More than half of EPF members have less than RM5,000.
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Only 3% of Employees Provident Fund (EPF) contributors can afford retirement.
Bernama reported that this is attributed to Covid-related withdrawals which has affected their savings.
EPF Chief Strategy Officer Nurhisham Hussein was quoted saying that i-Sinar, i-Lestari and i-Citra withdrawals have reduced the amount of money in their EPF accounts.
He said that by the end of the year, around 54% of EPF members who are 54 years old have less than RM50,000.
Nurhisham also mentioned that those who took out savings their would need to work for four to six years just to cover back the amount.
Even with Covid-19, 80% of Malaysia men and 90% of Malaysian women will reach 60, while one out of three men and two out three women will reach 80. We now estimate that only 3% of Malaysians can afford to retire.EPF Chief Strategy Officer Nurhisham Hussein
He said that a majority of people who finally take out their savings as they reach 55 tend to spend all of it within two to three years.
It’s reported by Astro Awani that around RM101 billion have been channelled to 7.4 million members through facilities such as i-Lestari, i-Sinar, and i-Citra.
The Employees Provident Fund mentioned that although the facility has provided relief to the members involved, it has resulted in 6.1 million members now having less than RM10,000 in their accounts.
Out of that number, around 3.6 million members have less than RM1,000.
The fall in the amount of savings was even more worrying for Bumiputera members, as 78%, or more than three-quarters, had applied for the withdrawal facility. As a result, 4.4 million, or 54% of Bumiputera members now have less than RM10,000, and 2 million members, or 25%, have less than RM1,000.Employees Provident Fund
Unkempt in both stories and appearance, Hakim loves tech but tech left him on read, previously he used to write about tall buildings and unoccupied spaces that he can't afford, and legend has it that he still can't afford it to this day