Projection of retirement adequacy using wealth-need ratio: A case study in Malaysia

Ros Idayuwati Alaudin, Noriszura Ismail, Zaidi Isa

Research output: Chapter in Book/Report/Conference proceedingConference contribution

4 Citations (Scopus)

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 languageEnglish
Title of host publication2nd ISM International Statistical Conference 2014, ISM 2014
Subtitle of host publicationEmpowering the Applications of Statistical and Mathematical Sciences
EditorsNor Aida Zuraimi Md Noar, Roslinazairimah Zakaria, Wan Nur Syahidah Wan Yusoff, Mohd Sham Mohamad, Mohd Rashid Ab Hamid
PublisherAmerican Institute of Physics Inc.
Pages152-159
Number of pages8
ISBN (Electronic)9780735412811
DOIs
Publication statusPublished - 1 Jan 2015
Event2nd ISM International Statistical Conference 2014: Empowering the Applications of Statistical and Mathematical Sciences, ISM 2014 - Kuantan, Pahang, Malaysia
Duration: 12 Aug 201414 Aug 2014

Publication series

NameAIP Conference Proceedings
Volume1643
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Other

Other2nd ISM International Statistical Conference 2014: Empowering the Applications of Statistical and Mathematical Sciences, ISM 2014
CountryMalaysia
CityKuantan, Pahang
Period12/8/1414/8/14

Fingerprint

retirement
Malaysia
adequacy
projection
income
finance
determinants

Keywords

  • Consumption
  • regression
  • Retirement adequacy
  • Wealth

ASJC Scopus subject areas

  • Physics and Astronomy(all)

Cite this

Alaudin, R. I., Ismail, N., & Isa, Z. (2015). Projection of retirement adequacy using wealth-need ratio: A case study in Malaysia. In N. A. Z. M. Noar, R. Zakaria, W. N. S. W. Yusoff, M. S. Mohamad, & M. R. A. Hamid (Eds.), 2nd ISM International Statistical Conference 2014, ISM 2014: Empowering the Applications of Statistical and Mathematical Sciences (pp. 152-159). (AIP Conference Proceedings; Vol. 1643). American Institute of Physics Inc.. https://doi.org/10.1063/1.4907438

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 proceedingConference contribution

Alaudin, RI, Ismail, N & Isa, Z 2015, Projection of retirement adequacy using wealth-need ratio: A case study in Malaysia. in NAZM Noar, R Zakaria, WNSW Yusoff, MS Mohamad & MRA Hamid (eds), 2nd ISM International Statistical Conference 2014, ISM 2014: Empowering the Applications of Statistical and Mathematical Sciences. AIP Conference Proceedings, vol. 1643, American Institute of Physics Inc., pp. 152-159, 2nd ISM International Statistical Conference 2014: Empowering the Applications of Statistical and Mathematical Sciences, ISM 2014, Kuantan, Pahang, Malaysia, 12/8/14. https://doi.org/10.1063/1.4907438
Alaudin RI, Ismail N, Isa Z. Projection of retirement adequacy using wealth-need ratio: A case study in Malaysia. In Noar NAZM, Zakaria R, Yusoff WNSW, Mohamad MS, Hamid MRA, editors, 2nd ISM International Statistical Conference 2014, ISM 2014: Empowering the Applications of Statistical and Mathematical Sciences. American Institute of Physics Inc. 2015. p. 152-159. (AIP Conference Proceedings). https://doi.org/10.1063/1.4907438
Alaudin, Ros Idayuwati ; Ismail, Noriszura ; Isa, Zaidi. / Projection of retirement adequacy using wealth-need ratio : A case study in Malaysia. 2nd ISM International Statistical Conference 2014, ISM 2014: Empowering the Applications of Statistical and Mathematical Sciences. editor / 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. pp. 152-159 (AIP Conference Proceedings).
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