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KOTA BARU – Malaysians should have at least RM240,000 in their Employees Provident Fund (EPF) to retire at 55 “with dignity”, Deputy Finance Minister Datuk Seri Ahmad Maslan said.
This sum would allow a contributor to support himself or herself for 20 years after retirement if expenses are capped at RM1,000 per month.
“If a person retires at the age of 55, plus 20 years of life after retirement, the total is 75 years, which is the life expectancy of Malaysians,” Ahmad was reported as saying.
He was in Kota Baru, Kelantan today to visit the EPF headquarters there.
Aside from statutory contributions by employers, Ahmad urged workers to increase their savings by contributing to the fund voluntarily through EPF’s i-Saraan scheme.
He said as of June, more than 500,000 contributors nationwide have done so using i-Saraan.
“We want to ensure the maximum participation of the people through this contribution, especially those in the informal sector such as traders, fishermen, rice farmers, farmers, and rubber tappers.
“In fact, those who work for the government are also recommended to contribute, even if they have a pension.
“Through this contribution, contributors are also eligible to receive incentives offered by the government of a maximum of RM300 annually, if they contribute at least RM2,000 per year, in addition to dividends up to 5%,” he said.
Spending RM1,000 per month or RM240,000 in total for 20 years is the EPF benchmark for basic savings achievement for retirement at 55.
EPF, as well as economists and government figures, have been expressing concern about dwindling retirement savings in contributors; accounts ever since people were allowed early fund withdrawals to help them cope during the Covid-19 pandemic.
EPF chief executive officer Datuk Seri Amir Hamzah Azizan said earlier this month that as of May 2023, only 30% of EPF’s active contributors met the basic savings target by age, while only 18% of total members met the same threshold. – The Vibes, July 24, 2023