How Much Is Enough For Retirement In Malaysia
Say the average lifespan is 75 years old you ll need to accumulate enough to last you for 75 55 retirement age 20 years.
How much is enough for retirement in malaysia. How many years of income do you require during retirement. Calculating how much to retire correctly and safely. Take the desired expense you have and multiply that by 1 04 the 04 refers to a 4 inflation rate to the power of the number of years of retirement.
Based on data from the malaysia department of statistics. While it is impossible to determine the actual economic landscape in the future you can predict several factors to gain a close estimate of how much you will really need to live your life. The general inflation rate in malaysia is generally manageable at 2 3 percent annually so if you don t have significant personal inflation issues like indulging expensive hobbies for instance then you can just take myr 10 000 per month multiply it by 12 months and multiply it by your life expectancy minus your current age.
Average life expectancy for a male is 72 and 77 for a female. Today assuming you already paid off your house loan car loan and your children are financially independent a monthly budget of rm2 000 would just be enough to cover the household expenses for two you and your spouse. 2500 x 1 04 25 years of retirement 13 501.
If you want to retire for 25 years with 2500 a month that will mean. So if your projected annual expenditure is rm50 000 you ll need to have rm50 000 x 20 years rm1 000 000. Retirement age cannot be too close to life expectancy.
The usual rule of thumb for budgeting to save is to save 20 of your income but this is surely not enough when it comes to preparing for your retirement fund.
