KUALA LUMPUR: Fewer than four in 10 active EPF members in the formal sector have saved enough for their age, according to the finance ministry.
Deputy finance minister Liew Chin Tong said 3.04 million active EPF members, or 38.3% of 7.94 million members aged 18 to 60, had reached the basic savings level expected for their age as of May 31.
“This is a clear and encouraging improvement compared with 35%, or 2.71 million of 7.74 million active formal members who had reached the age-based basic savings level as of May 31 last year,” he told the Dewan Rakyat.
The figure does not mean that all 3.04 million members already have savings of RM390,000, which the EPF estimates is the minimum amount needed upon retirement to achieve retirement income adequacy. However, it aligns with age-based savings targets.
Liew was responding to Aminuddin Harun (PH-Port Dickson), who asked about government measures to ensure that people have enough retirement savings and income as living costs continue to rise and the country becomes an ageing nation.
The deputy minister said the government and EPF are taking steps to help members build their retirement savings, including restructuring the number of EPF accounts from two to three.
Under the new structure, 75% of each contribution is kept for retirement, 15% can be used for approved needs such as housing, education and health, and 10% can be withdrawn for short-term needs.
Liew said EPF is also trying to encourage more people to save voluntarily, including the self-employed, gig workers, women and housewives.
Liew said another scheme, i-Legasi, allows members aged 55 and above with more than RM650,000 in savings to transfer some of their money to younger family members. As of May, 63 applications had been approved, involving RM46.3 million for 86 recipients.
