No dif­fer­ence in an­nual div­i­dends

The Sun (Malaysia) - - NEWS WITH­OUT BOR­DERS -

par­tial with­drawals upon reach­ing age 55,” EPF CEO Datuk Shahril Ridza Ridzuan ( pix) told a press con­fer­ence here yes­ter­day.

Upon reach­ing 60, funds in Akaun Emas and any bal­ance in Akaun 55 will be com­bined for with­drawal.

There will be no dif­fer­ence in the an­nual div­i­dend pay­out per­cent­age be­tween the ac­counts.

Shahril Ridza said the ini­tia­tive would al­low its mem­bers to ac­cu­mu­late more re­tire­ment sav­ings upon reach­ing age 60.

“The ex­tra sav­ings ac­cu­mu­lated dur­ing this five-year pe­riod will go a long way in serv­ing mem­bers’ needs when they re­tire,” he added.

Shahril Ridza stressed that there will be no changes to the cur­rent age 55 with­drawal de­spite the in­tro­duc­tion of Akaun Emas.

EPF also an­nounced the ex­ten­sion of div­i­dend pay­ment limit to age 100 from the cur­rent 75, which will ben­e­fit mem­bers who choose to main­tain a por­tion of their sav­ings with EPF.

EPF has 255,900 ac­tive mem­bers aged 55 to 60 with to­tal sav­ings of RM31.6 bil­lion as of Sept 30.

Other en­hance­ment ini­tia­tives in­tro­duced by EPF in­clude an in­crease in the ba­sic sav­ings quan­tum, changes to the nom­i­na­tion poli­cies, pre­re­tire­ment with­drawals for nonMalaysian mem­bers and en­hance­ments of pol­icy ad­min­is­tra­tion.

Shahril Ridza said the ba­sic sav­ings quan­tum, a guide for mem­bers to track the rec­om­mended min­i­mum re­tire­ment sav­ings by age, has been in­creased from RM196,800 to RM228,000 at age 55, in line with the re­vised min­i­mum pen­sion for pub­lic sec­tor em­ploy­ees.

Mean­while, el­i­gi­bil­ity to par­tic­i­pate in the EPF Mem­ber In­vest­ment Scheme has been in­creased from 20% to 30% of sav­ings in ex­cess of the ba­sic sav­ings quan­tum by age in EPF Ac­count 1.

Ac­cord­ing to EPF, 62% of its ac­tive mem­bers do not achieve the ba­sic sav­ings quan­tum, mainly due to low salary, low con­tri­bu­tion rates pre-1995, pre-re­tire­ment with­drawals that do not build as­sets, early re­tire­ment and mem­bers’ spend­ing and life­style.

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