EPF: Young Malaysians Urged To Start Diversifying Investments
Malaysians aged of 16-35 are urged to diversify their investments and savings to avoid having an insufficient retirement fund.
This is especially based on the statistics provided by the Employees Provident Fund (EPF), 64% of its members that are aged 54 had less than RM50,000 in their retirement account. This amount would only last four years beyond their retirement, at the rate of RM950 a month for expenses.
Given this rather alarming situation, EPF is urging Generations Y (21-35 years) and Z (16-20 years), who constitute more than 50% of members, to reflect on their retirement plan, and they are also promoting its Retirement Advisory Service (RAS) to advise and help them protect savings.
EPF Petaling Jaya RAS adviser Mogana Murugan pointed out that the basic savings amount is set according to age and that members should have at least RM228,000 (or RM950 for monthly expenses for 20 years) in their EPF account by age 55.
She added that only 21% or 2.9 million of members had sufficient basic savings based on their age, and contributors were encouraged to engage with financial consultants in considering various investments, and not just depend on the pension fund.