KUALA LUMPUR: The issue of insufficient savings in the Employees Provident Fund (EPF) is at a serious level, with 6.3 million members under the age of 55, or 48%, having less than RM10,000 in their accounts as of Sept 30, says the Finance Ministry. In a written reply posted on the Parliament website on Monday (Nov 20), the ministry said the figure rose from 4.7 million members (37%) recorded in April 2020, before the introduction of Covid-19-related special withdrawals. "With savings of less than RM10,000, members are expected to have a retirement income of less than RM42 per month for a period of 20 years. "The additional withdrawals from Account 1 also have a long-term effect, namely a significant reduction in retirement savings among EPF members," it said in response to a question raised by Zulkifli Ismail (Perikatan Nasional-Jasin) on the government's initiative to address the issue of insufficient retirement savings among the people, compounded by the large informal sector in Malaysia and a higher dependency ratio. The government announced in Budget 2024 an increase in the matching grant limit under the i-Saraan programme from RM300 to RM500 per year, subject to a maximum limit of RM5,000 for each eligible individual throughout their lifetime.

Source: The Star November 21, 2023 01:16 UTC