PM Anwar: 6.3 Million EPF Members Under 55 Have Less Than RM10,000 Savings

Alex Cheong Pui Yin

21st November 2023 - 2 min read

Prime Minister Datuk Seri Anwar Ibrahim has once again expressed his concerns regarding the low levels of retirement savings among Malaysians, noting that 6.3 million Employees Provident Fund (EPF) members under the age of 55 have less than RM10,000 in their account as of 30 September 2023. This is equivalent to 48% of the group.

According to Datuk Seri Anwar – who is also the Finance Minister – this updated figure is an increase from the 4.7 million members (37%) that was recorded back in April 2020, before several withdrawal facilities were introduced due to Covid-19. For context, a total of RM145 billion was reportedly withdrawn during the pandemic by 8.1 million EPF members, via the the i-Lestari, i-Sinar, i-Citra, and special RM10,000 withdrawal schemes.

“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 Akaun 1 also have a long-term side effect, namely a significant reduction in retirement savings among EPF members,” the prime minister said.

Datuk Seri Anwar further stressed that the government recognises the gravity of the situation, especially as the country is expected to become an aging nation soon, with significant impact in various areas. These include Malaysia’s economy, as well as the social welfare, health, and quality of life among the people – just to name a few.

To help alleviate the situation, the government has announced several key initiatives to encourage the rebuilding of one’s retirement funds, including increasing the matching contribution limit for the i-Saraan programme from RM300 to RM500 per year under Budget 2024. Similarly, the i-Suri programme was also improved, allowing housewives under the age of 55 who are also registered in the e-Kasih poverty database to now receive a matching contribution incentive of up to RM500 per year (previously RM200 per year).

Separately, the EPF had also introduced the option for members to contribute above the standard 11% statutory rate, as well as make voluntary contributions with an annual limit of RM100,000 since 1 June 2023. “EPF has initiated collaborations with agencies and gig platform providers, such as Grab Malaysia and GoGet Malaysia, to facilitate direct contribution channels for gig workers, simplifying their retirement savings process,” Datuk Seri Anwar added.

(Sources: The Star, The Edge Malaysia)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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