KUALA LUMPUR (Nov 28): The Employees Provident Fund (EPF) will be revising the quantum for Basic Savings from the current RM228,000 to RM240,000 effective Jan 1, 2019.
The amount will be set as the minimum target EPF basic savings members should have upon reaching age 55, the pension fund said in a statement today.
Basic Savings refers to the amount that is considered sufficient to support members' basic needs for 20 years upon retirement, from age 55 to 75 aligned with the Malaysian life expectancy.
"The EPF Basic Savings quantum is revised periodically according to the minimum pension for public sector employees, or every three years, whichever earlier, with the last revision having taken effect in 2017," said EPF head of strategy management department Balqais Yusoff.
EPF said the new quantum is benchmarked against the minimum pension for public sector employees, which has been raised from RM950 to RM1,000 per month.
With the new Basic Savings in place, members will now accordingly be required to have higher savings in their EPF accounts to be eligible to participate in the EPF Members Investment Scheme.
The scheme provides members with an option to have a portion of their EPF savings in Account 1 invested in unit trust funds or via private mandates managed by the appointed Fund Managers Institutions.