KUALA LUMPUR: The Employees Provident Fund (EPF) has revised the quantum for the minimum Basic Savings for members aged 55, from RM228,000 to RM240,000.
The fund said in a statement that effective Jan 1, 2019, the amount will be set as the minimum target EPF basic savings members should have upon reaching age 55.
The Basic Savings refers to the amount that is considered sufficient to support members’ basic needs for 20 years upon retirement, between the age 55 to 75, in line with the Malaysian life expectancy.
The new quantum is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month.
“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,” EPF Head of Strategy Management Department, Balqais Yusoff.
With the new Basic Savings in place, members will now accordingly be required to have higher savings in their EPF account in order to be eligible to participate in the EPF Members Investment Scheme, which provides members with an option to have a portion of their EPF savings in Account 1 invested in unit trust funds or via private mandates managed by the appointed Fund Managers Institutions.
THE SUN DAILY