Retirement in mind!

Yesterday's article referred!
The few assumptions below will make the basis of my illustration.
Let us assume that my friend's monthly salary is RM 3000(salary growth of 5.0%) and expenditure is RM 2100 a month, he would like to retire at the age of 55 years(he is now 40 years). Thereafter, he assumed that he will stay on alive until the age of 75.
His current total savings in the EPF scheme is RM 180,000 and it generates 4.5% return anually, and he has no other savings apart from that. Assume that the prevailing consumer price index(CPI) stands at 4% and the Fixed Deposit(FD) rate is 2.5% per annum. My friend also aspires to have 70% of his last drawn salary to cover his monthly expenses during retirement, till his death. For this explanation let's not take into other consideration, although in real life you need to factor in all possible assets and liabilities.
Okay, with that information above we are ready to calculate and derive to a decision to advice my friend if he should purchase the ASM or the Sukuk Bon.

STEP ONE:
FIND HOW MUCH MONEY HE NEED TO COVER HIS WHOLE RETIREMENT EXPENDITURE AND THEN CONVERT THE AMOUNT IN TODAY'S VALUE.
At age 55 his annual salary would be : RM 74841.41 and 70% of it would be
RM 52388.99. He needs this amount to cover his anual expenditure until his last stroke of his breath.
Now, that will mean my friend needs to have an amount of RM 1,207,070.22 at the beginning year of his retirement age.

STEP TWO:
FIND OUT HOW MUCH HIS EPF AMOUNT WIL BE AT RETIREMENT.
Current EPF balance is RM 200,000 with 4.5% dividend. That would give him a total of RM 387,056.49 at age 55. However, note that my friend's salary also increases at 5% per annum and with 4.5% dividend on this increament alone, the end value will be RM 2,691.91.
Therefore, the total amount of EPF balance estimated at 55 will be RM389,748.40

STEP THREE:
FIND OUT THE VALUE OF AMOUNT NEEDED AT AGE 55 IN TODAY'S MONEY.
Substracting off the amount in STEP TWO from amount in STEP ONE, we will get RM 817,321.82 shortfall. This is net amount of money at age 55 my friend need in order to cover his expenditure throughout his retirement age.
Converting that amount to today's value, it will be RM 453,829.80

What does this amount says? Well, this amount will be the money my friend need to set aside yearly in order to match his 70% of his last drawn salary as his retirement period living cost. That is the same as RM 37,819.15 a month!!

Now, can my friend generate this amount monthly by investing in the ASM or the Sukuk? Your guess is as good as mine!