How much do you need for retirement?

Retirement saving is about devising a plan that meets your financial needs.

THERE are many retirement calculators online that can help you estimate your retirement “number”, which is how much money you need to support yourself after you retire. For this article, StarMag used a calculator found at www2.listen.com.my/calculator_/index.html.  With this calculator, you will be asked to enter information for the following questions:

·Your expected retirement age, and how many estimated years of retirement spending?

·Your chosen lifestyle and expected monthly expenses (basic, modest, comfortable or indulgent)?

·Details of your expected monthly expenses upon retirement (food, transport, clothing, medical, travel and entertainment, housing, and other expenses). Consider how each of these will be different at retirement age, eg your risk factors for diseases, or whether you will travel more?

·Your existing resources for retirement, including EPF, unit trust, property, fixed deposit, and other assets?

Based on projections, such as returns and inflation rates, you will get a rough estimate of how much you will need when you retire, and whether your existing resources match this number. Remember, this is only an estimate, as there are many financial factors beyond your control. This number may change if your lifestyle or circumstances alter, for instance if you have more dependants, or experience a drastic change in income.

Credit : The Star Online

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