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EPF Sets New Target Of RM240,000 For Basic Savings

New Basic Savings Quantum Begins January 2019

KUALA LUMPUR, 28 November 2018: The Employees Provident Fund (EPF) announces that the quantum for the Basic Savings will be revised from the current RM228,000 to RM240,000 effective 1 January 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, from Age 55 to 75 aligned with the Malaysian life expectancy. The new quantum (refer to Table 1) is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month.

EPF 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 having taken effect in 2017.”

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. The scheme 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 (FMI).

For more information, call the EPF Contact Management Centre (CMC) at
03-89226000 or refer to the EPF website at www.kwsp.gov.my, or visit any of the 67 EPF branches nationwide.

 

Table 1: The new basic savings schedule according to age

AGE

BASIC SAVINGS QUANTUM

AGE

BASIC SAVINGS QUANTUM

 18

2,000

37

68,000

19

4,000

38

74,000

20

6,000

39

80,000

21

8,000

40

86,000

22

10,000

41

93,000

23

13,000

42

101,000

24

15,000

43

108,000

25

18,000

44

116,000

26

21,000

45

125,000

27

24,000

46

134,000

28

27,000

47

144,000

29

31,000

48

154,000

30

35,000

49

164,000

31

39,000

50

175,000

32

43,000

51

187,000

33

47,000

52

199,000

34

52,000

53

212,000

35

57,000

54

226,000

36

62,000

55

240,000


 

 About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.

 

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