Podcast
Questions and Answers
What is Mr. A's target retirement fund?
What is Mr. A's target retirement fund?
How many years does Mr. A have to save for retirement?
How many years does Mr. A have to save for retirement?
What is the monthly savings needed if Mr. A starts saving at age 35?
What is the monthly savings needed if Mr. A starts saving at age 35?
What is the investment return per annum assumed in the calculation?
What is the investment return per annum assumed in the calculation?
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How much would Mr. A need to save monthly if he starts saving at age 20?
How much would Mr. A need to save monthly if he starts saving at age 20?
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At what age does Mr. A want to retire?
At what age does Mr. A want to retire?
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What is the basis for calculating the rate of gratuity and pension?
What is the basis for calculating the rate of gratuity and pension?
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What is the formula for calculating the gratuity?
What is the formula for calculating the gratuity?
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What is the formula for calculating the pension?
What is the formula for calculating the pension?
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What is the purpose of the Compulsory Retirement at the Instance of the Government Under Section 11 Act 227/239?
What is the purpose of the Compulsory Retirement at the Instance of the Government Under Section 11 Act 227/239?
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What type of pension is paid to an officer who retires due to privatization of a government agency?
What type of pension is paid to an officer who retires due to privatization of a government agency?
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What are the three types of pension benefits available to a retired officer?
What are the three types of pension benefits available to a retired officer?
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What percentage of mandatory contribution is credited to Akaun Persaraan?
What percentage of mandatory contribution is credited to Akaun Persaraan?
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At what age can members withdraw from Akaun 55?
At what age can members withdraw from Akaun 55?
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What is the purpose of self-contribution?
What is the purpose of self-contribution?
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What percentage of mandatory contribution is credited to Akaun Fleksibel?
What percentage of mandatory contribution is credited to Akaun Fleksibel?
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What is Akaun Emas?
What is Akaun Emas?
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What can be withdrawn once a member reaches 60 years old?
What can be withdrawn once a member reaches 60 years old?
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What is Akaun 55?
What is Akaun 55?
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What percentage of mandatory contribution is credited to Akaun Sejahtera?
What percentage of mandatory contribution is credited to Akaun Sejahtera?
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What is the maximum pension of a public service officer after a service of 30 years or 360 months of reckonable service?
What is the maximum pension of a public service officer after a service of 30 years or 360 months of reckonable service?
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What is the purpose of Service Circular No 4 of 1993?
What is the purpose of Service Circular No 4 of 1993?
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How is the Cash Award in lieu of Leave (GCR) calculated?
How is the Cash Award in lieu of Leave (GCR) calculated?
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What is the contribution rate of an employee to the EPF?
What is the contribution rate of an employee to the EPF?
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What is the purpose of the Employees Provident Fund (EPF)?
What is the purpose of the Employees Provident Fund (EPF)?
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What is the tax relief for contributions to the Private Retirement Scheme (PRS)?
What is the tax relief for contributions to the Private Retirement Scheme (PRS)?
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What is the contribution rate of an employer to the SOCSO?
What is the contribution rate of an employer to the SOCSO?
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What is the minimum number of years of service required to qualify for maximum pension?
What is the minimum number of years of service required to qualify for maximum pension?
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What is the main benefit of taking advantage of the time value of money?
What is the main benefit of taking advantage of the time value of money?
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What is the estimated amount of money a person will have at age 65 if they invest $300 a month from age 25 to 65?
What is the estimated amount of money a person will have at age 65 if they invest $300 a month from age 25 to 65?
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Why are private pensions (EPF) and Social Security often insufficient for retirement?
Why are private pensions (EPF) and Social Security often insufficient for retirement?
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What is one of the risks of inflation on retirement savings?
What is one of the risks of inflation on retirement savings?
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What is the first step in retirement planning?
What is the first step in retirement planning?
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What is one of the main reasons people need to plan for retirement?
What is one of the main reasons people need to plan for retirement?
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What is one of the potential uses of retirement savings?
What is one of the potential uses of retirement savings?
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What is the effect of waiting to start investing until age 35?
What is the effect of waiting to start investing until age 35?
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Study Notes
Importance of Starting Early
- It's essential to start saving for retirement early to take advantage of the time value of money.
- Delaying retirement savings can significantly reduce the amount of money saved by age 65.
Calculating Retirement Savings
- To calculate the estimated retirement savings, consider factors such as age, target retirement fund, and investment return.
- If Mr. A starts saving at age 20, he needs to save RM 625 per month to reach his target retirement fund of RM 828,000 by age 55.
Building Up Your Nest Egg
- Effective retirement planning involves setting retirement goals, estimating available sources of funds, and constructing an investment plan.
- Factors to consider when planning for retirement include daily expenses, medical costs, and settling debt.
Types of Pension Schemes
- In Malaysia, there are two main types of pension schemes: JPA (Jabatan Perkhidmatan Awam) and Private Sector (EPF).
- JPA pension schemes include Compulsory Pension, Compulsory Retirement, and Optional Retirement.
Pension Benefits
- Pension benefits under JPA include Service Pension, Service Gratuity, and Cash Award in lieu of Leave.
- The rate of gratuity and pension depends on the period of reckonable service and the last drawn salary.
Employee Provident Fund (EPF)
- EPF is a mandatory retirement savings scheme for employees in Malaysia.
- Contributions are credited according to a breakdown: Akaun Persaraan (75%), Akaun Sejahtera (15%), and Akaun Fleksibel (10%).
Mandatory Contribution
- Members who have reached 55 years old will have two accounts: Akaun 55 and Akaun Emas.
- Akaun 55 is a combination of Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel that can be withdrawn once a member reaches 55 years old.
Self-Contribution
- Self-contribution serves as an option to voluntarily grow retirement savings with EPF.
- It allows individuals to contribute more to their EPF account to increase their retirement savings.
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Description
Calculate the estimated savings needed to reach your retirement goals. Start planning early to achieve financial stability.