1. The assessment of employees' provident fund savings adequacy based on hybrid scenarios using wealth-need ratio model and simulation for pre-education level.
- Author
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Johari, Sarah Nadirah Mohd, Mokhlis, Nur Hanis Mohd, Johan, Nurul Ahfiza Ahmad, Zainuddin, Nurul Anis Syafiena Ahmad, and Chan, Siti Aisyah Razali
- Subjects
LIFE expectancy ,WITHDRAWAL of funds ,SIMULATION methods & models ,PHYSICAL distribution of goods ,RETIREMENT - Abstract
The purpose of this study is to measure the retirement wealth and needs for pensioner and to simulate the accumulated retirement adequacy fund on different withdrawal scenarios. To calculate the projection of retirement wealth and need, the required variables such as starting salary, EPF dividend rate, investment dividend rate, salary incremental rate and life expectancy are tested using the Kolmogorov Smirnov test to find the best distribution by looking at the highest p value. These variables will then be simulated 10,000 times according to its chosen fitted distribution using Excel Risk Simulator. Next, the wealth-need ratio is calculated by dividing the projection retirement wealth with the projection of retirement need to obtain each person's adequacy ratio. The retirement adequacy of each case will be determined by dividing the number of households with a wealth-need ratio greater than or equal to one with 10,000. The results indicate the Scenario 1 (Housing Withdrawal), Scenario 3 (Investment Withdrawal), Scenario 4 (Investment and Housing Withdrawal), Scenario 6 (Investment and Age 50 Withdrawal), and Scenario 7 (Housing, Age 50, and Investment Withdrawal; Hybrid of Scenario 1, 2, and 3) produce the highest retirement adequacy percentage due to the withdrawal activities. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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