Retirement days can be difficult if you don’t make sound retirement saving plan. It is difficult to determine how much you might need to take you through your retirement period and that’s why you need a tool to help you work towards achieving retirement that is secure. This OCBC Malaysia retirement plan calculator will help you create a security plan for your retirement.
When do you retire?
The time when an individual withdraws from the active life of working is known as retirement. Some individuals chose to withdraw completely while others reduce the intensity of work. There are many reasons for retirement such as age, health issues, and personal decisions. Either way, income goes down during retirement. Therefore, it’s important for everyone to consider their retirement plans by ensuring they are able financially to retire. In as much as it is possible to leave work and go for your retirement with one source of income which is social security, it’s not always a bad idea. This is because of factors such as low income or no income at all. In order to live comfortably after retirement, you need to have a sound retirement saving plan.
The Malaysia retirement plan calculator will allow you to do various activities in your saving plan. Use it to view your savings balance, calculate withdraws you make every year and also calculate the social security depending on your income. The retirement plan calculator uses specific data to calculate your retirement savings. These include your current age, the age at which you plan to retire, the time you wish your retirement savings to last, the amount you expect to spend after you retire, monthly expenses including utility bills, transport, clothing and food and then the yearly expenses-(one-time) such as appliances, holiday trips and others. With this information, the calculator will be able to help you draw your retirement plan.
What you should know before using this calculator
The calculator is not meant to provide you with accurate figures but it’s only for the purpose of illustration only. The results it provides are not intended to give you accurate investment results or give actual investment advice. The financial position that you are in and financial goals that you have are subject to change and therefore you might go back to the calculator yearly at least once. Whenever you get the results, ensure that you always discuss them with your personal financial advisor.
What the calculator doesn’t take into account
There are some factors that the retirement plan does not take into account such as the
- earlier withdrawal penalties
- holding periods
- minimum distributions required
Therefore, doing regular investments does not warrant profit either does it provides protection against loses. The fluctuating market conditions may affect your profits. What the calculator does is that it compounds your earnings annually and makes an assumption that withdrawals occur only at the beginning of every year. Therefore this tool is meant to provide you with an estimation of your retirement saving plan. OCBC Malaysia retirement plan calculator does not guarantee you the accuracy of whatever results you get or their significance to the specific financial circumstances.