However, this was an improvement from the 31% in 2021 and 30% in 2022 – which were due to withdrawal facilities for EPF members during Covid-19 lockdowns – but still a plunge from 37% in 2020.
As at December last year, there were 16.07 million EPF members. 8.52 million were active members, representing 50% of Malaysia’s 17.03-million-strong labor force.
Target Amount At Age 55 - Basic savings is a pre-determined amount set according to age in Account 1 under EPF to enable members to achieve a minimum savings of RM240,000 by the age of 55. Current data showed that the number of people aged between 41 and 50 who had achieved their basic savings was higher than those aged between 51 and 55, who are closer to retirement age.
Target Amount At Age 55 - Basic savings is a pre-determined amount set according to age in Account 1 under EPF to enable members to achieve a minimum savings of RM240,000 by the age of 55. Current data showed that the number of people aged between 41 and 50 who had achieved their basic savings was higher than those aged between 51 and 55, who are closer to retirement age.
All this data is telling me that a large portion of the population has inadequate savings for retirement. 75% of members who had retired and taken out their savings in a lump sum ran out of money within five years.
Beyond Formal Employment - Rapid transformation of the working landscape, with more people shifting beyond formal employment, as one of the challenges, referring to a rise in gig workers and self-employment due to the Covid-19 pandemic.
Malaysia anticipates an increase in different types of jobs going beyond formal employment, including gig jobs, remote working, and independent contractors. While this group of people would generate relatively higher income, they would not have old-age protection as they are not covered by any social security.
Research showing that by 2040, 33% of employment in Malaysia was projected to be in the informal category. This would lead to lower likelihood of old-age income security and financial resilience upon retirement while at the same time, lowering the active formal membership base at EPF.
Beyond Formal Employment - Rapid transformation of the working landscape, with more people shifting beyond formal employment, as one of the challenges, referring to a rise in gig workers and self-employment due to the Covid-19 pandemic.
Malaysia anticipates an increase in different types of jobs going beyond formal employment, including gig jobs, remote working, and independent contractors. While this group of people would generate relatively higher income, they would not have old-age protection as they are not covered by any social security.
Research showing that by 2040, 33% of employment in Malaysia was projected to be in the informal category. This would lead to lower likelihood of old-age income security and financial resilience upon retirement while at the same time, lowering the active formal membership base at EPF.
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