“With savings of less than RM10,000, members are expected to have a retirement income of less than RM42 per month over a period of 20 years,” he said.
In April 2020, before the introduction of special withdrawals related to Covid-19, there were 4.7 million EPF members (or 37%) whose accounts had less than RM10,000, said Anwar in his reply to Zulkifli Ismail (PN-Jasin).
Zulkifli asked about the government’s initiatives to deal with the problem of insufficient retirement funds among Malaysians.
Anwar said the government has increased the limit on matching contributions to RM500 per year under the i-Saraan programme that allows self-employed EPF members or those without a fixed income to make voluntary contributions.
He said the i-Suri programme, designed for housewives listed in the eKasih database, now permits those under 55 to receive a matching contribution incentive.
Anwar also said EPF has introduced several strategies to further assist its members such as an option to contribute above the standard 11% rate and the allowance for voluntary contributions, with an annual limit set at RM100,000, effective from June 1, 2023.
Earlier today, deputy finance minister Ahmad Maslan said a “flexible” third EPF account will be implemented from April next year.
Ahmad said the funds in the third account will only be able to be withdrawn for emergencies, adding that the ministry is working on defining what constitutes an emergency.
Ahmad also brushed off repeated calls for yet another EPF withdrawal scheme, saying the third account is a “new formula” to help those in need.
Perikatan Nasional had been pressing for another round of EPF withdrawals, and made it one of the coalition’s pledges under its manifesto for the general election last year.
Three EPF withdrawal schemes were introduced by the government of Muhyiddin Yassin, who is the PN chairman, during the Covid-19 pandemic. A fourth round was allowed after Ismail Sabri Yaakob took over as prime minister.
A total of RM145 billion was reportedly withdrawn during the pandemic by 8.1 million EPF members.