Over 90% of EPF members under 30 do not save enough for retirement, says report

PETALING JAYA: More than 90% of EPF members under 30 need more basic savings for retirement, says Khazanah Research Institute.

Its Households and the Pandemic 2019-2022: The State of Households 2024 (SoH 2024) report released Thursday (Sept 26) said that only those in the 10th decile (D10) in the below 30-year age group have the required amount needed for basic retirement.

According to EPF’s estimation, an individual needs to have a minimum of RM35,000 by age 30 to achieve basic retirement savings of RM240,000 by age 55.

“Using this metric, the data shows that over 90% of members under 30 do not have enough basic savings of RM240,000 by retirement age.

“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 for retirement,” it said.

The report added that similar trends persist for those in the 30–54-year-old age group, as only contributors from the D10 group have the required basic savings of RM240,000 by the age of 55.

“However, within this age group, there may have been withdrawals made from their Account 2, which allowed for limited withdrawal purposes such as further education, first home and others,” it said.

The report added that the pandemic also caused a decline in EPF savings from 2019 to 2022, particularly for those in the 30-54 age group with various relief programmes such as i-Lestari, i-Sinar, i-Citra and the 2022 Pengeluaran Khas introduced in 2020 to 2022 that allowed for the partial withdrawal of EPF savings.

“The issue of low savings, attributed to the structural issue surrounding stagnant wages, remains a key concern for policymakers,” it added.

KRI urged that the target of RM250,000 savings be re-examined as it may be insufficient, considering Malaysia’s increasing life expectancy.

It also assumes that Malaysians only use RM1,000 per month for 20 years.

“Individuals approaching their respective retirement ages and beyond may face increased adversities such as health and disability risks alongside the depletion of their retirement savings,” it said.

https://www.thestar.com.my/news/nation/2024...ent-says-report

i swear i see this kind of news / thread every few months 🤣

1k self cook no debt then ok

Capitalism is proven to be unstable economic model causing job losses and increases wealth gap & poverty. But keep on 3R.

Don’t think 250k enuf to survive. More like a million. Recently looking at nursing homes for my aged parents, minimum aredi 4k per person, haven’t factor in medical cost, diapers etc

RM4K is way above minimum wage.

inb4 5M/person

According to EPF’s estimation, an individual needs to have a minimum of RM35,000 by age 30 to achieve basic retirement savings of RM240,000 by age 55.

“Using this metric, the data shows that over 90% of members under 30 do not have enough basic savings of RM240,000 by retirement age.

This above said and on the other hand, go create Account 3 for withdrawals.

This post has been edited by jojolicia: Sep 26 2024, 12:51 PM

no money for retirement baik mati shj.

240k, can only withdraw 1k+/ month.

enough to eat i guess, basic survival expenses.

Yeah, scary. Went around those Pj old town areas. 3500-5500 depending on number of beds/room.

Retire at GISB can stay free, bini free, anak free, makan fee.

tak cukup ... mintak lagi I withdrawal
promise last time d i will withdraw
.... just remember no $$$ d

er .... mintak parachute deposit ?
banyak yang tak withdraw tu, masuk lebih lagi - take their interest and gip some to me lar

lol….so tempting the offers🤪

Get a maid to take care for your aged parents is cheaper.

We hired full time carers 24/7 with some basic knowledge of taking care dementia patients Costing about 4.5k but carers fatigue is the problem. Cannot keep changing carers or maids.

once you settle your basic surivival needs, the rest are just for show purposes only.

So many temptations.

Ipong
Honda civic
Overseas trip
How to save money, owaiii

Because if cannot survive today, what more tomorrow?

Because now is YOLO.

by that time if house settled n car paid off 1k a month can manage kot… really frugal

240k? Ok I resign tmrw.
If cannot survive, PMX and DAP resign

This post has been edited by EX Unseen Forces: Sep 26 2024, 01:03 PM

ppl sud have freedom to choose..

wanna blow ur pensions early? good for u
wanna YOLO? good for u

but when time comes... u ready to telan a bullet?
or u wana become leech to society?

1K in coming 30 to 40 years is enough?
NO taking into inflation condition?

that is why majority are going to age in pain.

at least 500k for basic retirement plan now.

So many B40s.. no problem, madani will help.

hmm true also…. 1k from me 1k from wife… retire nothing much to do d.. can gua

Can la. This is provided house paid off, no outstanding loan.
And the calculation is for per pax, not per household. Meaning if household got hubby and waifu, so each person got RM240k in each other EPF.

RM 33 pocket money per day, okay la, do-able.

impossible, if the person dont have insurane and parent aging behind them, then yes

downgrade sikit la..

iphone, compatible
honda, no door
overseas trip, penang
then got money to save lor! 😂

1k per month?

if u not healthy... medical expenses will kill u
if u healthy... no money for anything beyond basics means u just waiting for death..

14th floor better...

cari kerja lah

Under 30 apa lanjiao they expect?


