ALTHOUGH the first proposal made by the Employees Provident Fund (EPF) to extend the full withdrawal age from 55 to 60 has drawn flak, many are more receptive towards its second one.
Under the second proposal, minimum contributions will be aligned to the minimum wage legislation.
This means that it is mandatory for employers of workers with minimum wage to make contributions not just based on their basic salary, but on allowances as well.
Receptionist Fatimah Mohd Isa, 43, said she finds this a good idea because the money will still belong to her in the end and not someone else.
“Although more money will be deducted every month from now on, this also means that we would have more savings after we retire.
“In my case, I really do not have any other savings other than the EPF.
“I would rather they deduct more now so that I may have slightly more money to use when I’m older,” she told MetroPerak.
Fatimah, who plans to retire at 55, said she is worried that her current savings are not enough since recent economic times have been rough.
Likewise with security guard S. Ghanesan, he said he doesn’t mind the deduction from his total salary because in the end, the money is still his.
“I am planning to retire at 60, and there is the worry that my EPF savings are not enough for my golden years.
“If this proposal is largely accepted by the people, I hope they will put it into effect as soon as possible,” said Ghanesan, who is in his 50s.
Concierge attendant, who wished to be known only as Ven, 30, said minimum wage workers can always look on the bright side should this proposal be implemented.
“It is similar to forcing yourself to save more for rainy days.
“If they are deducting more money from your pay for EPF, this also means that the employers will be contributing more as well.
“I think it is a good way to ensure that we will have more retirement savings when the time comes,” he said.
As for shop manager Norwani Mohd Arshad, 44, she questioned if the deduction will be made on target commissions as well for those doing sales under this proposal.
“My salary does not include any allowances at all, so this would mean that my EPF is taken from my total salary a month.
“However, even if they plan to deduct from my commissions, I do not mind it either.
“Lesser money to use now only means that I may have a bit more money to use after I retire,” she said.
When asked at what age she planned to retire, Norwani said she still sees herself working even past age 60 as long as she is healthy.
“I like to keep myself occupied, and if I can earn more money fromwhatever I do, all the better.
“Also, my son will probably be working outstation by then and there is no point in me staying at home alone doing nothing,” she said.