Knowing your intended retirement age helps you determine how many years you have left to work and enables you to estimate the length of your retirement. This is essential for calculating the amount of retirement income you will need.
At present, the minimum retirement age is set at 60. However, some may choose to retire earlier, while others may continue working beyond this age. As such, retirement planning has become increasingly important.
How long will your retirement last?
You may wonder how long your retirement will last and when you should begin preparing for it. With rising life expectancy, the average retirement period is now expected to last 20 years or more, significantly longer than in the 1950s.
An increasing life expectancy means a longer retirement period. Therefore, careful financial planning is crucial to ensure that your savings are sufficient to support you in later life. Ideally, you should begin planning for retirement as soon as you start working.
Life expectancy of Malaysians(DOSM, 2025)
Life expectancy is expected to continue rising. According to the Department of Statistics Malaysia (DOSM), a baby born in 2025 is projected to live up to 75.3 years, with female life expectancy averaging 4.8 years longer than that of males.
Planning example: How long do you have to save
Scenario: Lily starts working at the age of 25 and plans to retire at 60.
Let’s calculate how many years she has to build her savings and prepare for retirement.
What to do after deciding your retirement age?
After identifying your retirement age, the next step is to define your desired lifestyle and make the necessary preparations. This will give you a clearer picture of how much you will need for your retirement.
Consider the following factors when setting your retirement goal:
- Monthly expenses: Estimate what your current monthly expenses will look like in retirement (accounting for inflation).
- Healthcare costs: Medical expenses tend to rise with age; factor in insurance and out-of-pocket costs.
- Dependants: Do you have children, ageing parents, or a spouse who may rely on your savings?
- Other income sources: Will you have rental income, dividends, or part-time work in retirement?
Use the Retirement Goal Calculator on the KWSP i-Akaun app
If you are still unsure where to begin, the newly introduced Retirement Goal Calculator available in the KWSP i-Akaun app can help simplify your planning. This tool allows you to estimate the savings required and explore ways to achieve your retirement goals.
Start planning your retirement today
With a clearer understanding of your retirement timeline and financial needs, you are better equipped to take control of your future.
Use the Retirement Goal Calculator as a starting point, revisit it regularly, and refine your goals as your income, lifestyle, and priorities evolve.
A well-planned retirement is built over time, and the steps you take today can make all the difference in the years ahead