The Employee’s Provident Fund has announced a new target amount for Basic Savings that it hopes each Malaysian will be able to save by age 55. Effective 1 January 2019, the target savings for EPF members will be raised from RM228,000 to RM240,000.
This amount is has been calculated to be sufficient for Malaysians to survive for 20 years after retirement at the age of 55.
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.”
The new savings target was announced due to the increase in public sector pension, which was increased from RM950 to RM1000 per month.
For the most part, there will be little effect for the average Malaysian. It will, however, mean that there is a higher saving target for those who want to participate in the EPF Members Investment Scheme. Under the scheme, a portion of the EPF savings will be invested in unit trust.
