{"id":28365,"date":"2017-02-14T10:07:05","date_gmt":"2017-02-14T02:07:05","guid":{"rendered":"http:\/\/www.imoney.my\/articles\/?p=28365"},"modified":"2026-03-17T17:56:03","modified_gmt":"2026-03-17T09:56:03","slug":"akaun-emas-for-long-term-care","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/akaun-emas-for-long-term-care","title":{"rendered":"Is Akaun Emas The Answer To Your Long-Term Care?"},"content":{"rendered":"

No matter which way you cut it, you can never have too much protection to safeguard your finances in old age. You never know when you will need that money. When it comes to your long-term care, the idiom \u2018better safe than sorry\u2019 stays true.<\/p>\n

Hence, when the Employees Provident Fund launched the Akaun Emas in November 2016, it was welcomed news indeed and another step in the right direction to address Malaysia\u2019s ageing needs. The Akaun Emas, effective this January, aims to help EPF members save a second source of funds to serve their needs when they retire.<\/p>\n

While it is a good initiative, will it last till the time we need long-term care in our old age? With the average life expectancy of Malaysians having gone up to 75 years of age, Malaysia is 13 years away from being classified as an \u2018ageing society\u2019 \u2013 with the senior population reaching 15% by 2030.<\/p>\n

So what does this mean for our long-term care needs in our financial planning and retirement? First let\u2019s look at the anticipated cost of care.<\/p>\n

\"akaun

Source from www.managedcare.com.my<\/p><\/div>\n

<\/span>Is Akaun Emas sufficient for your long term-care?<\/strong><\/span><\/h2>\n

As depicted in the infographic, the cost for basic care for 5 years \u2013 while remaining relatively active with low care needs \u2013 is roughly RM 240,000, excluding factors of inflation and other external factors. Furthermore, according to the Malaysia Health Insurance organisation, the cost of healthcare increases at an average of 15% annually<\/a>.<\/p>\n

The Akaun Emas is a good initiative, but without additional options, the money accumulated won\u2019t be enough when we need long-term care during our senior years.<\/p>\n

Stacked on top of other investment options, you may have enough. However, investment incomes from interest rate-driven instruments have dropped.<\/p>\n

Though it should be noted, the EPF has a reliable track record of fund managing, having been able to give an average dividend of 6% in the past 5 years. Despite that, returns for the coming years are expected to be lower.<\/a><\/p>\n

Here\u2019s how much Akaun Emas accumulated in this scenario:<\/p>\n

Age:<\/strong> 55<\/p>\n

Average monthly income:<\/strong> RM6,000<\/p>\n

Balance from Account 1 and 2:<\/strong> RM30,000<\/p>\n

Projected balance at age 60:<\/strong> RM158,100 (Assuming average dividend rate of 6% p.a.)<\/p>\n

* Calculated using EPF Savings Calculator.<\/em><\/div><\/div>\n

Your Akaun Emas savings only covers the basic cost of care for about three years, should you dedicate the whole sum to long term-care.<\/p>\n

<\/span>Stocking up ammunition for our twilight years<\/strong><\/span><\/h2>\n

The positive note is the Akaun Emas certainly provide some much needed support for retirement. The more money you have for long-term care, the better off you are and three years coverage of basic care is better than nothing.<\/p>\n

However, the advent of the Akaun Emas signifies an important message.<\/p>\n

We need options that cater to our twilight years in retirement and our long-term care is a big part of it. As such, it is imperative to discuss these needs with a financial advisor and arm ourselves with greater awareness of the available investment and insurance offerings that can help in this endeavour.<\/p>\n

Among the offerings available, you could rely on these products to cover long-term care expenses:<\/p>\n