KOTA KINABALU: The Employees Provident Fund has extended its free Retirement Advisory Service (RAS) here, as well as in Ipoh and Kuantan – in line with its emphasis on helping EPF members manage their finances after they have stopped working.
EPF deputy chief executive officer (strategy division) Tunku Alizakri Raja Muhammad Alias said that most members use up their savings within three to five years after retiring, while almost 70% of members have less than RM50,000 in savings at the age of 54.
As such, retirement advisory services are vital in helping them manage their finances before the money runs out, he said.
“This is why we plan to open our RAS centres at as many of our offices nationwide as possible,” he told newsmen after opening the RAS centre at the EPF office here yesterday.
“We started in Kuala Lumpur and Petaling Jaya in 2014, followed by Johor Baru and Seberang Jaya (Penang),” he said.
He added that the EPF would set up more RAS centres next year, in addition to its present seven centres to date.
More than 6,000 EPF members have consulted the RAS centres for financial advice.
“The RAS is not only for those who are about to retire. Members can start planning as early as possible,” said Tunku Alizakri.
He said many people think that there would be a long way to go before retirement, “but retirement will eventually catch up with them.”
Planning for retirement has become more crucial as some Malaysians have to also care for their ageing parents, besides their children, he said.
Apart from ensuring that people have sufficient funds till at least the age of 75, he said, most people would also have health issues from 65 onwards and needed to be prepared for medical expenditure.
Tunku Alizakri said Malaysia was the second nation after South Korea whose retirement savings fund organisation offers retirement advisory services.