EPF: Solely 3% of contributors can afford their retirement, says chief technique officer

0
37

KUALA LUMPUR (Bernama): Covid-19-related withdrawals over the previous two years have had an enormous influence on the financial savings of Staff Provident Fund (EPF) contributors, as at the moment, solely 3% of contributors can afford their retirement, says Nurhisham Hussein.

The EPF chief technique officer mentioned the Covid-19-related withdrawals, specifically i-Sinar, i-Lestari and i-Citra, resulted in lots of members beneath the age of 55 having critically low EPF financial savings.

“Even with Covid-19, 80% of Malaysian males and 90% of Malaysian girls will attain age 60, whereas one out of three males and two out of three girls will attain age 80.

“We now estimate that solely 3% of Malaysians can afford to retire,” he mentioned on the Perdana Fellow Alumni Affiliation Speaker Sequence webinar on Sunday (Oct 31).

Nurhisham was one of many panellists on the webinar, titled “Healthcare in Focus”.

In his presentation, Nurhisham mentioned by the top of this 12 months, 54% of EPF members aged 54 and beneath would have lower than RM50,000 of their financial savings account, noting {that a} majority of those that withdrew their complete EPF financial savings upon reaching age 55 would use it up inside two to a few years.

He famous that the withdrawals had been allowed as a result of extraordinary circumstances.

“We’re very sympathetic to the plight of our members and hope that the (withdrawals) had achieved the meant function of serving to them financially.

“(Transferring ahead,) the reopening of the economic system and the measures introduced in Finances 2022 ought to assist relieve the strain on our members,” he mentioned.

Commenting on the implications ought to one other spherical of withdrawals be permitted, he mentioned those that had withdrawn from their EPF financial savings would now have to work an additional 4 to 6 years simply to cowl the quantity that they withdrew over the previous two years.

Since it’s unlikely that the retirement age might be raised, they’d not have sufficient for his or her retirement, he mentioned. – Bernama



Source link