Kota Kinabalu: About 80 per cent of 1.14 million Employees Provident Fund (EPF) members in Sabah have savings of less than RM50,000, said EPF Sabah and Labuan Director Mohd Fadil Sarehan.
He said the situation needed serious attention to ensure Sabahans have adequate savings for a comfortable retirement, particularly informal sector workers.
“While formal sector workers make regular monthly contributions, those in the informal sector such as farmers and fishermen often have irregular incomes, making it hard for them to contribute consistently.
“Based on our statistics, 80 per cent of Sabah’s 1.14 million members have savings of less than RM50,000. This is a challenge for us,” he told a press conference after delivering a presentation on EPF development in Sabah at a media engagement, here, Wednesday.
Mohd Fadil said consistency in saving was among the key factors affecting members’ retirement savings, stressing the need for greater awareness among those in the informal sector.
“When we talk about savings of less than RM50,000, there are two aspects to consider. First, for those working in the formal sector, we are not as concerned because they have monthly EPF contributions. What concerns us are those in the informal sector as they do not make consistent contributions.
“That is why the role of ministries, media partners and NGOs play a very important role in continuously spreading awareness among these groups and encouraging them to increase their EPF savings,” Mohd Fadil said.
He was optimistic that if everyone works together, the situation where 80 per cent have savings of less than RM50,000 can be improved.
Mohd Fadil said retirement planning should not be viewed solely in terms of having sufficient money, but should also take into account healthcare, accommodation, food and other needs.
Mohd Fadil also urged EPF members to make or update their nominations, noting that only about 20 per cent of the EPF’s 1.4 million members in the State had made nominations, which is very low.
He also called on Muslim EPF members to consider switching their savings from the conventional to Shariah savings, describing it as part of their social and religious responsibility.
“God willing, by saving through the Shariah option, there will be blessings in our savings, which we can then use after retirement,” he said.
