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

About the Employees Provident Fund (EPF)

The Employees Provident Fund® (“EPF®”) is one of the oldest retirement funds in the world. Established in 1951, the EPF® is a social-security organisation focused on safeguarding member savings and delivering excellent services. In recent years, in line with its vision of helping members achieve a better future, the EPF® has expanded its role to encompass the creation of a comprehensive social well-being ecosystem. Today, the EPF® remains steadfast in its commitment to members through consistent efforts to update and improve itself, in order to build the foundation for sustainable, holistic and equitable well-being for all Malaysians.