PETALING JAYA: The Employees Provident Fund (EPF) has warned Malaysians that they will need at least RM600,000 to retire comfortably in major cities.

As such, it has advised workers to start saving for retirement and diversify investments.

It also said advice on such matters is available for free from EPF.

Its chief strategy officer Nurhisham Hussein said: “Based on our data, an individual retiring in Kuala Lumpur today will need to set aside RM2,450 a month for basic necessities. Based on this and figures from the Statistics Department, which state the lifespan of the average Malaysian is now 80 years, it means a person will need RM600,000 to retire.”

He said the figures take into account the current economic situation. However, the numbers vary depending on several factors such as location and individual spending habits.

“For example, if a person were to retire in Alor Star today, he or she will need RM1,980 per month based on purchasing the same basic necessities (as a person retiring in Kuala Lumpur),” he said, adding that the key to growing one’s retirement savings is to diversify investments.

“Don’t put all your eggs in one basket. There are several options available for Malaysians, such as putting money in verified unit trusts and financial institutions.”

Nurhisham said on realising the Malaysian salary is one of the lowest in the region, EPF has taken several measures to help grow their savings.

For instance, Malaysians can start contributing to EPF from as young as 14 years old, he pointed out. “Their parents can help create their EPF accounts and kick-start their contributions.”

He said EPF is also aware that the cost of living is high and statistically, Malaysians will reach their peak financial stability at 40 to 50 years of age.

“Malaysians usually have higher commitments, such as costly childcare, medical expenses and financial commitments to immediate and extended family members,” he said.

Nurhisham added that regardless of their financial status, contributors must diversify their savings.

“My advice is, when you turn 50 and are still working, try not to make any EPF withdrawals because you are still working and have a monthly income.”

Nurhisham said even those who are retired should only withdraw what they need so that the balance of their money can continue to grow.

“EPF pays dividends up to the age of 100. So, let your money grow and only take out what you need,” he said.

He noted that Malaysians realise the cost of living is rising and wish to grow their savings.

“Many of those who came to EPF for consultations have expressed concern and interest in growing their savings,” he said, adding that EPF has set up an advisory panel to help Malaysians make smart financial decisions.

“The service is free, and our advisers can help explain and advise where you should invest your money if you want to diversify,” he said.

On “trading gurus” that have been advertising their services on social media, Nurhisham said EPF advisers can give the same advice for free.

Meanwhile, he said October is financial literacy month, so EPF is working with Bank Negara Malaysia, Permodalan Nasional Berhad and several financial institutions to raise awareness of the importance of savings and financial literacy.

As a final word of advice, Nurhisham said: “When you want to invest, do so only with the money you can afford to lose, and not your crucial savings.”

https://www.thesundaily.my/local/rm600000-n...-epf-MB10004019

This post has been edited by kembayang: Oct 20 2022, 09:45 AM

Comfortable?

In few years roadside nasi lemak cost RM20 each, each day budget for meal RM100 min.

One whole family meal budget at least RM200.

You’ll burn through your 600k less than 10 years.

\sudah tua, makan pun sikit saje. gigi tiada. selera makan kurang. kena kencing manis lagi, enjoy sky juice saja. food cost is low. but medical cost will eat your epf faster

That's IF EPF's dividend can outpace the inflation

600k, assuming u will live 20 years, it means u should be spending around 82 bucks a day

doable if u do not have a disease to take care off. if not, sure not enough

Go watch "Breaking Bad" because he is old and sick and don't have money. Similar situation.

why must retire?

Wow. Ur kids still living in ur basement is it? Lol

1.6mil more feasible.

Amurica mostly just living in debt. That's why medical cost is such a big issue there cause it can literally bankrupt someone if u so much as break a bone.

Good luck with rm600k

in actuality, it depends on how long a person will live... if expectancy goes higher, then it won't be enough at all

LOL nanti /ktard foreverarone living in parents basement terasa.

Time to study chemistry. Hope it's not too late.

If my kid, I kicked them out already. Though love.

600k is actually very less already. The truth is u need min 2 million and they know it as well.

Inflation, inflation, inflation. With RM 5 to a USD, RM 1m may not even enough.

All thanks to 60 years of apartheid regime.

