EPF: 40% savings below RM50,000

Kuching: Sarawak Employees’ Mutual Aid Fund (EPF) Sarawak regional director Aminuddin Abdul Aziz said 40 per cent of the fund’s active members have savings of less than RM50,000.

The economic situation will severely impact their retirement prospects, leaving them with as little as RM208 a month after 20 years of retirement, he said.

He added that sustaining one’s life in retirement with such savings poses a major challenge for individuals.

Moreover, according to a study by the Malaysian Institute of Ageing (My Ageing), Sarawak is expected to become an ageing state by 2028, with 15% of the population being aged 65 or above.

This will be a challenge, particularly in health care, aged care facilities and retirement income security.

Aminuddin further highlighted that the ideal minimum EPF savings target is RM240,000 by the age of 55, but a recent survey showed that only 14.4 per cent of Sarawak subscribers have achieved this target.

Statistics show that contribution rates vary across Sarawak, with only a small proportion meeting the basic savings requirement.

“We want Sarawakians to realise the need for adequate basic savings so that they do not face difficulties in the future,” he said.

EPF Sarawak aims to maximise participation in retirement savings for all Sarawakians, including those in the informal sector.

0 Comments

Leave a Comment