Reports indicate that a significant portion, around 35%, of individuals in this age group have savings below RM10,000, raising alarms about their ability to support themselves post-retirement. Tuan Hassan bin Abdul Karim, representing Pasir Gudang, has expressed concern about the financial preparedness of Malaysian citizens for retirement, particularly focusing on EPF members aged 54 and above.
In response to these concerns, a statement released by the Minister of Finance II based on what transpired today in the Dewan Rakyat outlined several strategies aimed at bolstering retirement savings. These initiatives include the introduction of special incentive programs to encourage savings among citizens.
In response to these concerns, Amir Hamzah has outlined several initiatives aimed at bolstering retirement savings among EPF members. These initiatives include the introduction of special incentive programs to encourage savings.
One notable initiative highlighted by the minister is the introduction of special incentives under the i-Saraan program. “This initiative involves a 15% matching contribution from the government, up to a maximum of RM500 per year, for lifetime contributions not exceeding RM5,000 per individual.” he said.
Additionally, incentives are provided under the i-Suri program for housewives below the age of 55 registered in the e-Kasih database. This includes a 50% matching contribution for every ringgit contributed to the EPF, with individuals eligible to receive a lifetime incentive of up to RM3,000, subject to a maximum matching incentive of RM300 per year.
Furthermore, Amir Hamzah highlighted that the EPF has implemented various channels to facilitate member contributions, including options for employed members to contribute above the statutory rate of 11% at any time. As of December 31, 2023, 210,000 EPF members have registered to contribute above the statutory rate.
“Additionally, EPF members have the option to make voluntary contributions of up to RM100,000 annually under the Voluntary Contribution scheme. In 2023, a total of 904,000 members made voluntary contributions amounting to RM8.4 billion.” he further added.
The Minister also emphasised the one-off contribution incentive of RM500, introduced in 2023. “This initiative aimed to assist members with low savings who are nearing retirement age, encouraging them to enhance and accelerate their retirement savings accumulation.
These additional initiatives, while slightly different from previous years, further underscore the government’s commitment to addressing the challenge of insufficient savings among individuals approaching retirement age.” he said.
These initiatives, as outlined by the minister, aim to encourage EPF members to bolster their retirement savings and address the challenge of insufficient savings among individuals approaching retirement age.
