KUALA LUMPUR, Sept 9 ― The Employees Provident Fund (EPF) revealed that the majority of contributors have less than RM50,000 remaining in their accounts at the age of 54, much lower than the RM120,000 recommended by the government. Malay language daily Berita Harian reported EPF chief executive officer Datuk Shahril Ridza Ridzuan saying that 69 per cent of its members have insufficient retirement savings based on the figures taken last December. “A total of RM50,000 is expected to last only five years, compared to what is needed to survive for another 15 years. “Assuming that they have to spend at least RM800 a month, savings of RM50,000 is definitely not adequate,” he said yesterday at the EPF International Seminar.
The average life expectancy of the Malaysian population is 75 years, while the retirement age has gone up to 60. The EPF account is divided into two accounts. Based on the contribution to the retirement fund, 70 per cent goes into Account 1 and 30 per cent to Account 2. Members are allowed to withdraw from the first account at age 55. The second account may be used for specific purposes such as housing loans, education and medical expenses. The total from this secondary account may also be withdrawn at the age of 50.