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  • Robert Tu (R2)

EPF used during pandemic, need to work 4-6 years more to rebuild. ๐—ข๐—ป๐—น๐˜† ๐Ÿฏ% ๐—ฐ๐—ฎ๐—ป ๐—ฟ๐—ฒ๐˜๐—ถ๐—ฟ๐—ฒโ—

Updated: Nov 26

(31st Oct 2021)

Special withdrawal facilities of #iLestari, #iSinar and #iCitra helped over 7.4 millions of EPF members to redeem pandemic fund worth RM101 billion.


EFP is concerned serious state most members having inadequate funds to retire

However, the 3 exceptional withdrawals have left 73% or nearly 3/4 of members in a serious state of having inadequate funds to retire.


It also estimates that members will need to work an extra 4-6 years to rebuild savings that have been used during the pandemic.


6.1 million members has less than RM10,000 savings in their EPF accounts

3.6 million of the above has less than RM1,000


The drop in savings is particularly worrying for Bumiputera members, as they made up 78% or more than three quarters of the withdrawal applicants. As a result, 4.4 million or 54% Bumiputera members now have less than RM10,000, and 2.0 million or 25% have less than RM1,000.


The bottom 40% of EPF members (about 5.0 million members) saw their savings drop by 38%


Only the top 20% of members aged below 55 saw an increase in savings, but this translates to a median of RM152,043, or equivalent to just RM633 per month for 20 years.


The past two years (since 2020) have had a massive impact on the savings of contributors, only 3% of EPF contributors can afford retirementโ—

EPF chief strategy officer Nurhisham Hussein said, "Those who had withdrawn from their EPF savings would now need to work an extra four to six years just to cover the amount that they withdrew over the past two years."



Source:

The Edge Markets

FMT

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