EPF

PRIOR to the Covid-19 special withdrawal schemes, about 3.3 million or 22% of Employees Provident Fund (EPF) members were able to meet the basic savings ...

We should be able to make well-informed financial decisions throughout our lives and understand the possible impact of such decisions. We should also be in control of our finances, have the opportunity to improve our overall well-being, and be able to adjust our finances during unexpected events. We need to keep track of our budget and expenses for a detailed and up-to-date description of our financial situation. Use the EPF basic savings to keep track of your EPF savings according to age, or refer to the Belanjawanku Guide for estimates on how much savings you should put aside monthly and how much you would need as a senior citizen. Starters are advised to start small if they have to, and then try to increase the amount of savings each month. Those not under formal employment, and are thus not under the mandatory coverage of the EPF, can choose to contribute to one of the EPF’s voluntary savings programmes – i-Saraan and Kasih Suri Keluarga Malaysia. Malaysians should understand the importance of saving and start saving early to take advantage of compound interest. As of July 2022, only about 15.6% of active members in the 25 to 29 age category are able to meet basic savings; 30 to 34 (34.4%), 35 to 39 (43.6%), 40 to 44 (44.9%), 45 to 49 (41.4%) and 50-plus (33.2%). Overall, only 28.3% of active members are able to meet basic savings over the same period. This translates into an adequate savings target of about RM600,000 to last for 20 years of retirement, said the EPF. Individuals who needed to withdraw from the special schemes are those with the least amount of savings, said the EPF. PRIOR to the Covid-19 special withdrawal schemes, about 3.3 million or 22% of Employees Provident Fund (EPF) members were able to meet the basic savings target.