Thread by @khalidkarim

Let's talk Retirement Planning.
Say ur 30 years old and will be retiring in 35 years time at 65 years.
You will have probably 22 years of "retirement" to fund.

Question: How much savings do you need to survive the 22 years of retirement?
Before the Arithmetics~have a guess.

Let's say you want an income equivalent to a current day RM1,000 per month during your retirement.
With inflation...in 35 years,when you retire RM1K today will be RM3K.And at the end of the 20 years of retirement~RM5K.

So on average u need savings of about RM1,000,000.

If you wish to retire with more money..u can just multiply the RM1mil with the desired income.
Thus...if u want to hv same lifestyle as an income of RM5K today...pls save more to accumulate an RM5,000,000 savings.

One big problem for the younger generation...is that your starting wages are much lower if adjusted for inflation.
Say if u hv a starting salary of RM1500 now...it is equivalent to RM800 in 1998.

Starting salary in 1998 is about RM1600.
Low wages...low savings rate

thestar.com.my/business/busin… this is a very bleak "current" picture.

68% of EPF members aged 54 had less than RM50K savings...and even living on poverty line can only survive for 5 years.

EPF savings alone is not enuff for retirement.Must hv other savings.

@threadreaderapp unroll pls