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Can you survive with just RM42 💵 to spend every month for 20 years after retirement? 😥


Image source: FMT

According to statistics shared by EPF chief executive officer in March 2022


6.1 million EPF contributors aged below 55, or 48% of its total members, has savings of less than RM10,000 📉 in their EPF accounts as of December 2021.

The EPF’s objective of ensuring the economic well-being of the nation’s workforce after retirement will suffer a setback if new requests for special withdrawal is approved.


Economic analyst said that EPF withdrawal is not a viable solution to help people with cash flows issues.


Cost of living issue

The prevailing cost of living issue 📈 is one of the factors forcing people to opt for EPF withdrawals because they see it as an easy access to cash.

Image source: Public Mutual Berhad

As some of the EPF contributors are still reeling from the effects of Covid-19 pandemic, they are pushing the government to consider allowing another round of EPF withdrawals of up to RM30,000 to address their short-term cash flow issue.





If contributors withdraw their savings 💰 to deal with the rising cost of living now, how are the contributors going to survive with so little savings if the economic conditions become more challenging in future❓ 🤔

Therefore, the government must introduce a continuous stream of initiatives to strengthen supply chains and food security in order to bring down prices and take proactive measures to assist jobless people as well as petty traders who are struggling to stay in business.


In response to new EPF withdrawal request, Prime Minister Datuk Seri Anwar Ibrahim said the government will have to take into consideration of the plight and the future of EPF contributors before they approve another round of special withdrawals.


He said it is better for the government to seek other effective options to help those impacted by the Covid-19 pandemic, as allowing a series of EPF withdrawals will have serious implications on contributors after they retire.


Contributors must go back to the original purpose of contributing to EPF, which is meant for retirement.

It will be problematic for the members if they have insufficient savings by the time they retire.


(Source: The Edge)

 

People are living longer and leading more active lives in retirement. As a result it is more important than ever for you to think about 💭 where your income will come from when you retire.


But when to start planning 🤔? The sooner, the better. Although youth in their 20s might not worry about retirement, starting early does give one more leeway. If you have missed that bus, you can start where you are, better late than never.

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