Constructing mathematical formula in generalizing accumulation and deaccumulation of retirement benefits.

Aging population has currently become a global phenomenon. Having a long life is great, but it could turn into a nightmare if not properly prepared, especially for the financial aspect. In fact, majority retirees in Malaysia had relied on mandatory retirement scheme organized by Employees Provident Fund (EPF), meanwhile, the funds were estimated to deplete just within 3 to 5 years after full withdrawn by the retirees. Alternatively, the EPF had provided with a less popular retirement benefit option among the members such as monthly withdrawal instead of lump-sum payment. Nevertheless, the former retirement benefit would be deemed the ideal process as an alternative to the traditional lump-sum benefit payment to the EPF retirees in securing their financial position, it somehow needs to prove its sustaining to prolong the retirement savings according to projected life expectancy of retirees. Thus, this research aims to use a mathematical approach as part of methodology in proving this matter. The research will derive a certain formula based on the withdrawal process and try to generate the result in ensuring as to whether to monthly withdrawal would be the best option for retirees to secure their financial position during retirement age. As a result, it is expected that the option of monthly withdrawal could extend the period of retirement savings from depletes all, but this does not confirm to prolong until projected life expectancy of the retirees. Therefore, another approach should be imposed or the existing system needs to be optimized in order to sustain the retirement savings as the only one financial resource to the majority of retirees. [ABSTRACT FROM AUTHOR]