Projection of retirement adequacy under wealth-needs model using simulated data

The objective of this study is to estimate the retirement wealth adequacy of future retirees under defined contribution (DC) plan in Malaysia using wealth-need model and simulation approach. Several feasible scenarios are projected, including the best case (or optimistic) and worse case (or pessimistic) scenarios, based on several related assumptions. The results show that 36% of households are projected to have adequate retirement benefits under the pessimistic scenario, while 84% of households are projected to have adequate retirement benefits under the optimistic scenario.