THE Covid-19-related withdrawals over the past two years have had a massive impact on the savings of Employees Provident Fund (EPF) contributors, as currently, only 3% of them can afford their retirement.

EPF chief strategy officer Nurhisham Hussein said the i-Sinar, i-Lestari and i-Citra withdrawals have caused many under-50s members to have critically low savings.

“Even with Covid-19, 80% of Malaysian men and 90% of Malaysian women will reach age 60, while one out of three men and two out of three women will reach age 80.

“We now estimate that only 3% of Malaysians can afford to retire.”

He said by year-end, 54% of EPF members aged 54 will have less than RM50,000 in their savings account, adding that the majority of those who withdraw their entire savings upon reaching 55 will use it up within two to three years.

“We are very sympathetic to the plight of our members and hope that the (withdrawals) have achieved the intended purpose of helping them financially.

“(Moving forward,) the reopening of the economy and measures announced in Budget 2022 should help relieve the pressure on our members.”

On the consequences should another round of withdrawal be permitted, he said those who have dipped into their EPF savings will need to work an extra four to six years to cover the amount withdrawn over the past two years.

Since it is unlikely that the retirement age will be raised, they will not have enough for their retirement, he added. – Bernama, October 31, 2021.