KUALA LUMPUR: Some 3.6 million Employees Provident Fund (EPF) contributors have less than RM1,000 in their savings.
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Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the meagre balance in EPF accounts was revealed based on assessments as of Sept 30, following a total RM101 billion withdrawals through i-Lestari, i-Sinar and i-Citra schemes, which saw some 6.1 million members now left with less than RM10,000.
He said the depletion of savings among EPF Bumiputera members was more alarming, as some 4.4 million of them or 54 per cent Bumiputera members now have less than RM10,000 and two million or 25 per cent of them have less than RM1,000 in their EPF accounts.
“Of the 1.62 active EPF members, it was found that 479,000 of them or 29.6 per cent have less than RM50,000.
“While 70 per cent of active members aged 45 to 59 have over RM50,000 savings, this is not a comfortable amount for retirement,” he said in a written parliamentary reply to a question from Datuk Seri Dr Wan Azizah Wan Ismail (PH-Pandan).
Tengku Zafrul said RM50,000 was only sufficient for a monthly RM1,000 expenditure for only four years, or a paltry RM200 per month for 20 years.
He said it would be challenging to build up sufficient savings as the age group has less than 15 years before reaching retirement age.
While the three initiatives have helped ease the burden of members during Covid-19 pandemic, it has indirectly left them vulnerable without retirement protection, he said.
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“For example, 73 per cent or almost three-fourths of EPF members are in a dire situation where their fund is insufficient to retire above the poverty line.
“EPF has estimated that members need to work between four and six additional years to rebuild their savings that have been withdrawn during the pandemic.”
This, he said, would cause a significant drop in percentage of members that have the basic saving of RM240,000 at 55, from 36 per cent in 2020 to less than 27 per cent by end of this year.
He said the government, together with EPF, were carrying out efforts to help members rebuild their savings for their retirement future.
He said the government is steadfast in its stance to strengthen the social protection agenda for the Malaysian Family. This includes i-Saraaan incentive and Kasih Suri Keluarga Malaysia.
“In addition, the Social Protection Council Malaysia (MySPC), chaired by the prime minister is currently studying fundamental reformd of the country’s social protection system.”
“The efforts would help towards addressing any mishmash of the system, to ensure that the vulnerable have the access to the minimum standard of living even in an unpredictable environment.”-NST