We apply a 70% replacement ratio for post-retirement spending as market consensus believes most people need approximately 70% of their current spending to maintain reasonable post-retirement living standards. Therefore, in this retirement calculator, “Monthly income required at retirement” equals to 70% of the “Current monthly expenses” regardless of inflation impact. “Current monthly expenses” is also used for calculating “Total required at retirement”, but not used for calculating “Total available at retirement”.
This handy calculator helps employers calculate MPF contributions for their regular employees and prepare remittance statements for submission to BCT.