MORE than three million active Employees Provident Fund (EPF) members have achieved the basic savings threshold of RM390,000, says Liew Chin Tong.
The Deputy Finance Minister said 3.04 million (38.3%) of the 7.94 million active EPF contributors aged between 18 and 60 had reached the basic savings threshold as of May 31 this year.
“This is a notable increase from the 2.71 million active EPF members in the same age group who had reached the basic savings threshold as of May 31 last year,” he said in response to a question from Datuk Seri Aminuddin Harun (PH-Port Dickson).
Aminuddin asked what measures and strategies were being developed to ensure Malaysians have adequate retirement savings and income in light of rising living costs and the country’s transition into an ageing nation by 2030.
Liew attributed the increase in EPF savings to various recent and ongoing government initiatives aimed at strengthening contributions to the fund.
Among them, he said, is the i-Saraan Plus programme introduced this year, which allows voluntary contributions by gig workers, e-hailing drivers, delivery riders and self-employed Malaysians.
He added that two other schemes introduced at the beginning of this year were i-Simpan, which allows members to make voluntary self-contributions, and i-Topup, which enables voluntary additional contributions.
Under i-Topup, employed EPF members and their employers may choose to contribute above the statutory contribution rate at any time, he said.
Under i-Simpan, EPF members may make voluntary contributions to increase their retirement savings, subject to an annual contribution limit of RM100,000.
Liew also said that as of May this year, 63 applications involving 86 beneficiaries had been approved under the i-Legasi scheme, with RM46.3 million transferred to them.
Introduced in February this year, the i-Legasi scheme allows contributors aged 55 and above to pass on their retirement savings to their spouses and children, provided they have sufficient savings.
Liew also described the restructuring of EPF accounts from two to three with the introduction of Account 3 (Akaun Fleksibel) in April 2024 as a significant long-term reform.
He said the move allows EPF members to better balance their savings without having to withdraw their retirement savings to meet short- and medium-term financial needs.
Liew added that the government and the EPF would continue to formulate holistic financial policies and mechanisms to ensure Malaysians have adequate retirement savings.
