EPF asked to demand Govt to return monies💰 withdrawn by members during Covid-19
22 Nov 2021
The National Union of Bank Employees (NUBE) urged the EPF to demand that the government return monies withdrawn by B40 and M40 EPF members to protect their retirement savings.
NUBE general secretary J Solomon said every decision made by the EPF must take into account its responsibility to sustain members’ funds for contributors' wellbeing for their old age.
"Only 3% can afford retirement😱, and sustain it with their savings based on the minimum target of RM240,000 savings that EPF members should have upon reaching the age of 55” he said.
Malaysia is expected to become an ageing nation by 2030.👴👵
While these withdrawals are ploughed back to the economy and the business community benefited in a short term, the poor members’ retirement savings have been depleted.💸
The government's move to extend the period for the reduction in the EPF contribution rate from 11% to 9% will further heighten the low retirement savings problem faced by workers.
Some 6.1 million EPF contributors are now left with savings of less than RM10,000 each❗
Out of the estimated 6.1 million EPF contributors, some 3.6 million members have less than RM1,000 each in their savings. 😱😱
On the other hand, EPF is now focused on assisting members to rebuild their savings for their retirement future, following the special withdrawal facilities due to the Covid-19 pandemic. The EPF said in a statement on Oct 31, 2021.
The withdrawal facilities were exceptional in nature, and were introduced considering the circumstances at the time when the pandemic severely impacted the local economy.
i-Lestari, i-Sinar and i-Citra, resulted in a total of RM101 billion being disbursed to over 7.4 million members.
"While they provided some financial relief to members during the pandemic and various MCOs (Movement Control Orders), the withdrawals have inevitably led to 6.1 million members now having less than RM10,000 in their EPF accounts, of which 3.6 million have less than RM1,000, leaving them vulnerable and unprotected for their retirement,” the EPF said.
(Source: The Edge Markets)