The EPF main concern is the adequacy of savings for members’ retirement. Malaysians today are blessed with a longevity that now extends to 75. As such, sustainability in savings is very important without having to be a financial burden to their loved ones. For that reason, the EPF has also revised the Basic Savings to a higher rate, of which now members should have at least RM196,800 of EPF savings by the age of 55 (or equivalent to RM820 per month for a period of 20 years, from age 55 to 75). The new Basic Savings rates which will take effect from 1 January 2014, have been benchmarked against the minimum pension for public sector employees which is currently at RM820 per month, so that member’s monthly retirement income does not fall below the poverty level. ( Refer to Table ). Following the revision of the rates, members would need to have higher savings in their EPF account to meet the amount determined according to their age in order to make them eligible to participate in the EPF-Members Investment Scheme. “This is to safeguard and ensure that members have sufficient savings in the EPF to finance their basic retirement needs in line with the average life expectancy before they could opt for other investment options,” Dato’ Ibrahim added.
Posted on: Fri, 23 Aug 2013 05:13:48 +0000
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