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Malaysia’s EPF sets new minimum savings for employees at age 55

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The quantum for basic savings members should have upon reaching age 55 will be revised from the current RM228,000 to RM240,000 effective 1 January 2019, as announced by Malaysia’s Employees Provident Fund (EPF, also known as KWSP – Kumpulan Wang Simpanan Pekerja).

Basic savings refers to the amount considered sufficient to support members’ basic needs for 20 years upon retirement, from age 55 to 75 aligned with Malaysian life expectancy.

It is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month.

The new basic savings schedule according to age:

 

EPF head of strategy management department, Balqais Yusoff said, “The EPF basic savings quantum is revised periodically according to the minimum pension for public sector employees, or every three years, whichever earlier, with the last revision having taken effect in 2017.”

With the new Basic Savings in place, members will now accordingly be required to have higher savings in their EPF account in order 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).

Lead image / StockUnlimited
Graphic / Human Resources

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