This article on The Star Online today provides a good guidelines on retirement mistakes to avoid. Some thoughts after reading this article:
1) Plan early and take advantage of 'The power of compounding interest'. The earlier you start your retirement savings, the longer duration you will have and the bigger your retirement fund will grow.
2) Do not rely on EPF@KWSP alone for your retirement planning. Do additional retirement saving such as Private Retirement Scheme (PRS) or have additional investment with unit trust companies.
3) Take consideration of the effect of inflation in your retirement planning. If you think you need RM3000/month and to retire in 10 years, then you might actually need RM5000/month to retire by taking consideration of 6% inflation yearly.
4) Have a good medical coverage and purchase the policy as early as possible. As we age, the needs for medical care increase. A good medical coverage will greatly lessen the financial burden.
5) Learn to take risk to grow your nest egg. Ensure a portion of your nest egg is under high income generating portfolio.