How Much Do I Need to Save for Retirement?


Planning for retirement is a crucial financial milestone that requires careful consideration and preparation. One of the first steps in this journey is determining how much money you need to comfortably retire. 

According to Maybank, the average life expectancy of Malaysians is 74.9 years. So if you retire at the age of 60, you may live for another 15 years. You would need to financially plan for those years, as well as take into account the cost of inflation, which could increase your expenses far more than you have budgeted for.

Saving for retirement is a critical financial goal, and it's essential to have a plan in place to ensure you have enough funds to maintain your desired lifestyle after retirement.

While there are no one-size-fits-all answers to how much you should save for retirement, the age-based retirement savings can provide a rough guideline. These factors are designed to help you estimate how much you should aim to have saved by specific ages to achieve a comfortable retirement.

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How Much Do I Need to Save for Retirement?

Here are some age-based retirement savings factors that can serve as goalposts:
  • By Age 30: Aim to have saved the equivalent of your annual salary. This is a good starting point to ensure you're on the right track.

  • By Age 40: Try to have three times your annual salary saved for retirement. This should provide a more solid foundation for your retirement savings.

  • By Age 50: Aim to have six times your annual salary saved. This is when you should be making significant strides in your retirement savings efforts.

  • By Age 60: Target to have eight times your annual salary saved. At this point, retirement should be approaching, and you need a substantial nest egg to support your retirement lifestyle.

  • By Age 67 (Full Retirement Age for Social Security): Aim to have ten times your annual salary saved. This milestone is crucial as it may be the time you retire and begin drawing on your retirement savings.

Remember that these are general guidelines, and your individual circumstances may vary. 

Think about when you want to stop working and enjoy your retirement. That decision can affect how much money you need to save and when you hit certain financial milestones.

As stated in Fedility, the longer you can postpone retirement, the lower your savings factor can be. That's because delaying gives your savings a longer time to grow, you'll have fewer years in retirement, and your Social Security benefit will be higher.

Let me give you some examples to make it clearer. 

There are three people: Max, Amy, and John. 
  • Max plans to work until he's 70, so he only needs to save 8 times his last salary to live comfortably in retirement. 
  • Amy wants to retire at 67, so she has to save 10 times her last salary. 
  • Finally, John wants to retire at 65, so he has to save at least 12 times his last salary.
But keep in mind, sometimes you can't choose when you retire because your health or job situation might force you to stop working earlier. 

The main point is, if you can keep working a bit longer, it can be easier to reach your savings goals for retirement. : Retirement Savings Calculator

Fortunately, with the help of a retirement savings calculator, you can gain valuable insights into your retirement savings goals. In this article, we'll explore the importance of such a calculator and how it can assist you in planning for your retirement.

Why Use a Retirement Savings Calculator?

A retirement savings calculator provides a customized assessment of your retirement needs. It factors in variables like your age, current savings, expected retirement age, life expectancy, and desired retirement lifestyle.

Moreover, calculating your retirement needs can provide clarity on your financial situation. You'll gain insights into whether you are on track to meet your goals or if you need to adjust your savings strategy.

Furthermore, knowing how much you need to retire helps you set realistic financial goals. This ensures you stay motivated and focused on achieving your retirement objectives.

On top of that, planning for retirement without a clear savings goal can lead to financial insecurity in your golden years. A calculator helps you mitigate this risk by giving you a target to work towards.


In conclusion, a retirement savings calculator is a powerful tool that can help you determine how much you need to retire comfortably. 

It provides financial clarity, helps you set goals, and mitigates the risks associated with insufficient retirement savings. 

Start planning for your retirement today by using a reliable retirement savings calculator to secure your financial future.

Sii Nurul

Fulltime sabahan blogger since 2015 who love to write and sharing in her blog. Married with Mohamad Syafrie

2 Ulasan

Terima kasih kerana singgah ke Blog Sii Nurul. Jika ada sebarang pertanyaan, komen, penambahbaikan, cadangan mahupun pandangan. Boleh tinggalkan jejak anda.

  1. kena take serius perkara mcnie walaupun kita rasa jauh lagi perjalanan tu..
    kalau tak mula kan dari muda, susah...

  2. Kemarin itu ada mortgage calculator, Skr ada retirement calculator pula 😍. Saya lebih tertarik yg ini, karena memang kalo rumah dah ada, jadi tak teringin nak hitung2an biaya 😄

    Tapi retirement memang perlu sangat disiapkan. Karena saya tak nak setelah resign jadi beban anak2. Inginnya tetep bisa punya income sendiri. Makanya saya rutin investasi di saham, emas batangan dan juga side hustle dari renting my apartmen dan some properties. Harap2 bisa jadi passive income di masa tua

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