Only 21% of members aged 55 have EPF savings of RM228,000

KUCHING: Only 21 per cent of Employees Provident Fund (EPF) members aged 55 nationwide have the minimum EPF savings of RM228,000.

The EPF has estimated that members aged 55 must have at least RM228,000 in their EPF savings as part of their retirement plan for them to lead a sustainable lifestyle up to 75 years old, assuming that they are debt-free and not seeking medical treatment.

“You need to plan for your retirement. If you’re 55 this year, your EPF savings must have at least RM228,000 for a 20-year retirement.

“The RM228,000 derives from a calculation of monthly withdrawal of RM950 times 12 (months) times 20 (years) based on a life expectancy of 75 years,” EPF Retirement Advisory Service (RAS) advisor Ronney Khairuddin told a media interview after delivering a talk ‘Retirement Advisory Services - Your first step to retirement planning by EPF’ held at tHe Spring Shopping Mall here yesterday.

The talk was organised in collaboration with See Hua Group with the objective of raising awareness and highlighting the importance of financial literacy as part of retirement planning to all Malaysians.

According to Ronney, the EPF revises the minimum savings every three years and the RM228,000 is a revised figure released this year.

He said the EPF had always advised members against full withdrawal of their savings because they would lose the compounding benefits.

He pointed out that the EPF was not trying to stop members from withdrawing their savings but encouraged them to opt for flexi withdrawal.