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 How to calculate one's retirement needs?

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Lucas0323
post Apr 13 2021, 08:12 PM

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If the money good enough take it. Cash is king for current situation.
Human Nature
post Apr 13 2021, 08:27 PM

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I would take it and settle for another role in the engineering field, even one that cannot match the current pay.

This post has been edited by Human Nature: Apr 13 2021, 08:27 PM
Amethyst303
post Apr 13 2021, 08:43 PM

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I do agree 45 is a bit too young to retire, plus you will want to be using your brain for the next 25 years at least.

Are you able to negotiate a consultant role (pay by project) with this same company while you are waiting for the 5 year term to expire? Or simply negotiate the term shorter.

Maybe plan for these 5 years first. Also, take it as an opportunity to rethink what you would like to do for the rest of your working life. Is your experience perhaps something you could bring to the education world? Or as a trainer? Is there something you could do to leverage on the 24 years experience to find something more flexible, to your terms, and yet not breach the agreement?

Good luck! Hope you enjoy semi-retirement smile.gif
SUStikaram
post Apr 13 2021, 09:14 PM

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No harm retired at 45

Do consider sometime you lucky where u can get AA or Genting share cheap. You can spoil yourself by upgrade here and there.

This post has been edited by tikaram: Apr 13 2021, 09:21 PM
SUSDezs
post Apr 13 2021, 10:23 PM

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QUOTE(Bjorn1688 @ Apr 13 2021, 03:29 PM)
I'm raising the issue on how does one go about calculating what would our retirement needs be.

I'm now 45 and worked for the same company for 24 years cumulatively.

In a recent strategic review the position I'm currently doing is being axed and I've been offered a mutual separation scheme of 1.25 months for every year of service. My feel on this is this isn't something I should say no to as I'm doubtful to ever getting my hands on such a large lump sum payment.

I do an engineering position that is very niche and 2 companies dominate 85% of the market while the rest isn't worth mentioning. If I do take that separation scheme there is a clause that prohibits working for the other company for 5 years.

I'm doubtful if I take this scheme that I could get back into a similar role or an engineering field that pays similarly. Also quite possibly it'd be tough due to age to switch careers or industries.

I've been offered a different role but not too keen on it as it involves moving to a country I'd rather not relocate there.

How much would be required to retire comfortably in Malaysia assuming our place of residence is fully paid off.
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Basically its based on your own living costs and lifestyle. Your assets need to generate enough to cover that passively to be truly safe, but assuming you will not be going senile and doing nothing entirely, you can offset it a little. I'm using a conservative 4% return on assets to mark my target for retirement. Of course, i will be doing some sort of shiet till I hit the grave or go retarded, so my aim is only to cover 75% of my living expenses, which is also quite frugal.
e.g. 36K a year @ 4% return = 900K assets generating income minimum. Now 30's I'm more than halfway through, and I'm willing to live as low as 1.5K a month (currently surviving at 1k just for myself only la, extras need to be factored in i.e. kids and siham), so i dun give too much concern over pushing savings too much now. If things don't go to shiet, by 40-45 I can probably switch to any job/startup i want without too much concern over basic income and lim kopi to the grave.

Offset a bit more for inflation and be prepared that Marehsia might go to shithole so you will need a parachute plan B in case.
idoblu
post Apr 13 2021, 10:31 PM

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This post has been edited by idoblu: Apr 18 2021, 03:36 PM
chickenshit36
post Apr 13 2021, 10:38 PM

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QUOTE(Bjorn1688 @ Apr 13 2021, 03:29 PM)
I'm raising the issue on how does one go about calculating what would our retirement needs be.

I'm now 45 and worked for the same company for 24 years cumulatively.

In a recent strategic review the position I'm currently doing is being axed and I've been offered a mutual separation scheme of 1.25 months for every year of service. My feel on this is this isn't something I should say no to as I'm doubtful to ever getting my hands on such a large lump sum payment.

I do an engineering position that is very niche and 2 companies dominate 85% of the market while the rest isn't worth mentioning. If I do take that separation scheme there is a clause that prohibits working for the other company for 5 years.

I'm doubtful if I take this scheme that I could get back into a similar role or an engineering field that pays similarly. Also quite possibly it'd be tough due to age to switch careers or industries.

I've been offered a different role but not too keen on it as it involves moving to a country I'd rather not relocate there.

How much would be required to retire comfortably in Malaysia assuming our place of residence is fully paid off.
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Bro. Take the money. Under labor law they cannot restrict you from working with competitor. Google it.
chickenshit36
post Apr 13 2021, 10:40 PM

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QUOTE(v1n0d @ Apr 13 2021, 04:24 PM)
A multiplier of 1.25x isn’t too bad, but you have to take into account deductions as your payout is still subject to tax. The 5-year non compete is a bit odd though.
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Not too bad. There is tax exemption of 10k per year of completed service when retrenched iinm
erizdagreat
post Apr 13 2021, 11:17 PM

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I retired at 35, so I think 45 isn't too early to retire. It all depends on the individual.

