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. Preprints2018, 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
Ying Run, S.; Kilicman, A. Optimal Path for Sustainable Retirement System in Malaysia. Preprints2018, 2018080205. https://doi.org/10.20944/preprints201808.0205.v1
APA Style
Ying Run, S., & Kilicman, A. (2018). Optimal Path for Sustainable Retirement System in Malaysia. Preprints. https://doi.org/10.20944/preprints201808.0205.v1
Chicago/Turabian Style
Ying Run, S. and Adem Kilicman. 2018 "Optimal Path for Sustainable Retirement System in Malaysia" Preprints. 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.
