How to save RM1 mln in EPF by the time you reach 60

KUCHING: Securing a millionaire’s fortune for future retirement is possible through smart financial decisions early in life, such as consistent contributions to the Employees’ Provident Fund (EPF).

By leveraging compound interest and disciplined saving habits, even young contributors can watch their modest savings blossom into substantial wealth, ensuring a comfortable and worry-free retirement.

EPF Sarawak regional director Aminuddin Abdul Aziz said currently in Sarawak, about 1,700 out of 850,000 contributors from various age groups have accumulated RM1 million in their EPF savings.

Therefore, he said, people who start contributing from a young age has a greater chance of accumulating enough savings that will last them through their retirement years comfortably.

For example, if an individual contributes with a salary of RM3,000 per month at the age of 30, with an average annual return of 5 per cent and an expected salary increase of 3 percent, their savings could reach over RM1.3 million by the age of 60.

“This is based on a contribution rate of 13 per cent by the employer and 11 per cent by the employee. But with the condition that no withdrawals are made from their AkaunFleksibel or Akaun Sejahtera or Akaun Persaraan until the age of 60,” he said during a courtesy visit to Suara Sarawak and Sarawak Tribune at its office here yesterday (July 3). 

Aminuddin added that contributing to EPF at a young age also ensures that an individual is better prepared for the future.

With sufficient savings, one can enjoy a more comfortable retirement without worrying about financial woes.

However, he said, one’s life after retirement will also be stable upon reaching the age of 55 with the basic savings achieved amounting to RM240,000.

“This translates to RM1,000 per month over a 20-year retirement period,” he added.

Additionally, he said since its establishment in 1968, KWSP Sarawak has set up seven branches, namely in Kuching, Miri, Sibu, Bintulu, Sri Aman, Sarikei, and Limbang.

He added that there are also three mobile KWSP trucks or platforms in four different locations, one each in Kuching, Sibu, and Bintulu to provide its services in mobile form to serve the rural communities.

“These trucks also operate in different locations each week, from Monday to Thursday, to make it easier for the public to reach and connect with us,” he said.