Article
Version 1
Preserved in Portico This version is not peer-reviewed
Optimal Path for Sustainable Retirement System in Malaysia
Version 1
: Received: 6 August 2018 / Approved: 10 August 2018 / Online: 10 August 2018 (13:03:40 CEST)
How to cite: Ying Run, S.; Kilicman, A. Optimal Path for Sustainable Retirement System in Malaysia. Preprints 2018, 2018080205. https://doi.org/10.20944/preprints201808.0205.v1 Ying Run, S.; Kilicman, A. Optimal Path for Sustainable Retirement System in Malaysia. Preprints 2018, 2018080205. https://doi.org/10.20944/preprints201808.0205.v1
Abstract
This research aims to analyse the sustainability of retirement system and relevant optimal path to achieve sustainable post-retirement livings in Malaysia context. Focus of this study is put on Employees Provident Fund (EPF) which is mainly constituted by employees from private sector. EPF is a fully funded defined-contribution by both employees and employers. In this research, main variables used are contribution rate and retirement age based on relevant indexation of pension. For a sustainable retirement living, retirement benefits are expected to be in a maximisation function. Attempts to find sustainable retirement fund are via step-by-step mathematical calculation using formulas in Microsoft Excel and verification of the result with Excel Solver via Generalised Reduced Gradient (GRG) algorithm. Eventually, two-third retirement decision model is used to justify the sustainability of retirement fund other than justification using monthly household expenditure.
Keywords
Sustainable; defined-contribution; optimisation; present value; future value
Subject
Computer Science and Mathematics, Mathematics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Comments (0)
We encourage comments and feedback from a broad range of readers. See criteria for comments and our Diversity statement.
Leave a public commentSend a private comment to the author(s)
* All users must log in before leaving a comment