EPF: Forty per cent have savings of less than RM50,000

KUCHING: Forty per cent of Sarawak Employees Provident Fund’s (EPF) active members have savings of less than RM50,000, according to EPF Sarawak regional director Aminuddin Abdul Aziz.

This financial situation, he said, could severely impact their retirement prospects, potentially leaving them with only RM208 per month over a 20-year post-retirement period.

He added that this poses a significant challenge for individuals to sustain their livelihood during old age with such savings.

Furthermore, Sarawak is expected to become an ageing state by 2028, with 15 per cent of its population aged 65 and above, based on research by the Malaysian Ageing Research Institute (My Ageing).

This will present challenges, particularly in healthcare, elderly care facilities, and retirement income assurance.

Aminuddin further highlighted that the ideal minimum savings target in EPF is RM240,000 by age 55, but only 14.4 per cent of Sarawak members have achieved this goal according to recent studies.

Statistics show varying contribution percentages from different regions in Sarawak, with only a small proportion meeting the basic savings requirement.

“We want the people of Sarawak to be aware of the need for sufficient basic savings so that they do not face difficulties in the future,” he said.

EPF Sarawak aims to maximise participation from all Sarawakians, including those in the informal sector, in building retirement savings.