EMPLOYEES Provident Fund (EPF) contributors should have savings of at least RM240,000 by the time they turn 55 so they can comfortably retire, said Deputy Finance Minister Ahmad Maslan.

He said that amount would give one living expenses for 20 years after retirement if they spend RM1,000 per month. 

“If one retires at the age of 55, plus 20 years post-retirement, it would bring the (life span) to 75 years, which is the life expectancy of Malaysians,” he said after visiting EPF’s Kelantan headquarters in Kota Baru.

Ahmad said among suggestions given to workers to increase their EPF savings is to make voluntary contributions through the i-Saraan scheme. 

He said as of June, over 500,000 contributors opted to participate in the i-Saraan scheme, and the government intends to increase participation.

“We want to ensure maximum participation of workers in the scheme, especially among those in the informal sector such as traders, fishermen, farmers, rubber tappers, and others. Civil servants are encouraged to contribute, too, even if they have a pension.

“Through this scheme, eligible contributors will receive the incentive offered by the government, which is a maximum of RM300 annually, if they contribute at least RM2,000 per year, in addition to the dividend of up to 5%,” he said.

Ahmad said 26 mobile EPF counters were launched on July 4 in the eastern region, especially in rural areas, to promote and provide information about this scheme and retirement-related matters.

“Through these mobile counters, EPF contributors and the public can receive retirement advice and calculate their retirement savings to assess sufficiency, and ultimately secure better retirement,” he said. – Bernama, July 24, 2023.