Retirement income inadequacy is one of the major problems to the private sector workforce with defined contribution retirement scheme. It is believed the existing system of Employees Provident Fund (EPF) in Malaysia adopted of lump-sum payment of their retirement benefits should be replaced by annuity-based scheme which can control the total retirement funds balance of the members. Using a mathematical analysis, the comparing system of retirement benefits by EPF can be analyzed. It is clearly showed that, with annuity-based scheme provide the retirees with a steady income stream for the next 20 years after retirement age.
Department of Statistics, (2015). Current Population Estimates, Malaysia: Department of Statistics Malaysia.
Department of Statistics, (2016). Monthly Principal Statistics of Labour Force, Malaysia: Department of Statistics Malaysia.
Folk, J. Y., Beh, L. S., & Baranovich, D. L. (2012). Financial Education: Determinant of Retirement Planning in Malaysia. Journal of Business Management and Economics Vol. 3(2)., 069-078.
Ghazali, P. L., Mamat, M., Omar, L., Mohammed Foziah, N. H., Guci, D. A., Abdullah, Y., et al. (2017). Medical Integration Model of Family Takaful for Blue Collar. Far East Journal of Mathematical Sciences (FJMS) Vol.101(6), 1197 - 1205.
Ghazali, P. L., Abu Bakar, N. M., Mohd Tahir, I., Haron, M., Wan Ismail, W. Z. and Mamat, M., (2015). Optimization of Integration Model in family Takaful. Journal of Applied Mathematics Sciences, 9(39), 1899-1909.
Ibrahim, D., Isa, Z. M., & Ali, N. M. (2012). Malaysian Saving Behaviour towards Retirement Planning. International Conference on Economics Marketing and Management (pp. 102 - 105). Singapore: IPEDR.
Mazlinda, T. (2015). Tapping Private Retirement Schemes' Potential to Retain Employees. FIMMToday, pp. 11-13.
Mercer (2015). Melbourne Mercer Global Pension Index, Australian Center for Financial Studies, 80p.
Moore, K.L. (2011). An Overview of the U.S. Retirement Income Security System and the Principles and Values It Reflects, Company Labor Law & Policy Journal, 33(5): 5-48.
Poh, S.K. (2015). A Retirement Shipwreck on the Horizon? Financial Planning Association of Malaysia, 4E Journal, 2(15): 7-11.
Shafii, Z., Yusoff, Z. M., & Noh, S. M. (2013). Islamic Financial Planning & Wealth Management. Kuala Lumpur: IBFIM.
Foziah, N. H. M., Ghazali, P. L., Mamat, M., Salleh, F., & Mohamed, S. B. (2017). Mathematical Analysis of Retirement Income Benefit Based on Annuitization Approach. International Journal of Academic Research in Business and Social Sciences, 7(7), 787-792.
Copyright: © 2017 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
