EPF increases its minimum base savings target to 240 kws – Business News

KUALA LUMPUR: The Employee Provident Fund has revised upward the minimum basic savings target for retirement at age 55, to RM240,000.

The basic savings objective, which represents the amount deemed sufficient to meet the basic needs of EPF Fund members for 20 years in retirement, was previously set at RM 22,000.

According to a statement, the EPF said the new amount was compared to the minimum pension for public sector employees, which increased from RM 950 to RM 1,000 per month.

"The amount of the basic savings ETH is periodically revised according to the minimum pension of public sector employees, or every three years, according to the most recent date, the last revision having taken effect in 2017", said Balqais Yusoff, head of the EPF strategy management department.

As a result, members will now have to save more money on their EPF account to participate in the EPF membership program.

The system offers members the opportunity to invest a portion of their EPF savings in Account 1 in single trust funds or through private mandates managed by the designated Fund Management Institutions (IMFs).