Would you like to retire poor or rich?
How much do you need for your retirement?
Show you guys some calculation now and lets figure it out your own retirement value!
Some assumption made in these calculations:
1.The EPF contribution is 20% and will continue until retirement age
2.The post retirement expenses is 70% of your annual salary now
3.The monthly savings will continue until retirement age
4. EPF crediting rate= 4.5% p.a.
5. Investment/Saving crediting rate= 4.0% p.a.
6. Inflation = 4% p.a.
CASE 1
Name: Ahmad
Age: 24 years old
Retirement Age: 55 years old
Monthly Income: RM 2000
Yearly Income: RM 24000
Monthly Savings: RM 200
Currently EPF amount: RM 0 (Fresh-grad)
Ahmad total saving at age 55 years old will be RM 586922
This amount of money should last him until his age is 66.
In order to live comfortably until age 85, He need RM 1 million extra!
CASE 2
Name: Alvin
Age: 30 years old
Retirement Age: 55 years old
Monthly Income: RM 4000
Yearly Income: RM 48000
Monthly Savings: RM 300
Currently EPF amount: RM 38908
Alvin total saving at age 55 years old will be RM 807649
This amount of money should last him until his age is 65.
In order to live comfortably until age 85, He need another RM 1.78 million!
So guys,
What is your retirement value?
Get me out and we will calculate it together!
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