This is because many members do not plan or know how to use their retirement funds in such a way that it sustains them through the years.
The latest report by the pension fund, released today, says that only 33% of the active members achieve the basic savings quantum according to age.
“Sixty-eight percent of members aged 54 have savings lower than RM50,000,” reads the report, with a postscript adding that this amount can only last a person for five years if the member spends RM830 a month.
EPF Deputy Chief Executive Officer (strategy division) Tunku Alizakri Raja Muhammad Alias had said previously that most members used up their savings within three to five years of retirement.
The EPF is working to improve the situation through its RAS. The goal of RAS is to assist EPF members with sustainable retirement planning and to increase their financial awareness and understanding.
RAS centres were set up in Kuala Lumpur and Petaling Jaya in 2014, followed by Johor Baru and Seberang Jaya (Penang).
More than 6,000 EPF members have consulted the RAS centres for financial advice.