old folks who are staying alone
Even if your married son/daughter stay with you and have their own income, you can still claim as long as your income is below RM3000.
In handling the Budget 2012, our government major challenge is how to minimise the financial burden on people effectively. At the same time, it also needs to avoid transferring the people burden to the government in order not to destroy our economy. Therefore, while introducing citizen friendly measures to minimise their burden, there must also be measures to stimulate nation economic growth.
According to a Bureau of Statistics survey, out of a sum of 5.8million Malaysian households, a staggering 60% of them have household incomes of less than RM3,000.