EPF among the most efficient retirement plan

KOTA BHARU: Savings via contribution to the Employees Provident Fund (EPF) is an efficient retirement plan for retirees so that they do not face financial problem in their twilight years.

EPF contributor Wan Rosmawati Mohd Zain, 47, said without a strong discipline, one might not be able to save money consistently.

"With the EPF automated payment method, we can save monthly via salary deductions and receive contribution from employers. This gives financial guarantee after retirement," she told Bernama here, recently.

The contributors were able to pay off debts, buy houses, finance their children's education or perform the haj pilgrimage in Makkah.

"Since I already have a house, I plan to use the savings to perform the haj pilgrimage and travel to several countries. The rest will be invested into a registered scheme that will generate profits," said Wan Rosmawati.

Meanwhile, Rosni Ariffin, 45, said that her idea of retirement is having a comfortable house and performing the haj pilgrimage in Makkah.

"It is not easy to have a large sum of money and thus it needs to be managed prudently. I will use the EPF money to buy a house and perform the haj pilgrimage so that it is not misused to other things.”

"Perhaps the withdrawal of savings can be allowed at the age of 45 years because the contributors are still healthy and can travel to Makkah without a male family member," she added.

Another contributor, Zakaria Yin, 44, said he had spent some money in his second account four years ago for his post graduate studies.

"Alhamdulillah, with the EPF money, I could continue my studies because the tuition fees were deducted directly from my account,.” said Zakaria, the proud holder of a Bachelor of Management degree.

Wan Rosmawati, Rosni and Zakaria are bank employees.

Meanwhile, a photographer with a daily newspaper, Muhd Sazuki Embong, 57, said he had taken used all his EPF savings to complete his house and buy a farm land.

"I am grateful that I can now live in a comfortable house. Wthout the savings, I would have to go through many procedures if I was to apply for a bank loan," he added.

Up to Sept 2016, the EPF had 14.72 million contributors (members) of whom 6.83 million were active, and 541,503 active employers.

The EPF was established under the Employees Provident Fund Act 1991 to provide retirement benefits to members via their savings in an efficient and reliable manner. - Bernama