# How much money do you need to retire at 60 in Malaysia?

EPF’s Belanjawanku expenditure guide estimates that an elderly couple living in the Klang Valley (in 2019) will need RM3,090 a month to achieve a reasonable standard of living.

Life expectancy of Malaysians aged 60 is 78.4 years for males and 81.2 years for females. (Source: Department of Statistics Malaysia 2020)

## Example 1

If X retire now at age 60, X will need at least RM572,460 in savings to cover RM3,090 in monthly expenses for X and spouse for 20 years until age 80.

*(Assuming 6% rate of return per annum, 3% inflation rate per annum)*

## Example 2

If Y (age 30) is going to retire 30 years later at age 60, monthly expenses is estimated to be inflated to RM7,500. Y will need at least RM1,389,470 to cover expenses for Y and spouse from age 60 until age 80.

If Y currently have zero savings, Y will need to save RM1,382 per month.

If Y currently have RM70,000 in savings, Y will need to save RM982 per month.

*(Assuming 6% rate of return per annum, 3% inflation rate per annum, EPF Basic Savings Amount for age 30 is RM35,000)*

## Table 1

Monthly Expenses and the Retirement Funds Required for 20 years period and 30 years period respectively.

Monthly Expenses | 20 years | 30 years |
---|---|---|

1,000 | 185,260 | 244,890 |

3,000 | 555,790 | 734,670 |

5,000 | 926,320 | 1,224,450 |

8,000 | 1,482,100 | 1,959,120 |

10,000 | 1,852,630 | 2,448,900 |

*(Assuming 6% rate of return per annum, 3% inflation rate per annum)*