Prudential just launched a new website What’s Your Number?. I found it very interactive. It is nicely constructed and I am sure you can get some retirement ideas over there.
After you select the language Chinese or English, (I wonder why is there no Malay edition?), you will be taken to a page to choose which lifestyle you desired – budget lifestyle, modest lifestyle, comfortable lifestyle and luxurious lifestyle.
The difference is the default set of estimated expenses. Budget lifestyle will shows the lowest set of value. Anyway, you can customize the number to the actual needs as you wish. Luxurious retirement default number is show in the figure below with total expenses of RM5,146/month. I don’t think that amount can support a luxurious lifestyle. To live a luxurious lifestyle in Malaysia, five figures passive monthly income will be more appropriate.
The next page will ask you to input age information.
Tahhhdahhhh! Then you get your number: RM1,235,040.
Don’t show your happiness yet. Since RM1,235,040 is really not a big figure if you have 35 years to accumulate. This retirement number is calculated without the consideration of inflation!
Keep moving on with the calculation. In the next page you will be required to fill in your current net worth information which is set aside for retirement purposes. Please don’t include your other budget for children education etc.
Next, you can set the expected rate of return and inflation. Please set the rate of return to something conservative. We can’t afford high risk investment during retirement.
Click next and you finally get your real number: RM4.8 million.
In my opinion, this is a very useful calculator. There are many other Online retirement calculators but this one is specially designed for Malaysian. Try it out here.
Why not share your real number with us in the comment section?
My real number is RM5.7 million. I definitely desire a luxurious lifestyle. How about you?
{ 4 comments… read them below or add one }
My number is 3.7 million, short of 1.1 million
just to check with you KC Lau, im 26, earning rm3400 p/m. Im paying rm460 a month for 2 insurance plans (rm200 & rm260).
is this too much? that comes up to about 16% of my take home salary. Im not married btw.
I used to feel that investing in insurance is a wise thing (and it is), but now I feel i’ve over-invested.
Hi Harpreet,
It is definitely wise to own a few insurance policy. For protection purpose, about 5-15% of our income can be allocated to pay premium. Please take note that this is only counting the policies that actually provide more on protection needs. In other words, policy such as endowment, or some type of investment-linked policy such as single premium policy or regular policy top up are considered for wealth accumulation purpose. I won’t count those in.
You are doing fine with 16%. Anyway, it depends on the type of policies you bought.
Thank you for your comments about our retirement calculator. Just to let you know that we at Prudential have re-vamped our retirement site http://www.whatsyournumber.com.my with a new look and even more user-friendly calculator. Also, we are giving away RM60,000 in cash prizes. Check it out!
Thanks Fiona, we shall check it out.
Http://Kclau.com