How much EPF savings for retirement among the members? The answer is shown in the following chart:
As of 2023, among the 8.5 million active members, an overwhelming majority (73.9%) have savings balances of less than RM100,000. Given an estimated frugal expenditure pattern, this amount is likely to be fully depleted within five years.
How much EPF savings for retirement?
It depend on 3 major factors:
How well does a person want to live?
How long will a person live on Earth?
What will future inflation look like?
Since the third factor is difficult to ascertain (and is likely to be many times greater than the official CPI), a high estimation is a MUST.
According to the article How much do Malaysians need to retire comfortably? below is the write’s recommendations with which I also agree.
ADEQUATE – RM 650,000
BASIC – RM 390,000
ENCHANCED – RM 1.3 million
Final though, the EPF is a great, safe, and viable retirement option due to its historically high returns. We should not rule it out in favor of riskier plans like stocks or cryptocurrencies.
source: EPF Annual Report 2023
Save before it’s too late.
.
.
.
my grandmother never told me that, she strongly advocated having more kids and letting them taking care of old parents… err
Leave a Reply