He said this at “Star Media Group’s PowerTalk: Business Series” on Saturday, quoting a study carried out by the retirement fund.

“Only one out of five contributors who have withdrawn their money from the Employees Provident Fund to invest in unit trusts have enjoyed better returns than what the retirement fund would have given them.

“Contributors who opt to invest outside of EPF should have financial literacy,” he said, according to The Star.

Shahril also confirmed what has been reported many times before, saying that most contributors would not have enough to receive a meaningful retirement income when they reached the age of 55.

“From our records, 74 per cent of contributors did not have enough to receive a meaningful retirement income at age 55. Only 26% had more than RM196,000 upon retirement.

“This is the amount a person would need to receive a reasonable monthly income upon retirement,” he told the attendees at the forum.

Shahril attributed the main reason for contributors having a small amount to the low wages in the country, among other factors.

He also said that from January 2017, the EPF will allow retirees to maintain their savings and choose to receive dividends up to the age of 100, instead of withdrawing the entire amount.

It is part of EPF’s new initiatives for members who voluntarily decide to keep their savings, The Star reported.

On the estimated dividend to be paid out by EPF next year, Shahril said it is likely to be lower than this year.

“All global equity markets, including the domestic market, are facing a downturn this time.

“Equity returns will not be at the same level as last year. So, if you look at the contribution of equities, which provided 60% of our income last year, it is now already down to 40%.

“If this continues, our total gross income for 2016 will be less than 2015 and the dividend declared will be lower as well,” he was quoted as saying by The Star.