Have you ever wondered if your EPF savings are sufficient to enjoy a comfortable retirement?
The Employees Provident Fund (EPF) is now introducing the “My Budget 2024/2025” Guide and the Retirement Income Adequacy Framework (RIA), specially designed to help Malaysians plan their finances and retirement savings more efficiently.
The RIA Framework introduces three levels of savings accounts for retirement:
Basic Savings:
Accommodates basic retirement needs
Target: RM390,000 (to be increased in stages until 2028).
Monthly Withdrawals: Starting at RM1,625 in the first year, increasing to RM4,434 by year 20.
Adequate Savings:
Maintain a reasonable standard of living during retirement.
Target: RM650,000.
Monthly Withdrawal: Starting at RM2,708, increasing to RM7,389 after 20 years.
Enhanced Savings:
Provides greater financial freedom for a better quality of life during retirement.
Target: RM1.3 million.
Monthly Withdrawal: Starting at RM5,417, increasing to RM14,779 by year 20.
For example, a single retiree would need around RM2,690 per month to cover basic needs and live comfortably.
EPF Chief Executive Officer, Ahmad Zulqarnain Onn, said this guide aims to ensure that all Malaysians have the opportunity to plan for a better retirement.
With realistic savings targets and clear financial guidance, he is confident that this initiative can have a positive impact on all retirees to live their lives.
The “Belanjawanku 2024/2025” guide can be downloaded for free on the EPF website.
With this initiative, the EPF hopes that Malaysians can plan their finances wisely and enjoy a more stable and comfortable retirement.
