How a Trust Can Help You in Times of Need During Retirement

Malaysia’s mandatory retirement age is now at 60 years old. It can either be a good thing or worrying, depending on whether a proper planning has been done prior to retirement.

For most of us, the main savings for retirement would be our contributions to the Employee’s Provident Fund (EPF) or other equivalent retirement fund. But as statistics have shown, it is inadequate to maintain the quality of life we were used to before retirement.

Many would take a step further and seek advice from a Financial Planner to see how they can enhance their planning by growing their wealth through investments. With so many options available in the market, many have been blind-sided about one particular issue.

Retirement planning is more than just saving enough money to generate a passive income that covers your post-retirement living expenses and healthcare.

Regardless of how you save or how much you save; you need to think about a situation where you or your family members may not be able to access your savings. What if you are comatose or is suffering from dementia, and are not able to take care of yourself during old age? Or perhaps another pandemic like COVID-19 happens?

You may have a family to take care of, but they will need access to your savings. They would not be able to do so if they are not authorised to operate your account.

Planning for retirement is not just about making sure you have enough to live, but also about providing for contingencies that can happen.

A well-planned retirement covers planning in many aspects, from financial to healthcare arrangements to estate planning and even bereavement care. Proper planning could save your family from a lot of heartaches and financial pitfalls. Rather than just merely saving for retirement, you can further enhance your retirement planning by using a Trust.

A trust is like a water tank that you have installed in your house. Your house’s water supply come from the main pipe. Although the supply is supposed to be continuous, it is only a matter of time before a shortage can happen. This is where your water tank comes into use by continuing your water needs in such an emergency.

This is how an investment or insurance trust from Rockwills can help in your retirement planning.

This type of trust provides liquidity in times of need during your retirement. In the trust structure provided, you need not transfer the asset yet until the events that were predetermined by you happens. Such events could be Total Permanent Disability (TPD) such as being comatose for a period of time, critical illness, and mental disability.

Rockwills as your appointed Trustee will then utilise the trust funds to take care of your financial needs, such as medical expenses and even your living expenses while you are under nursing care. This is very useful especially for those whose children have migrated overseas and are no longer around to help.

In summary, you need to build a safe where you can keep piling up your life treasures; and when the need arises, your dependants are able to access it. You will then need someone who can act as your trustee with a backup key to access your funds and carry out the distribution instructions. By setting up a trust, you will be protected in case of unforeseen events and that will only mean a safer future for you and your family.

Rockwills can help you plan to ensure that your retirement planning objectives can be achieved. Established in 1995, Rockwills is the specialist in providing comprehensive Will Writing, Will Custody & Trust services. We are one of the largest estate planning groups in the region, having written more than 280,000 Wills, 12,000 Trusts and holding over RM25 billion assets under Trust.