A recent report reveals that many Malaysians are unprepared for retirement due to insufficient savings in the Employees Provident Fund (EPF). The report highlights the trend of individuals struggling to meet the basic savings target of RM240,000 needed for a comfortable retirement.
KUALA LUMPUR - Freelance writer Nadrah Hizwan is 29, but already thinking about her retirement funds.
The Malaysian retirement fund, which is similar to Singapore’s Central Provident Fund, manages the compulsory savings plan and retirement planning for workers in the country.basic savings of at least RM240,000 needed to retire comfortablyIndividuals need at least RM35,000 saved by the age of 30 to meet this retirement goal. But most people under 30 have not met this benchmark, states the report titled The State Of Households 2024: Households And The Pandemic 2019-2022.
The report said that targeted government interventions, such as raising minimum wages and better wage-setting mechanisms, would help to combat wage stagnation and ensure financial stability for lower-income households. She suggests a minimum 20 per cent increase to better match living wages with the rising cost of living, particularly in urban areas. “Strengthening mandatory savings programmes and ensuring consistent contributions are crucial,” she said.Malaysia taps state funds to invest $35.4 billion domestically
“I am worried that I may not have enough savings to sustain me until 60 or 70,” said Ms Pandian, who has a college-age daughter, adding that she plans to work for as long as possible.
EPF Retirement Savings Malaysia Khazanah Research Institute Covid-19 Pandemic
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