Last updated  : 2/13/19 5:05 PM     

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 new.epf.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.