Preprint
Article

Optimal Path for Sustainable Retirement System in Malaysia

Altmetrics

Downloads

640

Views

397

Comments

0

This version is not peer-reviewed

Submitted:

06 August 2018

Posted:

10 August 2018

You are already at the latest version

Alerts
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: 
Subject: Computer Science and Mathematics  -   Mathematics
Copyright: This open access article is published under a Creative Commons CC BY 4.0 license, which permit the free download, distribution, and reuse, provided that the author and preprint are cited in any reuse.
Prerpints.org logo

Preprints.org is a free preprint server supported by MDPI in Basel, Switzerland.

Subscribe

© 2024 MDPI (Basel, Switzerland) unless otherwise stated