Following Prime Minister Datuk Seri Anwar Ibrahim’s announcement during the tabling of Budget 2024, the Employees’ Provident Fund (EPF) will undergo a restructuring of contributor’s accounts to help them maximise their retirement savings.
In his speech during the tabling of Budget 2024, Anwar introduced a host of changes for EPF accounts. The changes are aimed at improving the social security net that EPF provides.
Prioritising retirement wellbeing
“The accounts of EPF contributor’s will be restructured to help maximise retirement savings. A flexible EPF account will also be introduced as a new account that allows contributors to access their accounts at any time,” said Anwar.
EPF’s chief executive officer, Datuk Seri Amir Hamzah Azizan said that the changes will help contributors balance out their short, medium and long-term goals.
“In line with the rapid ageing phenomenon and the increasingly informal work landscape in Malaysia, EPF continues to review the EPF scheme to ensure that EPF members can meet their lifecycle needs without affecting their savings for retirement.
“At the same time, the EPF will also introduce a Flexible Account as a new account that can be accessed by members at any time, especially in times of emergency,” said Amir Hamzah in a statement today.
Matching incentive for i-Saraan
Amir Hamzah also touched on several other key initiatives involving EPF which was announced during the tabling of Budget 2024, such as the increase of the government’s matching incentive for the i-Saraan programme.
“Additionally, the i-Saraan programme has also been enhanced where eligible Malaysians in the informal sector- including housewives and those with no fixed income under the age of 60- will have the opportunity to receive a lifetime incentive of RM5,000 per individual, with a capping of RM500 per year.
“This incentive is set to benefit more than 350,000 current and new i-Saraan participants,” he said.
Amir Hamzah also stated that he is confident that all the initiatives introduced in Budget 2024 will help Malaysians increase their retirement savings.
“EPF supports and will work with the government in realising the aspirations of Malaysia Madani to ensure the retirement life of Malaysians is secured,” he said.
Expanding i-Sayang and i-Suri programmes
Other additional support include expanding the i-Sayang programme to cover husbands with working wives. In the statement, Amir revealed that 34,000 accounts have been created to date.
Similarly, the government’s matching incentive under the i-Suri programme will be exteneded. Amir stated that a matching incentive will be provided for every ringgit contributed into the EPF Scheme by housewives under the age of 60 years old registered in the e-Kasih database. Participants will also have the opportunity to receive a lifetime incentive of up to RM3,000 per individual, subject to a capping of RM300 matching incentive per year.
