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EPF Strategic Planner
Comprehensive Analysis
Balanced Profile
Additional Assets (Optional)
Projection Chart
EPF
Corp PRS
Ind PRS
Cash
Decumulation
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Projected Balance
RM 0 at age 80
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Asset Accumulation (The Growth Phase)
- Compounding Frequency: Annual. All interest/returns are calculated once a year based on the opening balance of that year.
- Contribution Timing (Conservative): All contributions (EPF % deductions, PRS/Cash % deductions, and fixed monthly top-ups) are assumed to be credited at the end of the year. This means contributions do not earn interest in the year they are deposited, only in subsequent years.
- Salary Growth: Your annual income grows by the Salary Increment % every year. This directly increases the absolute dollar amount contributed to EPF, Corporate PRS, Individual PRS, and Cash Investments where the contribution is percentage-based.
- Fixed Top-ups: The "Fixed Monthly Top-up" amounts for PRS and Cash are constant nominal values and do not automatically increase with inflation or salary growth.
Retirement Income Goal
- Basis: The target annual income is based on your final projected salary at retirement age, not your current salary.
- Replacement Ratio: If you select 70%, the goal is to have enough funds to withdraw 70% of that final projected salary in your first year of retirement.
Decumulation (The Spending Phase)
- Asset Consolidation: Upon reaching retirement, EPF, Corporate PRS, Individual PRS, and Cash balances are pooled into a single retirement fund.
- Retirement Returns: The entire pool is assumed to earn the EPF Return Rate during retirement, assuming a shift to stable, capital-preservation assets.
- Spending Timing (Upfront): We assume you withdraw the full year's living expenses at the start of the year (Jan 1st). Interest is earned only on the remaining balance.
- Inflation: Expenses increase by 3% annually.
- Safety Net: The plan ensures you have money until the very end of age 80.
Understanding the Shortfall
- Required Fund: Calculated by discounting every future year's inflation-adjusted spending back to the retirement year using the EPF Return Rate.
- The Gap: The difference between this "Required Fund" and your total accumulated assets at retirement.
The income replacement ratio is the percentage of your last year pre-retirement income that you need to receive during your retirement years. In general, a 70% ~ 80% income replacement ratio allows you to maintain the pre-retirement standard of living.