How much money do you need to retire well? Is it 500k or a million ringgit? Take a look at below report ‘The State of Households 2018’ by Khazanah Research Institute.

It shows that;

a) the average of household expenditure in 2016 was RM 4033 and

b) the mean household expenditure has grown at the rate of 5.6% per year

Household expenditure means the amount of monthly consumption or expense made by resident households to meet their everyday needs, such as: food, clothing, housing utilities, energy, transport, durable goods (eg. car maintenance), health costs, leisure, and miscellaneous services.

Thanks to Khazanah report, now we can predict or plan how much that we need at least to cover for necessity requirement (take note that this doesn’t cover lifestyle such as travelling, new car etc). Ideally the yearly withdrawal should be about 8% of your total savings. If you put your savings at an institution that generate 6 -7% annual returns, then your money is enough to sustain throughout your retirement (perhaps may last more than 20 years though).

Table above gives an indication of how much money that you need if you plan to retire as of that year. So take a look at your total savings (including epf, fd, asb & tabung haji) and see if your savings is on the right track.

What to do if you want to improve your savings? 

If you have 5 – 7 years, it is never too late to start savings/investing at the right place. Some good funds which give 9-10% returns, eventually will double your capital in 7-8 years. But say NO to ‘skim cepat kaya’ ya.

Wish you to plan well so that you can enjoy life.

#planwell #believeinyourself

Recommend0 recommendationsPublished in Malaysia

Previous article8 mẹo hay để cùng-yêu-cùng-kinh doanh chung
Next articleHow She Found Faith, Passion and Success Through Personal Financial Planning
@
The New Savvy Contributors: Posts are by our contributors. Views, thoughts, and opinions expressed in the articles are written and contributed by the contributors. They belong to the contributor or organisation that have so kindly written it. They do not belong to The New Savvy. --- Due to a technical misstep on our part, some articles have been wrongly attributed to the wrong contributors. We sincerely apologize for this. We would like to request your assistance to resolve this matter. If you contributed articles to us in the past, can you write to [email protected] with your name and articles? We would then work as swiftly as possible to reattribute the articles to the rightful owners.   ----- The New Savvy makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses injuries, or damages arising from its display or use. All information is provided on an as-is basis. It is the reader’s responsibility to verify their own facts. The facts and numbers are made to be as accurate as possible, especially at the time of publication. Please note that these are always subject to change, revision, and rethinking at any time. Please do not hold The New Savvy responsible for any updates or changes. The authors and The New Savvy are not to be held responsible for the misuse, reuse, recycled and cited and/or uncited copies of content within this blog by others.

LEAVE A REPLY

Please enter your comment!
Please enter your name here