When calculating how much you need, also take into account any yearly earnings you might get from interests, dividends, or gains on investing that might come from the money you get from VSS. Money invested well will go a long way to making sure you stay retired without worry
ukauka2020
post Apr 13 2021, 11:37 PM

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QUOTE(erizdagreat @ Apr 13 2021, 11:17 PM)
I retired at 35, so I think 45 isn't too early to retire. It all depends on the individual.

When calculating how much you need, also take into account any yearly earnings you might get from interests, dividends, or gains on investing that might come from the money you get from VSS. Money invested well will go a long way to making sure you stay retired without worry
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then everyday do what
Ginny88
post Apr 14 2021, 10:05 AM

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Take the money and join the competitor. Under the law any contract to restrain you from working for someone else is null and void. Some companies put in unenforceable clauses due to ignorance or hoping for ignorance from the person signing. Knowledge is power.

gobiomani
post Apr 14 2021, 10:42 AM

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QUOTE(Bjorn1688 @ Apr 13 2021, 03:29 PM)
I'm raising the issue on how does one go about calculating what would our retirement needs be.

I'm now 45 and worked for the same company for 24 years cumulatively.

In a recent strategic review the position I'm currently doing is being axed and I've been offered a mutual separation scheme of 1.25 months for every year of service. My feel on this is this isn't something I should say no to as I'm doubtful to ever getting my hands on such a large lump sum payment.

I do an engineering position that is very niche and 2 companies dominate 85% of the market while the rest isn't worth mentioning. If I do take that separation scheme there is a clause that prohibits working for the other company for 5 years.

I'm doubtful if I take this scheme that I could get back into a similar role or an engineering field that pays similarly. Also quite possibly it'd be tough due to age to switch careers or industries.

I've been offered a different role but not too keen on it as it involves moving to a country I'd rather not relocate there.

How much would be required to retire comfortably in Malaysia assuming our place of residence is fully paid off.
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Not sure if someone has already brought this up, but a clause that restricts someone from a livelihood (in this case 5 years cannot join a particular company) is illegal and cannot be enforced and especially so since this is the only other similar company in the industry. So just take the money, sign the agreement and join the competitor if you can. Dare them to take you to court which I am very sure they will not do as it will be a waste of time and effort for them. You should check and confirm this with a lawyer for your peace of mind (rather than just trust someone's posting in LYN). Best of luck.
cucumber
post Apr 14 2021, 11:21 AM

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Usually there's a cap, 1 to 1.5 years of your currently salary with MSS regardless of how many years you've worked. I guess it's negotiable depending on your level. If you can really get compensated for all the 24 years that's considered very good.

Good amount to retire would depend on your expenses, but typically it would be in rm2 to 2.5 mil range if you're managing & investing the money well.

There are retirement calculators online you can refer to https://www.ocbc.com.my/personal-banking/li...nner/index.html

This post has been edited by cucumber: Apr 14 2021, 11:24 AM
Cookie101
post Apr 14 2021, 11:42 AM

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depends on ones need ultimately...

but if you work out expenses of 2k a month then a mere 1.5m is more than enough to retire comfortably already. They are pretty healthy and move around easily so not much concern at all with health bills etc.

Been living with a few retired neighbours who eats out regularly at kopitiam and YOLO occasionally only needs 2k for both of them while one needs a bit more around 3k. so pretty much more than enough for >1.5m to retire comfortably already.

following /ktard standard, day day hotel buffet and YOLO probably needs 10k a month at least LEL
Chrono-Trigger
post Apr 14 2021, 06:41 PM

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not to forget if your parents would leave anything behind for you. For example, any land or landed property would be a great store of value that would hedge against inflation. by the time your money is finished, you can always sell of the property in future to fund your old days.

But retiring at 45 is just too young, unless you have things to do.
Chrono-Trigger
post Apr 14 2021, 06:42 PM

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sigh, similarly, i also not sure exactly how much one needs for retirement...

properties overhang also hard to sell and predict..

This post has been edited by Chrono-Trigger: Apr 14 2021, 06:52 PM
SUSNew Klang
post Dec 28 2021, 10:39 AM

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Mr.Robert
post Dec 28 2021, 10:55 AM

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QUOTE(tikaram @ Apr 13 2021, 09:14 PM)
No harm retired at 45

Do consider sometime you lucky where u can get AA or Genting share cheap.  You can spoil yourself by upgrade here and there.
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Yea, if have pocket money from 3 children who earn RMB, euro like tikaram, no harm can retire at 45.

The young one have blood-debt need to pay off. whistling.gif
toiletwater
post Dec 28 2021, 11:02 AM

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I listened to a non-compete clause episode on NPR. Apparently most employers include it because other employers include it.

It's generally known as being unenforceable. Don't go stealing their big clients / big secrets and its all good.
mushigen
post Dec 28 2021, 11:17 AM

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QUOTE(toiletwater @ Dec 28 2021, 11:02 AM)
I listened to a non-compete clause episode on NPR. Apparently most employers include it because other employers include it.

It's generally known as being unenforceable. Don't go stealing their big clients / big secrets and its all good.
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But isn't 5 years a little too long?

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