'Low starting salaries' Majority of EPF Contributors Below Age 30 Will Not Even Have RM240k to Retire

'This highlights the structural issue of low starting salaries among those beginning to enter the job market as they cannot achieve the basic EPF contribution

With the retirement fund to help you through your retirement days, do you think you will get to save up to RM500,000 before you bid farewell to your work?

According to EPF’s estimation, an individual needs to have a minimum of RM35,000 in their retirement fund by age 30 to achieve basic retirement savings of RM240,000 by age 55. Former Deputy Minister of Finance, Ahmad Maslan also said that Malaysians need to have at least RM240,000 in their KWSP to live comfortably when they retire.

Younger EPF members were less impacted by withdrawals during the COVID-19 pandemic, primarily due to fewer financial obligations, such as housing or vehicle loans.KRI report also highlighted that a similar trend persists among the 30–54 age group. It said many in this group may have made withdrawals from their EPF Account 2 for purposes like education or first home purchase, including relief programmes such as i-Lestari, i-Sinar, i-Citra, and the 2022 Pengeluaran Khas that allowed partial withdrawals.

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