By DASHVEENJIT KAUR / Pic By TMR File
The Employees Provident Fund (EPF) has revised higher the quantum for the minimum basic savings from RM228,000 to RM240,000 effective Jan 1, 2019.
The amount will be set as the minimum target of EPF basic savings for members who retire at the age of 55, the retirement fund said.
Basic savings refers to the amount that is considered sufficient to support members’ basic needs for 20 years upon retirement, from age 55 to 75, aligned with Malaysians’ life expectancy.
In a statement yesterday, EPF said the new quantum is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month.
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 made in 2017.
The revision would require members to have higher savings in their EPF account in order to be eligible to participate in the EPF Members Investment Scheme.