KUALA LUMPUR – Deputy Finance Minister Datuk Seri Ahmad Maslan said Malaysians should aim to have at least in their RM240,000 Employee Provident Fund (EPF) accounts in order to have a
“dignified” retirement at the age of 55.
According to Bernama, Ahmad said the contribution amount would allow the retirees to sustain themselves for a 20-year period after retirement, considering an expenditure rate of RM1,000 per month.
With the life expectancy of Malaysians at around 75 years, retiring at 55 would provide sufficient financial support throughout their post-retirement years.
The minister also stressed on the significance of increasing savings contributions and suggested that individuals consider making voluntary contributions through EPF’s i-saraan programme.
He said that as of June, over 500,000 contributors nationwide have already made contributions under EPF i-salary, and the government aims to maximize participation in this programme.
“Our objective is to encourage maximum participation, particularly among those in the informal sector, such as traders, fishermen, rice farmers, rubber tappers, and others,” Ahmad said after visiting the EPF headquarters in Kota Bharu, Kelantan, this afternoon.
“We also recommend that government employees contribute, even if they have a pension.”
Contributors who participate in the EPF i-saraan programme are eligible to receive government incentives of up to RM300 annually, provided they contribute a minimum of RM2,000 per year.
Additionally, contributors can enjoy dividends of up to five percent on their savings, he said.
To further facilitate retirement planning and increase awareness about EPF contributions, Ahmad said the government has launched 26 EPF Mobile Counters in the eastern region, with a particular focus on rural areas.
These mobile counters offer retirement advisory services and retirement savings calculations, helping individuals assess the adequacy of their savings for a comfortable retirement.
The government’s efforts aim to equip Malaysians with the necessary financial security to lead fulfilling lives during their retirement years.
By encouraging higher EPF contributions and providing valuable resources for retirement planning, the government is taking significant steps towards ensuring a brighter and more secure future for its citizens, he said. – July 24, 2023