Ayam under 30 time 10k oso elek

This post has been edited by Ayambetul: Sep 26 2024, 01:24 PM

Agenda BMX

250-500k is wokay if you're dying in the next 10 years time!.

Hope there is no maintenance fees for your house and car?
Quit rent and assessment are based on your properties values.
RM2K from both you and your wife cannot cover 20 to 30 years later minimum wages, currently at RM1.5k.

5m is just nice.

I think estimate is for today. 240k is for 20 years starting today.

It assumes whatever inflation will be covered by interest from savings.

lol wut
What’s next:

90% of newborns do not have at least RM90 in their kwsp account, Malaysia is at a critical retirement crisis.

1k rm per month.. U need to compromise a lot in today's living standards. I wonder how many ppl can live with that..

This post has been edited by yhsiau: Sep 26 2024, 01:37 PM

with RM250k savings, you gets RM1,250 interest every months (@6%), without touching the principal.

Already got. Can retire now?

For sure, interest from EPF cannot cover the inflation fully because the method used is not daily rest like bank loan.

yea.. seems tough

definitely still working... u think age 55 automatically retire stay at home rot?

With AI coming more ppl will be jobless.

RM 1000/mth? Better die now. Work like a dog whole life and the live like a beggar during retirement?

Set low bar, result will be even lower. Set high bar, may achieve a bit more.

nowadays youngsters don't save money one...

no eyes see my young colleagues... spend unnecessarily ....

those who got paid slightly above minimal wage also i see them using iPhones...

This post has been edited by Chrono-Trigger: Sep 26 2024, 02:14 PM

Not only that.

If you read the article correctly. It is suggesting a 240k at age 55 in Yr 2049 (25 years from today) for those in the 30 yo today.

From that matrix, 90% of current 30 yo 'haves today' is not at that trajectory


The extract>
According to EPF’s estimation, an individual needs to have a minimum of RM35,000 by age 30 to achieve basic retirement savings of RM240,000 by age 55.

“Using this metric, the data shows that over 90% of members under 30 do not have enough basic savings of RM240,000 by retirement age

I ain't concern what 1k can you buy in 2049. Looking at the current (as reported) 90% of young adults at age 30 today NOT having 35k in kwsp is BAD.

It ain't gonna sustain well.

Rumble

This post has been edited by jojolicia: Sep 26 2024, 02:40 PM

actually can....
after retirement, no.1 expense is food.

RM500 for food old people is enough one.

This post has been edited by Chrono-Trigger: Sep 26 2024, 02:21 PM

No dinner?
No $$$ for festive celebrations.
No new clothes.
No repair & maintenances for house, car and electrical items?

60 years old celebrate what?
Wear new clothes for who to see? kau loi?
Dinner can eat a lot when old ? eat a bit stomach bloated
teeth also don't have liau, mostly soft food...

the one big thing is health expenses, but that one gomen covers..

This post has been edited by Chrono-Trigger: Sep 26 2024, 02:44 PM

IMHO ACC 3 is created for the wrong reasons, but if used correctly it is a very good feature. ACC 3 to me now is like an emergency funds account, it actually encouraged me to contribute voluntary the max 100k every year because I know I still have access to some of it if I really need it

I think anyone earning > RM2K will hit that RM240K by 55 years old.

sometimes these reports... don't really know what they are being printed for...

is it to justify something that gov is trying to push in near future? like raising retirement age or converting EPF into annuities like what SG did?

ty for your suggestion...but u r not me so sila duduk kat tepi

1mil also not enuf lah

Yeah. I can agree to that.

This post has been edited by jojolicia: Sep 26 2024, 03:07 PM

Apasal so exp 4.5k yah?

Wouldn't it be better if then hire 3 maids then ?

another day another epf news...somethings brewing

YOLO la,, keep so much money for what,,

Later died also,, or hit 55 later sickness come cannot enjoy d,,

Enjoy sikit, savings some,,,

Hello tauke, U forgot about medical issues.. at the age 60s, we will become high risk group for all kinds of disease & illness especially the chronic 1.. with such amount of $$$. U can imagine the rest of consequences.

KKM RM1

Can't even live 250k by 55, inflation with smack ur face hard.

1mil to 5 mil is the benchmark if u r living in urban city, like subang, Damansara ,Puchong

1 rm healthcare will provide what kind of quality? Will it ease your suffering?

*Double post*

This post has been edited by yhsiau: Sep 26 2024, 06:08 PM

Malaysian specialty.

Right hand don't know what left hand doing. Total disconnect. Kek

rm33 per day

water bill, electricity, internet, motor kar fuel, maintenance, medicals, cukai pintu, ED supplements etc

mati awal

means i t10 gang? 30yo time got more than 35k

You'd be surprised if you are indeed suffering from complex chronic diseases some private hospitals won't treat you and ask you go kkm

this is the minimum amount required to not starve to death.

private healthcare is obviously out of reach here.

