How many EPF contributors have less than RM50,000 in savings?

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71 Per Cent of EPF Contributors Have Less Than RM50,000 in Savings

A significant majority of Employees Provident Fund (EPF) contributors, specifically 71 per cent, possess less than RM50,000 in their savings. This statistic highlights a critical situation regarding retirement adequacy for a large portion of the workforce. The Malaysian Youth Council (MYC) has expressed concern that further withdrawals from EPF accounts, particularly Account 1, could exacerbate the financial precarity of these individuals upon retirement.
Limited Withdrawals from Account 1 Urged as Last Resort

The Malaysian Youth Council (MYC) advocates that any withdrawals from EPF Account 1 should be considered only as a final measure. This recommendation is aimed at individuals who have exhausted all other financial aid options and have depleted their Account 2 savings. The concern is that such withdrawals will severely diminish retirement funds, potentially leading to poverty in old age.
Retirement Savings Target Significantly Higher

The current statistics reveal a stark contrast between the savings of many contributors and the recommended retirement fund. For individuals to retire at age 55, the EPF generally targets a minimum savings of RM240,000. The fact that 71 per cent of contributors fall below the RM50,000 threshold underscores a substantial savings gap.
Potential Decline in Savings Due to Pandemic Waves

Jufitri Joha, president of the MYC, voiced apprehension that continued economic instability, such as further waves of the Covid-19 pandemic, could lead to a sharper decline in EPF savings, especially among low-income members. This could leave individuals with insufficient funds despite decades of employment. The MYC has proposed alternative measures to prevent such a scenario and protect members' long-term financial well-being.

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How many EPF contributors have less than RM50,000 in savings?

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