Stop guessing and start planning with a tool that fits your life. Most calculators give you a generic “target,” but our EPF (KWSP) Strategic Planner focuses on your Financial Longevity. By combining your unique health outlook, inflation expectations, and desired lifestyle, we show you exactly how long your money will last and how to make it last longer.
Why This Tool is Different?
- Immediate Fixes: If there is a “Savings Gap,” our Strategy section gives you the exact levers to close it.
- Your Custom “Retirement Paycheck”: Use our Income Replacement setting to decide exactly how much of your current salary you’ll need to live comfortably (e.g., 70% for a simple life or 100% to travel).
- Define Your Own Future: Don’t settle for fixed numbers. You control the Inflation Rate and Life Expectancy to see a realistic projection.
- Maximum Growth View: We assume you keep your EPF Account 3 (Flexible) untouched to show you the full power of compounding interest.
How to Use the EPF Strategic Planner
- Step 1: Your Current Snapshot.
- Start at the Configuration section. Enter your current Age, Annual Salary, and your total EPF Balance (add up all three of your accounts).
- Step 2: Design Your Lifestyle.
- This is where you make the tool yours. Adjust these three critical settings:
- Retirement Paycheck (Income Replacement Ratio): Decide what percentage of your income you need to live on. Pro tip: 70% is standard, but adjust higher if you plan to travel frequently.
- Inflation & Lifespan: Pick an Inflation Rate (how much prices will go up) and your Life Expectancy. The chart will instantly show you the age which your money will run out.
- This is where you make the tool yours. Adjust these three critical settings:
- Step 3: Close the Gap
- If the chart shows a red “Shortfall,” don’t panic. Go to the Strategy section and try these suggestions:
- Add a Top-up: Simulate a small monthly contribution to PRS or Cash Investments. (Under Additional Assets)
- Adjust Your Paycheck: See how a 5% or 10% change in your retirement spending can make your money last years longer. (Adjust the Income Replacement Ratio).
- Watch it Work: The chart updates in real-time so you can find the perfect balance for your future.
- If the chart shows a red “Shortfall,” don’t panic. Go to the Strategy section and try these suggestions:
Ready to see your numbers? Use the configuration sliders below to input your salary, current age, and contribution rates to generate your personalized retirement roadmap.
EPF Strategic Planner
Comprehensive Analysis
Balanced Profile
Additional Assets (Optional)
Projection Chart
EPF
Corp PRS
Ind PRS
Cash
Decumulation
Calculating...
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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.