‘Many EPF contributors aged 55 had RM55,000 or less’
KUCHING: As many as 65 per cent of Employees Provident Fund ( EPF) members aged 55 had RM50,000 or less in their EPF savings last year.
EPF Retirement Advisory Service ( RAS) advisor Ronney Khairuddin described this as a worrying scenario, given that most Malaysians would need more savings for longer retirement days.
“The amount of RM50,000 is not enough to cater for a 20-year retirement period based on a life expectancy of 75 years,” he said at 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 to raise awareness and highlight the importance of financial literacy as being part of retirement planning for all Malaysians.
Ronney reminded that Malaysia ‘is fast becoming an aged nation’ as well as the pertinence of having a retirement plan.
He said although the retirement age in Malaysia is 60, Malaysians who are still productive can continue contributing to the EPF up to the age of 75.
“If you’re still working beyond the age of 60, you are still eligible
The amount of RM50,000 is not enough to cater for a 20-year retirement period based on a life expectancy of 75 years.
for EPF contribution until you’re 75 years old. We encourage EPF members to continue contributing for the compounding benefits.
“Under the EPF Act, the EPF must give at least a 2.5 per cent dividend to members,” he added.
Ronney asserted that this was not the time for Malaysians to spend more but a time to save as much as they could.
He therefore advised eligible EPF members to go for flexi instead of full withdrawal while stressing: “Your money is safe with EPF.”
He said EPF members especially the ‘sandwich generation’ should not simply utilise their EPF savings, referring to individuals who need to raise their children and look after their parents at the same time.
“Your children still depend on you and your parents also rely on you to take care of them, and you’re in the middle, making you the sandwich generation. In this case, you have to be even more cautious with your spending and make sure that you will have enough savings as you age,” advised Ronney.
Ronney Khairuddin, EPF Retirement Advisory Service (RAS) advisor