Children can give ma

its meant to be survival minimum, like social security. not a comfortable retirement amount. but at least you wont have to beg on the streets.

like, if you fall and break bone, they will patch you up and give basic cast etc. but dont expect rehab, supplements, PT etc...

or if gigi got tooth decay, at least they will pull it out for you. but dont expect implants.

Gov should increase the mandatory contribution brackets, both employee's & employer's

Make it 16/20

This post has been edited by jojolicia: Sep 26 2024, 06:29 PM

2mil by 55yo should be cukup bah period. this kena frugal lifestyle oso. This provided we r healthy all the way to kingdom come bah.Insurance oso kena drop later after 65yo cuz will be so super mahal eh.
YOLO jer la

If the medicine you need is not available to you, you are asked to buy your own outside.

by 20, you need to have 1mil

by 40, you need to have 2mil

by 65, you would GET 5mil...

The solution is there:
- legalise euthanasia, have affordable package from GH:
- stop cheap govt medication, let ppl die naturally.

last year mom fell and went UM emergency. the meds they give is more than what we needed... and the meds not in stock buy in pharmacy,...we bought a little and nvr used it...

just follow xinjiapor CPF rates owai...

This post has been edited by diffyhelman2: Sep 26 2024, 06:33 PM

Here is a thought. In a communist country, a formula calculates how much a person needs for a lifetime of basic living. Example rm 1 mil.
So when a person dies, only up to 1 mil can be handover to each next of kin. The rest go to social security of the citizens.

its like you are talking about...an annuity....

the closest we have in a "democractic" country

https://www.cpf.gov.sg/member/retirement-in...ayouts/cpf-life

I have great concern reading this 2 para from kwsp. If the státs 90% is of active contributors by age 30 today, it is worrying and it ain't sustainable as a whole. It's a shrinking base.

If you are also reading it the same you will get what I mean. 35k is already a below par figure. 90%!!

I care less how much they can attain 25 yrs down the road but its the sustainability as a whole is the concern here.

According to EPF’s estimation, an individual needs to have a minimum of RM35,000 by age 30 to achieve basic retirement savings of RM240,000 by age 55.

“Using this metric, the data shows that over 90% of members under 30 do not have enough basic savings of RM240,000 by retirement age.

This post has been edited by jojolicia: Sep 26 2024, 07:03 PM

Epf is defined contribution, what u get out is what you put in, unlike a pension, so what shrinking base are we talking about? Those gen z with zero amount in their acct does not affect your millions in ur acct…unless u fear govt redistribute your millions

This post has been edited by diffyhelman2: Sep 26 2024, 07:03 PM

All in AAPL, the more ipongs you bought, the more gains you’ll get as shareholder.

Buy civic can get free BJ, save yourself the extra cheong expenses.

Oversea trip to Thailand can be even more money saving vs spend at local.

Ticket lagi penting

Luckily, I am in that 10 percent maybe

But I already above 30 now.

This post has been edited by GOPI56: Sep 26 2024, 07:41 PM

YOLO, janji drink Starbucks Chagee every day

Why retire at 55? Some people haven't retired>> 90+

Guys, just try for one month.

Am debt free, tried extreme frugal living for 6 weeks in a small town, cycled to speedmart, wet market, basic phone plan, cooked daily one meal breakfast outside roti canai or nasi lemak, one fridge, no aircond fan only, self wash clothes no wash machine, basic groceries eg toothpaste, detergent, bananas, cooking oil, toilet paper

Exclude any internet bills, medical cost, haircut, pet expenses, car trips visit kids, toll & petrol (assume no car) teh tarik with friends, race & competitions, home appliance purchase or repairs, house maintenance, clothings, etc

Spent RM2,430 for 6 weeks. PM me for breakdown if interested. Conclusion - need at least RM1.5K monthly for single healthy retired male in small town with fully paid and furnished premises (with no maintenance fee)

Why need to PM? You selling something?

Bero, really appreciate if you can post complete breakdown here in the forum, for more input from other forumer to discusd and learn together.

I think i hv a better idea.
Why cash out 240k to put under pillow, assuming using 1k/month will only last 20years.

Just continue park money inside epf after 55yrold to reap the "average 6% dividend " [ assuming epf still decent in future], annual dividend will be rm14.4k and permonth can enjoy rm1.2k.. and this monthly money is lifelong till one die.. after death still hv 240k money capital that can be passed to children . Am i wrong to think this way ?

This post has been edited by kenzotaj: Sep 26 2024, 10:10 PM

What other activities you did besides eat sleep cook laundry for 42 days?? Were you tasked to do something, get done during your stay there?

This post has been edited by jojolicia: Sep 26 2024, 10:10 PM

WTF you need to spend so much even after excluding those fixed expenses like internet bills, medical etc. I only spend RM 800 under the same exclusions. Yours is not frugal living at all

Put he blame squarely on Moo who opened the door for epf withdrawal before its due.