Saving for Your Retirement Part 1
By Chris Gan

Seven easy steps to work out how much money you need

Determining the number of years you have until retirement

The first thing you need to do is to determine how many years you have to achieve your retirement plan. In order words, how many more years until your retirement – this can be when you plan to retire (for instance, at age 45), or must retire (for example, age 55 or 56 in the civil service), less your current age.

Let’s take an example of James, who is now 31 years old and plans to retire at age 55. The number of years to his retirement would be:
Planned age to retire : 55 years
Less present age : 31 years
Equals number of years to retirement : 24 years
 
| page 1 | 2 | 3 | 4|
 
Chris Gan is a member of Financial Planning Association of Malaysia (FPAM) and executive director of S-Eleven Systems Sdn Bhd, a company involved in the development of specialised financial planning software, and the provision of independent, strategic consultancy services to the financial planning industry.