Abstract
Adequacy of retirement income is very important to maintain a comfortable living standard during retirement. Under a life cycle model, assets are mainly accumulated during an individual's work life to finance consumption after retirement. A generally accepted goal of retirement planning is to provide enough income during retirement to prevent the level of living from dropping much below the pre-retirement level. Retirement wealth can be defined as adequate if the total retirement income is equal or greater than the desired total retirement consumption (or needs). In this study, retirement adequacy is projected using the Malaysian Household Income Survey (HIS) 2009 data which is based on 5881 sample of households and contains information on income, demographic and socioeconomic status of each household. Besides the projection of retirement adequacy, a regression of the ratio of projected wealth to needs (or wealth-needs ratio) is performed to investigate the demographic and socioeconomic determinants of retirement adequacy in Malaysia. The results show that 69% of households in Malaysia are adequately prepared for retirement.
| Original language | English |
|---|---|
| Title of host publication | 2nd ISM International Statistical Conference 2014, ISM 2014 |
| Subtitle of host publication | Empowering the Applications of Statistical and Mathematical Sciences |
| Editors | Nor Aida Zuraimi Md Noar, Roslinazairimah Zakaria, Wan Nur Syahidah Wan Yusoff, Mohd Sham Mohamad, Mohd Rashid Ab Hamid |
| Publisher | American Institute of Physics Inc. |
| Pages | 152-159 |
| Number of pages | 8 |
| ISBN (Electronic) | 9780735412811 |
| DOIs | |
| Publication status | Published - 1 Jan 2015 |
| Event | 2nd ISM International Statistical Conference 2014: Empowering the Applications of Statistical and Mathematical Sciences, ISM 2014 - Kuantan, Pahang, Malaysia Duration: 12 Aug 2014 → 14 Aug 2014 |
Publication series
| Name | AIP Conference Proceedings |
|---|---|
| Volume | 1643 |
| ISSN (Print) | 0094-243X |
| ISSN (Electronic) | 1551-7616 |
Other
| Other | 2nd ISM International Statistical Conference 2014: Empowering the Applications of Statistical and Mathematical Sciences, ISM 2014 |
|---|---|
| Country | Malaysia |
| City | Kuantan, Pahang |
| Period | 12/8/14 → 14/8/14 |
Fingerprint
Keywords
- Consumption
- regression
- Retirement adequacy
- Wealth
ASJC Scopus subject areas
- Physics and Astronomy(all)
Cite this
Projection of retirement adequacy using wealth-need ratio : A case study in Malaysia. / Alaudin, Ros Idayuwati; Ismail, Noriszura; Isa, Zaidi.
2nd ISM International Statistical Conference 2014, ISM 2014: Empowering the Applications of Statistical and Mathematical Sciences. ed. / Nor Aida Zuraimi Md Noar; Roslinazairimah Zakaria; Wan Nur Syahidah Wan Yusoff; Mohd Sham Mohamad; Mohd Rashid Ab Hamid. American Institute of Physics Inc., 2015. p. 152-159 (AIP Conference Proceedings; Vol. 1643).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution
}
TY - GEN
T1 - Projection of retirement adequacy using wealth-need ratio
T2 - A case study in Malaysia
AU - Alaudin, Ros Idayuwati
AU - Ismail, Noriszura
AU - Isa, Zaidi
PY - 2015/1/1
Y1 - 2015/1/1
N2 - Adequacy of retirement income is very important to maintain a comfortable living standard during retirement. Under a life cycle model, assets are mainly accumulated during an individual's work life to finance consumption after retirement. A generally accepted goal of retirement planning is to provide enough income during retirement to prevent the level of living from dropping much below the pre-retirement level. Retirement wealth can be defined as adequate if the total retirement income is equal or greater than the desired total retirement consumption (or needs). In this study, retirement adequacy is projected using the Malaysian Household Income Survey (HIS) 2009 data which is based on 5881 sample of households and contains information on income, demographic and socioeconomic status of each household. Besides the projection of retirement adequacy, a regression of the ratio of projected wealth to needs (or wealth-needs ratio) is performed to investigate the demographic and socioeconomic determinants of retirement adequacy in Malaysia. The results show that 69% of households in Malaysia are adequately prepared for retirement.
AB - Adequacy of retirement income is very important to maintain a comfortable living standard during retirement. Under a life cycle model, assets are mainly accumulated during an individual's work life to finance consumption after retirement. A generally accepted goal of retirement planning is to provide enough income during retirement to prevent the level of living from dropping much below the pre-retirement level. Retirement wealth can be defined as adequate if the total retirement income is equal or greater than the desired total retirement consumption (or needs). In this study, retirement adequacy is projected using the Malaysian Household Income Survey (HIS) 2009 data which is based on 5881 sample of households and contains information on income, demographic and socioeconomic status of each household. Besides the projection of retirement adequacy, a regression of the ratio of projected wealth to needs (or wealth-needs ratio) is performed to investigate the demographic and socioeconomic determinants of retirement adequacy in Malaysia. The results show that 69% of households in Malaysia are adequately prepared for retirement.
KW - Consumption
KW - regression
KW - Retirement adequacy
KW - Wealth
UR - http://www.scopus.com/inward/record.url?scp=85019425452&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85019425452&partnerID=8YFLogxK
U2 - 10.1063/1.4907438
DO - 10.1063/1.4907438
M3 - Conference contribution
T3 - AIP Conference Proceedings
SP - 152
EP - 159
BT - 2nd ISM International Statistical Conference 2014, ISM 2014
A2 - Noar, Nor Aida Zuraimi Md
A2 - Zakaria, Roslinazairimah
A2 - Yusoff, Wan Nur Syahidah Wan
A2 - Mohamad, Mohd Sham
A2 - Hamid, Mohd Rashid Ab
PB - American Institute of Physics Inc.
ER -