The Employees Provident Fund has revised higher the minimum basic savings target for retirement at age 55 to RM240 000.
The basic savings target, which represents the amount considered sufficient to support EPF members’ basic needs for 20 years upon retirement, was previously set at RM228, 000. According to a statement, the EPF said the new quantum is benchmarked against the minimum pension for public sector employees, which was raised from RM950 to RM1 000 per month. The Basic Savings refers to the amount that is considered sufficient to support members’ basic needs for 20 years upon retirement, between the age 55 to 75, in line with the Malaysian life expectancy.
The new quantum is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1 000 per month. Accordingly, members will now be required to have higher savings in their EPF account to be eligible to participate in the EPF Members Investment Scheme.
The scheme provides members with an option to have a portion of their EPF savings in Account 1 invested in unit trust funds or via private mandates managed by the appointed Fund Managers Institutions (FMI).