KUALA LUMPUR: The Employees Provident Fund has revised higher the minimum basic savings target for retirement at age 55 to RM240,000.
The basic savings target, which represents the amount considered sufficient to support EPF members' basic needs for 20 years upon retirement, was previously set at RM228,000.
According to a statement, the EPF said the new quantum is benchmarked against the minimum pension for public sector employees, which was raised from RM950 to RM1,000 per month.
“The EPF Basic Savings quantum is revised periodically according to the minimum pension for public sector employees, or every three years, whichever earlier, with the last revision having taken effect in 2017," said EPF head of strategy management department Balqais Yusoff.
Accordingly, members will now be required to have higher savings in their EPF account to be eligible to participate in the EPF Members Investment Scheme.
The scheme provides members with an option to have a portion of their EPF savings in Account 1 invested in unit trust funds or via private mandates managed by the appointed Fund Managers Institutions (FMI).