Workers & EPF members in DIRE straits - Living on RM42 per month for 20 years is impossible for 6.8 million or more people

Malaysian private sector and self-employed workers took out the OWN monies from the EPF accounts, hence reducing their OWN old age savings. 

The Malaysian government should have used government monies to help the people during Covid-19, floods and other crisis. After using the worker's monies, government and Minister of Finance should apologize and not claim it as a success.

Government employees have PENSION - which means that until they die, they will be receiving pensions, which is about 50% or more of their income whilst working. Employees of government statutory bodies, local authorities  and agencies have a different fund known as KWAP.

Being public servants, Covid-19 did not cause any reduction in income - but not the case for private sector and self employed workers.

The Malaysian government to overcome an economic crises - and possibly to get 'more spending monies' into the market - could be the reason, why the then government allowed EPF contributors to take out part of their 'old age savings' and spend it now to help Malaysia. The government did not care about the FUTURE - monies needed to sustain livelihood when one is OLD...

"Out of the total members under the age of 55, as at Dec 31, 2021, some 6.1 million members or 48% have savings balance of less than RM10,000 in their EPF accounts after the majority of members withdrew their savings through i-Lestari, i-Sinar and i-Citra."The RM10,000 balance shows that members are expected to have retirement income of less than RM42 a month for 20 years," it said.

How can anyone survive with RM42 per month - that is hardly enough to pay water/electricity bills, and for 20 years - that is until the age of 75? Will the Malaysian government be paying monthly welfare allowances of RM1,5000 to 6.8 million or more people? EPF once said that at 55, one needs at the very least RM250,000, better more noting the increase in cost of living. Kopi O ice used to be 80 cents or RM1, today it is RM2 in most shops.

Now, government monies, our monies, will be used to pay pensions of the public officers, including them MPs and ADUNs...what about the rest of Malaysians that work in the private sector or are self employed. What should be the maximum pension - I suggest that we should limit it to RM10,000 (or RM6,000) - that will allow the government some monies to help the other Malaysians who are trying to live with RM42 per month.

The government should set a target of giving everyone at least RM1,500 per month during their old age until death. 

TIME is now to set up a National Pension Fund for everyone, that will ensure that every citizen have a decent livelihood until death. UK has such a fund.

For the interim, the government need to set up a WELFARE scheme to deal with the very very poor ones, after they cease to earn an  income due to old age. Our current welfare schemes are simply outdated and most unrealistic.

We do not want our people to suffer in their old age.

EPF special withdrawals totalling RM101 bil benefit 7.34 mil members — MoF

Bernama

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Bernama

March 04, 2022 00:06 am +08

-A+A

KUALA LUMPUR (March 3): The Ministry of Finance (MoF) said the three special withdrawals from the Employees' Provident Fund (EPF), namely i-Lestari, i-Sinar and i-Citra have benefited 7.34 million members or 58% of 12.6 million members under 55 years old.

In a written reply in the Dewan Rakyat on Thursday, the Ministry said the total withdrawals amounted to RM101 billion.

The MoF stressed that the implication of these special withdrawals particularly from Account 1 had caused a long-term effect that is a significant drop in retirement savings of the members involved.

"Out of the total members under the age of 55, as at Dec 31, 2021, some 6.1 million members or 48% have savings balance of less than RM10,000 in their EPF accounts after the majority of members withdrew their savings through i-Lestari, i-Sinar and i-Citra.

"The RM10,000 balance shows that members are expected to have retirement income of less than RM42 a month for 20 years," it said.

Additionally, due to the special withdrawals, the percentage of members with basic savings (RM240,000 at 55 years) fell sharply from 36% in 2020 to 30% at end-2021.

This situation indirectly indicates that 70% or two-thirds of members aged 55 and below are in a precarious position whereby their funds are insufficient to retire above the poverty level.

"EPF estimates that members need to work for an additional 4-6 years to rebuild their savings which were withdrawn during the pandemic.

"Hence, any additional withdrawals under i-Citra or new special withdrawals would exacerbate the issue of insufficient retirement savings which is now at worrying levels," said the ministry.

Based on EPF statistics, the contributions for 2021 increased 2.6% or RM71.8 billion compared with RM70 billion in 2020.

The data indirectly showed that the reopening of the economy whereby businesses can operate fully has enabled workers to return to work and generate income to sustain their livelihoods.

Following this, the Ministry said various parties such as workers' unions had stated that any more withdrawals would jeopardise members' savings for old age, add to the government's financial burden in the future and contradict the objective of the EPF's establishment. - Edge Markets, 4/3/2022