The reality is only about 4% of adults in this country have over USD 100k net worth

Should say you wouldn't be starving to death with that amount serving you. It couldn't support a modest retirement lifestyle.

600k as in start retirement next year 2023 or start in 10/or20 years from today?

Cakap macam tak cakap.

Long write, i can only see one message in this.

<even those who are retired should only withdraw what they need so that the balance of their money can continue to grow>

This post has been edited by jojolicia: Oct 20 2022, 12:31 PM

80yo? That’s suffering for most.

Better legalise euthanasia so ppl easier to plan their retirement.

20 years projection with zero consideration of inflation, this EPF officer big fail.

The Madey way

Same amount of money means very differently across different spectrum of income earners. Some B40 may barely earned 600k in their entire working life, much less saved such amount.

For many working ppl, retirement probably mean end of shit treatment from bosses. Why not?

ok. will spend till left 600k when reach 55 yrs old.

600k is basic only...want comfortable at least 1m

Nasi lemak import , ayam import , teh tarik import , roti paratha import

Soon all food in Malaysia will be import

Just hope die faster after retire

Topkek 600k

600k per annum interest 5% =30k per year /12 month =rm2.5k per month

pay utility also rm1k liao TNB, water, , remain 1.5k to makan usage daily , 1.5k /30days = u can only spend rm50 per day , 1 meal also rm15 nowaday including drink , if go mall, parking, take mrt , bus , whatever extra fees u fuk up, just stay home

600k retire, doable

asume inflation = epf dividend

every month will have rm2500 to spend

more than enough if
1. spouse also have 600k
2. 600k no need spend on charsiew son
3. healthy or gov continue low price clinic & hospital

if you have passive income lagi comfort

make it 2 mil, then make sense

600k and relocate to rural area for retirement

Doable

FIRE movement how?
Haiz

let's say nasi lemak today Rm2
to hit Rm20 in 10 years, year on year nasi lemak inflation needs to be 25%
you willing to bet on that?

saya doakan.... untuk kita juga.

600k now, what about 20 years later? 1.2m?

600k?
try 1mil at least la

Ganinia also doubled its price since 10 years ago, and our economy is still OK-ish back then.

With the shit economy and upcar direction our country is heading, 10x of inflation/devaluation in 10-20 years? Yeah, totally see it coming, that’s if MYR still can at least maintain a single digit exchange rate to USD/SGD.

This post has been edited by msacras: Oct 20 2022, 10:01 PM

brader
it's 25% every year for ten years

means
2022 Ganinia 1 loaf Rm3
2021 Rm2.40
2020 Rm1.92
2019 Rm1.54
2018 Rm1.22
2017 Rm0.97
2016 Rm0.78
etc

you sure that was how it was? you sure that's how it'll be?

Assume retirement at 60
Live until 80

Thats 20 years

600,000/20 = 30,000 per year
30,000/365 = rm80 per day
30,000/12 = 2500 per month

No rental no car loan no hutang
Utility, food, live normal life should be ok

Right?

How to live normal life with 2.5k only

You tell the reality, I sked riot weh.

Just think how many can achieve that?

Let us stay in this opium comfort world.

No travel, no makan angin.

Everyday go out nearby pasar go home cook. Cannot fall asick.

Permanent stuck on shoe box or castle.

Nice retirement there.

Target 1 mil inside then can retire. At least 5k per month from dividend

Kaninia epf shud only be part of ur retirement plan. Not SOLE

This post has been edited by ben3003: Oct 21 2022, 07:08 AM

RM 6 = USD 1 soon...
That figure still works? Lol

Gov clinic rm1

not bad. somemore, this 600k can earn interest. not to say 600k sit there do nothing.

Buy fruits and vegetables also not cheap, how to eat healthily? Just eat 1 apple a day?

600k if inflation stay the same, but usually real inflation is 10% per year, so your 600k will relatively become rm60k in next 10 year

Latest is 1.5mil minimum

I don't think I ever bought ganinia for RM0.78 before

what good is 600,000 when the chicken price will soon be $50 one whole chicken?...

dimwit ppl cannot snip the cause is due to corruption that is not curb, and bad country management.

Those insist to stay in KL after 55.. Good luck with 600k.

Better stay in less congested Town.

I think the EPF boss is referring to 600K assuming retirement from present time or "soon to be retired" folks.