Based on case study above, criticize on Peter and Karen's retirement planning. (15 marks)

Peter and Karen Parker, who live in Ipoh, Perak have four married children and a total of six grandchildren. Their daughter and one of their sons live within a two-hour drive of Peter and Karen, while two other sons live in Singapore. Karen works as a nurse in the local hospital, earning around RM43,200 per annum. She is considering to retire from work in next year when reaching age 60. She has no worry on financial matter as she will receive gratuity and monthly pension after retired. She would like to spend more time at home with her husband and play with her grandchildren. Peter does repair and maintenance work for local residents and sometimes contract work with a local builder. In average, he earns RM35,000 for the contract work and keeps the personal work off the books', but estimates he earns RM15,000 a year from this work. When Karen quits her job, Peter will stop doing the contract work and will only do the repair and maintenance work as his part time job. He is now at age 63 and is looking forward to travel when Karen retires. They only have one saving account that amounted RM20,000. They just started their saving over the last 10 years because their financial condition were stable during that period. They have a single storey terrace house in Selangor that has been paid off. They rent it out for RM350 a month. Their two cars (five and ten years old) are fully insured. Karen has life, health and disability insurance while Peter has no life insurance. They usually pay off their credit cards monthly. They believe that most of their expenses will be reduced after Karen retired. When discussing other expenses, they estimated that they will spend the following: Descriptions Food Petrol Electricity and water Telephone bills Housing loan Car loan Astro Road-tax, insurance and repairs Entertainment and vacations RM Period 160 Weekly 50 Weekly 220 Monthly 150 Monthly 1100 Monthly 900 Monthly 150 Monthly 2,000 Yearly 10,000 Yearly Peter and Karen Parker, who live in Ipoh, Perak have four married children and a total of six grandchildren. Their daughter and one of their sons live within a two-hour drive of Peter and Karen, while two other sons live in Singapore. Karen works as a nurse in the local hospital, earning around RM43,200 per annum. She is considering to retire from work in next year when reaching age 60. She has no worry on financial matter as she will receive gratuity and monthly pension after retired. She would like to spend more time at home with her husband and play with her grandchildren. Peter does repair and maintenance work for local residents and sometimes contract work with a local builder. In average, he earns RM35,000 for the contract work and keeps the personal work off the books', but estimates he earns RM15,000 a year from this work. When Karen quits her job, Peter will stop doing the contract work and will only do the repair and maintenance work as his part time job. He is now at age 63 and is looking forward to travel when Karen retires. They only have one saving account that amounted RM20,000. They just started their saving over the last 10 years because their financial condition were stable during that period. They have a single storey terrace house in Selangor that has been paid off. They rent it out for RM350 a month. Their two cars (five and ten years old) are fully insured. Karen has life, health and disability insurance while Peter has no life insurance. They usually pay off their credit cards monthly. They believe that most of their expenses will be reduced after Karen retired. When discussing other expenses, they estimated that they will spend the following: Descriptions Food Petrol Electricity and water Telephone bills Housing loan Car loan Astro Road-tax, insurance and repairs Entertainment and vacations RM Period 160 Weekly 50 Weekly 220 Monthly 150 Monthly 1100 Monthly 900 Monthly 150 Monthly 2,000 Yearly 10,000 Yearly