Tengku Zafrul: EPF not solution to challenges, retirement savings important

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KUALA LUMPUR: The Employees Provident Fund (EPF) ought to not be seen as a solution or a manner to overcome challenges, as this can have an effect on the retirement savings of contributors, particularly when Malaysia is predicted to hit ageing nation standing by 2030, says Minister of Finance Datuk Seri Tengku Zafrul Tengku Abdul Aziz.

“This implies that in eight years, retirees or senior residents will make up 15%, or 5.3 million individuals, of the inhabitants, and eight years is not a very long time.

“They are going to want greater savings to help themselves after retirement,” he mentioned in a Facebook posting on Sunday (Jan 2).

Tengku Zafrul mentioned this in response to sure quarters which have been urging the federal government to permit a one-off i-Citra withdrawal of RM10,000 for contributors affected by flooding within the nation.

The Finance Minister harassed that EPF savings are meant to assist contributors after they have retired, and famous that the federal government has supplied numerous initiatives to assist flood and Covid-19 victims.

Up to now, by way of the i-Lestari, i-Sinar dan i-Citra programmes, every EPF member is allowed to withdraw up to RM71,000, with the withdrawals totalling RM101bil.

Apart from that, the federal government has additionally supplied numerous monetary assist initiatives to assist the individuals, such because the RM10bil Bantuan Prihatin Rakyat (BPR) to assist the decrease revenue teams of B40 and M40, Covid-19 Special Aid (BKC), and the Loss of Income Aid (BKP) which have benefitted 11 million recipients.

“If we proceed to permit withdrawals at any time when a catastrophe occurs, the goal of retirement savings won’t ever be realised,” he added. “In the formulation of coverage, the federal government wants to be accountable and to assume long run, together with the wellbeing of our grandchildren.”

He mentioned the problem of inadequate savings is at an alarming stage and famous that the median savings of the B40 is at RM1,000, and if this degree continues till their retirement, they’d have RM4 a month to spend for twenty years, whereas for the M40, their savings of RM25,000 translate into RM104 to spend per thirty days for a similar interval.

Meanwhile, Tengku Zafrul mentioned the federal government has distributed and expanded monetary assist to RM1,000 to flood victims, as well as to different types of assist, resembling serving to them to purchase digital gadgets and a 50% low cost for automotive components. – Bernama



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