Is 120k enough for retirement?
I almost laugh and fell of my chair when i read a newspaper article titled Don : You don’t need RM 1 mil to retire well from the The Star.
According to an Economic Specialist Datuk Prof Ismail Mohd Salleh said RM 120k would be enough to retire comfortably.
Let see what’s the reason for his statement :-
- Spending well planned
- Aid from children
- For civil servants - Pension + Free Medical Coverage
I wonder how this fella is an Economic Specialist and also a Professor? I wonder how, I wonder why…
The average life expectancy now a days is 75. Let’s save him some face ok? We take it as 70. Meaning one have to survive on their 120k savings for the next 15 years.
Calculations :-
15 years = 180 months
180 months = RM 120000 savings
1 month = 120000/180 = RM 666.67
1 day = RM 666.67/30 = RM 22.22
So basically on average one only can spend RM 22.22 daily if they have 120k savings in their account. To be honest, how can anybody survive on RM 22.22 per day?
I guess the so called Prof neglected inflation rate, water bills, electricity bills, petrol, house rental, food and etc.
120k might be enough for now but what about 15 years down the road? So the Prof is saying all the prices of goods and utilities will stay constant the next 15 years?
Or the Prof expects those folks to confine themself at home without coming out to spend for the next 15 years?
Just say their children aid their parents, we can minus out house rental and utilities bills. But how to survive on food and other minor expenses with just RM 22.22 per day? That if that particular person lives till age of 70.
If that person lives until the age of 75 how? The average that person can spend is lesser then RM 22.22.
So what do you guys think of this Prof statement? I am totally against on what he said of 120k is enough for retirement. I am 101% affirmative on my stand. It is mission impossible to retire with 120k. What say you?
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7 Responses to “Is 120k enough for retirement?”
By lilyaklili on May 4, 2009 | Reply
is he really an economic specialist?..i don’t think so..maybe yes on the paper..
basic knowledge ..still he didn’t know..
how come 120k is enough..?..LOL
By Kampung Boy on May 5, 2009 | Reply
Yupz.. He’s an economic specialist. That’s why i laugh until i drop from my chair. Like that lilyaklili also can become Prof already! ^^
By Nadlique on May 5, 2009 | Reply
Probably that’s the difference between an academician (assuming he’s an academician through his PROF title) and a person dealing with those things in real life.
RM120k??? Geezzz…
I guess this is a case of “after you retire, you need to cut back on EVERYTHING”. Personally, it is in my view that after one retires, that’s the time to enjoy life (i.e. go on holidays, get the car you’ve always dreamed of, and etc.).
RM120k = not enough.
Let’s have a look at an example. I am now 23 years old. Say that I’ll retire at 55. That mean’s I’ve got give or take around 30 years left. Taking into account inflation, how much is RM120k worth in 30 years? In fact, even RM1 million may not be enough as well.
Even at the present moment RM120k is not enough to retire on. Yes, you can retire, but you need to maintain a very very strict lifestyle, don’t you agree? Retiring well is out of the question.
By rem on May 30, 2009 | Reply
yea,not enough.i guess he only thinks you now have 120K in 2009.you retire this year,and you will be using 120K in the next 10 years.MAYBE,he assumes you are getting 20% dividend on 120K you put in ASB..hahaha.oh plus,aid from children is RM1000/month..haiya,nowadays,ur children,in fact us,cant give so much money to our parents right?
stupid so called Economic Specialist-on the paper.he should encourage us to have more money for our retirement plan.not just ask us to sit back and relax.
obviously he neglected inflation rate, and other increasing bills etc.even if we talk about petrol price,you can see the rate for last 10 years ago is very much different.and,its not going to remain for the next 10 years..plus,he assumes,aid from children is couple of thousand ringgit per month kot.all Malaysians are so rich now..haha
By LOKE on May 30, 2009 | Reply
Everyone can be a professor but not everyone can be a very knowledgeable professor. Most of my university’s lecturers studied their Phd abroad. But I can say that most of them are lousy. Some of them don’t know how to teach. Some of them don’t know how to deliver their thoughts to students…..
By Relax on May 31, 2009 | Reply
Hmmmm…..
Here are some things you can do:
live in any country with low living standard
generate passive income from that sum of money
eat once a day
live with your parents (oppssss only for young people)
die young
By The 8th Voyager on Jun 16, 2009 | Reply
He is indeed reasonable.
Take note on the conditions, especially “for civil servants”.
After retirement, they still get passive income from the government.
Let’s say a professor earns RM15k per month, and get 50% pension, after retirement still can get RM7.5k per month.
With 7.5k monthly passive income and 120k cash in hand, sure can retire without much problem.
And u should notice his Datuk title, which shows he is in a very senior position. U can go and find out how many benefits he get from the gov before and after retirement.