EPF steps in with RAS

RAS was introduced in July 1, 2014 as part of EPF’s long-term plans to enhance its service delivery and help members achieve a sustainable retirement.

Its long-term objective is to promote awareness on the importance of planning for their retirement as well as advocate financial literacy among EPF members.

“This is essential as the majority of EPF members do not have adequate basic savings by age band, while the average lifespan of Malaysians continue to increase,” EPF said.

“RAS is especially meaningful for members who are nearing retirement age or who have already retired but still have savings with the EPF and are in need of financial advice on retirement.”

Members can obtain advice, free of charge, through RAS on how they can stretch their EPF savings longer and earn dividends through compounding effect.

Rest assured, all of EPF’s RAS officers have been given comprehensive training and have received certification as financial or retirement advisers.

EPF highlighted that aside from providing advice and investment counselling, RAS also carries out awareness and education programmes on basic financial and retirement planning. Additionally, the service helps members with their withdrawal applications.

The group noted that members will benefit from the guidance given on EPF products such as the Flexi Withdrawal scheme as well as an indication on how much they could accumulate if they were to keep some of their savings with the EPF after they retire.

“RAS, however, does not make any recommendations, particularly on investment matters, or promote any other services offered by third parties,” it said.

On another note, EPF also highlighted that some RAS advisers have been put on an attachment with the EPF Mobile Team so they are able to provide advisory services to members located far from EPF branches.

“This initiative has received positive response from members in such areas who mostly have not heard about RAS and its benefits,” EPF said.

In the latest annual report, chief executive officer Datuk Shahril Ridza Ridzuan observed that the expansion of EPF’s RAS to 18 branches nationwide has helped members become more aware of the importance of financial planning to prepare for a more comfortable retirement.

He noted that it has also helped them to know more on how to stretch their savings over their golden years by opting for staggered withdrawal which will help ensure a more sustainable stream of income upon retirement.

“We are now in the midst of preparing to expand RAS to another 10 branches by the end of 2017,” Shahril said.

“By 2018, we target for all 67 branches to be able to provide RAS, and also to be able to reach out to rural communities via electronic and mobile platforms.”