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?


KCLau
KCLau

Personal finance author and trainer

    7 replies to "Find your Retirement Number"

    • willson

      <100k is definitely not enough to retire…need to keep working while u get some supplementary interest
      100-200k if u wanna life frugally just to survive, can consider, rent a room with 2 person and cook a dish with rice for a meal
      300k to 500k is enough to retire if u live simple life or moderately provided u have an apartment at least that is fully paid
      500k-900k is enough to retire comfortably and travel within a controlled spending
      1m -2m can retire pretty comfortable and can take care your spouse
      2m and above if u wanna travel lot, and spend a bit luxury lifestyle and taking care 1-2 person

    • willson

      there is always a good way to cut your lifestle. one use public transport or bike, or if u need a car for family opt for cheapest axia. 2nd ly make sure your house is fully paid before u retire, as such u save lot on the rental expenses. thirdly, if you are warga emas, there is always cheaper option for movie, entrance and transportation
      4thly, find a passive income earning like part time service, or youtube earning etc,
      5thly, cook at home, since u have more time in retirement, or at least buy some dishes like chap fan n cook rice at home. that save a lot, and bring your own 3 in 1 made milo and still can chit chat with frens in park for free….no need pay in restaurant. this take into account if u are single or your children has worked so u dont need to pay any of their expenses.
      another thing, is people only uses interest but u need to use up the capital including liquidating your property, and rent another apartment for etc, that can stretch another 20 yrs….

    • Dpillai

      Has your retirement number been revised in the last 10 years.

    • KCLau

      Thanks Fiona, we shall check it out.

      http://Kclau.com

    • Fiona Liao

      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!

    • Harpreet

      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.

      • KCLau

        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.

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